Protection Claims Scenarios Factsheetl
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Special Protection Solutions Claims Scenarios The global security environment has changed over the last decade. Organizations are now faced with managing a variety of complex security issues ranging from extortion and kidnapping to travel evacuations and threats. While some perils may be more prevalent in certain areas of the world, most are now of serious concern to an organization’s international and domestic operations. What threats does your organization face and are you adequately protected? Kidnap Detention Extortion Threat Response Travel Evacuation Disappearance Express Kidnap Hostage Crisis Assault Child Abduction Customer Identity Threat
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Transcript of Protection Claims Scenarios Factsheetl
Special Protection Solutions Claims Scenarios
The global security environment has changed over the last decade. Organizations are now faced with managing a variety of complex security issues ranging from extortion and kidnapping to travel evacuations and threats. While some perils may be more prevalent in certain areas of the world, most are now of serious concern to an organization’s international and domestic operations. What threats does your organization face and are you adequately protected?
Kidnap Detention Extortion Threat Response Travel
Evacuation Disappearance Express Kidnap Hostage
Crisis Assault Child Abduction Customer Identity Threat
1 Location: Pakistan
Covered event: Kidnap
While traveling in a vehicle four local national aid workers were ambushed and kidnapped by alleged Al Qaeda militants. Negotiations lasted for 320 days, with the kidnappers finally agreeing to a ransom payment of $1.2m. However, this was not the only loss suffered. One of the kidnapped victims was killed while in captivity.
Covered expenses may include:
• fees and expenses of Control Risks security consultants
• ransom payment
• loss of ransom in transit
• losses as a result of a personal accident.
2 Location: Korea
Covered event: Detention
A Chinese national working for a ship surveying company was detained in South Korea for allegedly stealing protected trade secrets pertaining to shipbuilding. The defendant was held for several months while prolonged court hearings took place. Eventually, the defendant was acquitted on the grounds that he was contractually at liberty to access the architectural drawings.
Covered expenses may include:
• fees and expenses of Control Risks security consultants
• legal liability amounts in connection with a judgement, award or settlement
• rest and rehabilitation fees.
3 Location: Mexico
Covered event: Extortion
The manager of a corporation received a phone call in which he was advised his wife and daughter’s lives were being threatened. The caller demanded delivery of a ransom payment to a specified location in exchange for their release.
Covered expenses may include:
• fees and expenses of Control Risks security consultants
• expenses for temporary security measures.
4 Location: United States
Covered event: Threat response
An employee was fired from her office job for incompetence on a Friday. As she left the building she said: “I hope none of you are here on Monday as I’m coming in for payback”.
Covered expenses may include:
• fees and expenses of Control Risks security consultants
• temporary physical security fees
• threat assessment fees.
5 Location: Kenya
Covered event: Travel evacuation
Eight mission workers were suddenly caught in post-election violence in Kenya. Commercial transportation was unavailable, forcing them to embark on a 40-mile journey, without security, across the border to Uganda.
Covered expenses may include:
• fees and expenses of Control Risks security consultants
• travel and accommodation costs
• replacement costs for lost personal effects.
6 Location: China
Covered event: Disappearance
A professor travelled to China to speak at a prestigious university. Airport passenger records showed that he arrived on Friday but he never showed up to deliver his lecture on Monday morning.
Covered expenses may include:
• fees and expenses of Control Risks security consultants
• investigative expenses
• repatriation expenses.
3 Location: Mexico
Covered event: Express kidnap
An executive traveling in Mexico City was grabbed while walking to his hotel. He was driven to an ATM machine and forced to take out money before being stripped of his personal possessions. The kidnappers held him overnight and forced him to withdraw more money before beating him and dumping him on the street.
Covered expenses may include:
• losses as a result of a personal accident
• counselling fees
• rest and rehabilitation fees.
7 Location: Philippines
Covered event: Hostage crisis
A bus full of tourists headed south of Manila was stopped by masked men armed with AK-47s. The armed men forced themselves onto the bus and held their captives for eight hours until the police intervened, killing the captors and three of the victims.
Covered expenses may include:
• fees and expenses of Control Risks security consultants
• psychiatric care and medical care fees
• rest and rehabilitation fees
• legal liability amounts in connection with a judgement, award or settlement.
Special Protection Solutions Claims Scenarios
4 Location: United States
Covered event: Assault
A former student returned to campus at a Midwestern university and opened fire on staff and students in a lecture hall, killing five people before finally turning the gun on himself.
Covered expenses may include:
• fees and expenses of Control Risks security consultants
• physical security fees
• counselling fees
• salary replacement
• public relations fees.
4 Location: United States
Covered event: Child abduction
A new mother sat in her room in a secure private hospital feeding her newborn baby. A woman in a nurse’s uniform came into the room and told the mother she was taking the baby for tests. The mother handed the infant over and within minutes, the ‘nurse’ walked off the hospital premises, carrying the baby.
Covered expenses may include:
• fees and expenses of Control Risks security consultants
• investigative expenses
• counselling fees
• travel and accommodation costs
• public relations fees.
4 Location: United States
Covered event: Customer identity threat
A medical transcriptionist attempted to extort money from a California hospital by threatening to reveal confidential information about the hospital’s patients. The hospital refuses to pay and the extortionist published confidential patient records on the internet.
Covered expenses may include:
• fees and expenses of Control Risks security consultants
• investigative expenses
• public relations fees.
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Why Hiscox
Hiscox provides clients with exclusive access to Control Risks, an independent, specialist risk consultancy. Founded in 1975, Control Risks has handled over 2,170 cases of kidnappings, extortions and other crises. Control Risks’ security consultants can deploy worldwide for Hiscox clients, usually within 24-hours.
As the leading provider of kidnap and ransom insurance, Hiscox Insurance Company Inc. is rated A (Excellent)* by A.M. Best. Hiscox offers unrivaled industry knowledge of complex security risks. With nearly 30 years of experience, our kidnap and ransom underwriting team offers unparalleled expertise.
About Control Risks
Hiscox’s Kidnap and Ransom policy includes exclusive access to Control Risks, an independent, specialist risk consultancy. Control Risks has more than 35 years of experience in crisis response and has advised on a variety of cases. Control Risks handles cases involving kidnap for ransom (whether short or long-term, financially, politically or otherwise motivated), hostage takings, ship and aircraft hijacks, political detentions, and other threat extortions. Staffed with a full-time team of consultants, Control Risks’ consultants are able to deploy with minimum notice to a crisis anywhere in the world.
As a matter of policy, Control Risks does not employ sub-contractors, enabling them to ensure better quality control and the best service possible to their clients, which is vital when lives are at stake. Individuals trained in ‘hand-holding’ are located at a number of Control Risks’ international offices and are able to deploy to the incident scene where they can provide advice and support until the response consultant arrives. Control Risks and its clients collaborate with a wide range of national or international investigative and law enforcement bodies, including the FBI, British Metropolitan Police, US State Department, food safety bodies, regulatory bodies (e.g. TGA in Australia), as well as regional and federal police forces. Where they exist, they also have experience in liaising with anti-kidnap units. In all cases, Control Risks consultants assist clients in complying with domestic laws and legal requirements.
Contact information
Insurance brokers are welcome to contact us. Two ways to find your regional contact:
hiscoxbroker.com/contact-us/
Northeast: 646 452 2353 Southeast: 404 410 2800 Midwest: 312 380 5555 Northwest: 415 814 1455 Southwest: 213 412 1210
About Hiscox in the US
Hiscox, the international specialist insurer, is headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). There are three main underwriting parts of the Group - Hiscox London Market, Hiscox UK and Europe and Hiscox International. Hiscox International includes operations in Bermuda, Guernsey and the USA. Hiscox Syndicates Ltd is authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. The ability of syndicates at Lloyd’s to do business in the USA, and its territories, is restricted as they are not US-based insurers. Hiscox Underwriting Ltd and Hiscox ASM Limited are authorized and regulated by the Financial Conduct Authority.
Hiscox Inc., a Delaware corporation headquartered in New York, d/b/a Hiscox Insurance Agency in CA, is a licensed insurance intermediary for admitted and surplus lines business. Hiscox Inc. underwrites on behalf of, and places business with, Hiscox Insurance Company Inc., other domestic insurers, and syndicates at Lloyd’s (www.lloyds.com). Hiscox Insurance Company Inc. (NAIC Number 10200) is a Chicago, IL domiciled insurer, which is admitted or licensed to do business in all 50 states and the District of Columbia.
Inquiries as to insurance or other products or services should be directed to an insurance agent or broker licensed to conduct business in the relevant US state. For further information about an insurer’s ability to do business in the USA and US territories please contact a licensed agent or broker for advice.
This communication provides general information on Hiscox’s products and services only and is not intended to be, and does not constitute, a solicitation of business by syndicates at Lloyd’s from or in respect of the USA or US territories. Coverages are subject to underwriting and may not be available in all states. The information contained herein is not a part of an insurance policy, and may not be used to modify any insurance policy that might be issued. In the event the actual policy forms are inconsistent with any information provided herein, the language of the policy forms shall govern.
*A.M. Best rating as of December 5, 2013.
8648 10/14T 646 452 2353 F 212 922 9652www.hiscoxbroker.com
Special Protection Solutions Claims Scenarios
