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Kidnap and Ransom insurance for international NGOs

International NGOs are increasingly exposed to risks. Their missions are becoming more complex: relief to populations in need, following climat disaster or armed conflicts. The conditions of these missions are deteriorating and humanitarian workers are becoming targets.

It is therefore essential for you to protect your international and local staff, and volunteers in all your countries of operation.

In the event of a crisis, you must act quickly. The “Threats and Kidnapping” insurance policy, also known as “Kidnap and Ransom (K&R)” insurance, provides international coverage and, above all, guarantees that the insurer will use all the technological and human resources at its disposal.

Managing a crisis

Threats and Kidnapping insurance is now available to all NGOs. Coverage is flexible and is tailored to the organisation’s activity, staff and locations.

This insurance helps managers or the Crisis Management Team (CMT) to deal with threats, extortion or to manage a ransom demand following a kidnapping, with the help of specialist crisis management consultants. These consultants are experienced in crisis management and aim to resolve the problem as quickly as possible, protecting the victim(s) and the NGO’s interests. The consultants provide expertise and advice in accordance with national and international law.

Key point : A kidnap negotiation service with trained professionals to communicate directly with the abductors on matters relating to the payment and delivery of the extorted money, and the safety of the victim.

It is also possible to add extensions of cover: the NGO’s civil liability, hostage crisis, repatriation or political evacuation (complementary to medical evacuation).

In addition, our clients benefit from a subscription to a Security Information Portal, informing them of security developments around the world through reports. The portal provides daily news, travel and security memos including city and country ratings and real-time alerts.

Financial protection

The second part of this Kidnap and Ransom insurance consists of reimbursing all the costs incurred during an event:

A basic policy typically covers ransom payment, hostage crisis, loss of income, interest on bank loans, and medical care. Many policies also cover the costs of consultants for crisis management, support services, and even public relations expenses for NGOs. In addition, a policy purchased by an employer covers potential lawsuits against the NGO by the employee who was kidnapped.

Some Kidnap and Ransom insurance policies also pick up the tab for losses due to injuries, related cosmetic surgery expenses, time off work after release, travel expenses and reward money paid to informants. Damages due to extortion, terrorism, and wrongful detention can be covered too. In a worst-case scenario, funeral expenses may also be covered by kidnap and ransom insurance.

With this cover, NGOs will be assisted and advised and the human consequences will be limited. As well as peace of mind that all the financial costs will be covered.

The cost of a crisis varies greatly. The total costs can sometimes reach very large sums, in the thousands or even millions of euros.

In addition to this insurance, we advise our clients to implement preventive actions for their employees: safety practices and rules, evacuation plans, crisis management, etc. For certain high-risked missions, we offer a support service with our specialised partners.

Important : Never tell to your staff that you have a Kidnap and Ransom insurance. Publicizing this insurance dramatically raises the risk of your staff being kidnapped and may void your policy.

Insurers take into account these prevention and protection actions implemented by our clients in order to calculate the insurance premium. Prepared employees represent less risk according to the insurers.

The insurance premium will also be calculated according to different criteria, such as: the number of employees on short term mission and expatriates, the countries and regions of intervention and the prevention methods put in place.

Kidnap and Ransom insurance protects international NGOs against financial losses that result from kidnapping, extortion, and ransom demands.

Although these policies are often complicated and sometimes expensive, they are an absolute necessity for NGOs’ staff traveling to areas where the kidnapping risk is high.

To read : Humanitarian Risk Security Management