When many people think of Special Risks (K&R) insurance, they picture multinational executives travelling to high-risk regions of the world. In reality, today’s risks are often far less predictable and much closer to home.
A Recent Reminder That Victims Aren’t Always the Intended Target
Earlier this year, an 85-year-old Australian grandfather, Chris Baghsarian, was abducted from his home in what police described as a case of mistaken identity. Investigators believe organised criminals had intended to kidnap someone else entirely.
The case attracted international attention because it demonstrated a sobering reality: organised criminal groups do not always get it right. Innocent individuals can become victims simply through circumstance, mistaken identity or proximity to an intended target.
Whilst no insurance policy can prevent such a tragedy, incidents like this highlight the importance of having immediate access to experienced crisis response professionals should the unimaginable occur
More Than a Ransom Policy
One of the biggest misconceptions surrounding Special Risks insurance is that its primary purpose is to reimburse a ransom payment.
In reality, the greatest value often lies elsewhere.
Our specialist Special Risks policies provide immediate access to experienced crisis response consultants – many of whom are former law enforcement officers, military personnel or professional hostage negotiators. Their role is to support clients and their families through what is often the most stressful event of their lives.
Support can include:
- Immediate crisis management following an incident.
- Specialist hostage and extortion negotiation.
- Liaison with local authorities and law enforcement.
- Family support and communications management.
- Intelligence gathering and security advice.
- Assistance with wrongful detention, extortion and other crisis events where insured.
These specialist teams are available from the very first phone call, helping clients make informed decisions during the critical early hours of an incident.
Which Clients Should Brokers Be Thinking About?
Special Risks insurance is no longer solely the preserve of multinational corporations.
Increasingly, it is being considered by:
- High-net-worth individuals and families.
- Company directors and business owners.
- Businesses with employees travelling internationally.
- NGOs and charities operating overseas.
- Professional services firms with global operations.
- Organisations concerned about extortion, wrongful detention or crisis response capabilities.
For many clients, the reassurance comes not from expecting a kidnap to occur, but from knowing that if an extraordinary crisis does arise, they have immediate access to specialists who deal with these situations every day.
As brokers, we spend significant time protecting our clients’ homes, businesses and assets. Special Risks insurance provides an opportunity to protect something equally valuable – the people behind them.
If you would like to discuss which of your clients may benefit from specialist Special Risks cover or would like further information on the crisis response services available, please contact the Markham Special Risks team.