International risk management and insurance differ from home country risk management and insurance in two important respects. First, the risk management process is different. You still need life, health, property, casualty insurance, etc., but your standard policies may not cover some international exposures, or require different procedures. We cover that in another article. Second, you may be exposed to new or enlarged risks, such as kidnapping. That is what we will cover in this article.
The health, safety, and security of you and your family abroad are often neglected. Your company may not have considered international risks, either, especially kidnap exposure. Let us share with you some insights to consider.
When it comes to kidnap and ransom insurance, your company may or may not have coverage, and even if it does, it may not be in a position to discuss it. In fact, you would be more of a target if it was known that it had obtained such coverage. Also, disclosure could void the policy. You should, however, look for signs that the health, safety, and security of you and your family abroad are covered, such as strong language to assure you that contingencies have been considered and planned for. There should be instructions for you to follow in case of emergency.
Unless you see such steps being taken, you should seriously consider getting your own coverages (or decline the assignment). Never has the old adage “you get what you pay for” been more true. Be sure to get adequate coverage from reputable companies with the experience to deal with contingencies. A decent policy may cost about $1,200 per year. In addition to extensive kidnap and ransom benefits, it should include unlimited on-site assistance. On-site assistance is often the crucial part to ensure a happy ending.
We have included phone and email contact information for international risk management and insurance at the Resources tab under the International Expansion header.