expertise, oversee operations, or assist in logistics, distribu-
tion, and so on. While overseas, these personnel are exposed
to the same risks as when doing business in the United
States, with the exception that the risks may be more com-
plex. Benefits, disability issues, Workers’ Compensation,
auto liability, and general liability are a few of the risks to ac-
company personnel overseas.
In certain countries, there may be a host of other expo-
sures based on local customs, culture, and legal differences.
Additionally, personnel who travel overseas are subject to
kidnap and ransom exposures. Kidnappings of business per-
sonnel have occurred in Central and South America, the
Middle East, and Europe, among other countries. Many times
company personnel and the general public are unaware of
these occurrences because the parties involved usually decide
to avoid publicity. Although is it not well-known, many cor-
porations maintain dedicated kidnap and ransom personnel.
One of the most important benefits of having a kidnap and
ransom policy in place is that it provides immediate access to
expertise that can assist in managing a kidnap and ransom
situation. Kidnap and ransom underwriters typically employ
former Federal Bureau of Investigation, Interpol, and Central
Intelligence Agency staff with the skills necessary to inter-
vene with hostage-takers and negotiate a favorable resolve. If
an executive is taken hostage, the kidnap and ransom policy
affords access to the expertise to take the next step.
If an executive traveling overseas is injured, sick, lost,
or requires personal assistance, there are companies re-
lated to the commercial insurance industry that provide a
global emergency hotline. Corporations and individuals
who travel overseas can purchase access to these services.
Kidnap and Ransom
When a company makes plans to locate overseas, it is
important to become familiar with the risks associated with
living and working abroad. One of the risks, which is often
RISK MANAGEMENT AND INSURANCE 141