Companies Overlooking Most Crucial Part of Kidnap & Ransom Insurance Full protection comes from choosing an experienced crisis response firm with specific skills, says Lockton Report
KANSAS CITY, Mo., May 16, 2013 /PRNewswire/ -- The ransom and extortion industry is lucrative and the danger zone has expanded well beyond Central and South America, yet companies tend to downplay the importance of a Kidnap & Ransom insurance policy. Too often, companies complete an insurance application, choose the lowest price, and file it away without giving much thought to the decision that can make all the difference on the safety of their staff. A new report by Lockton explains how to choose a crisis response firm so that K&R insurance offers not only protection, but also preparedness in the event of a kidnapping.
The report, authored by Lockton's Michal Gnatek and entitled "Out the Shadows: Selecting Your Kidnap & Ransom Partners," identifies ransom and extortion industry trends and danger zones. Gnatek then reviews a process for securing K&R coverage and vetting crisis response teams to ensure a comprehensive insurance program.
"We recommend that insureds focus on the back room: the crisis response firm that will be on the other end of the phone when the need arises," Gnatek said. "They should have extensive language capabilities and a good history of successful negotiations, among other things."
After choosing a crisis response team, Lockton recommends companies work with their insurance broker to select the insurer who can meet their needs. There are many factors to consider, including the relationship between the insurer and the chosen crisis response firm. An experienced insurance professional can provide guidance throughout the process.
More than 4,450 professionals at Lockton provide 15,000 clients around the world with risk management, insurance, and employee benefits consulting services that improve their businesses. From its founding in 1966 in Kansas City, Missouri, Lockton has attracted entrepreneurial professionals who have driven its growth to become the largest privately held insurance broker in the world and 9th largest overall. Independent researcher Greenwich Associates has awarded Lockton its Service Excellence Award for risk management for large companies. For four consecutive years, Business Insurance has recognized Lockton as a "Best Place to Work in Insurance." To see the latest insights from Lockton's experts, check Lockton Market Update.