Smith and Barnes International, a multi-national company, had a location in Lebanon staffed by, two U.S. expatriates, four U.K. expatriates, two Indian expatriates, one Kuwaiti expatriate. Three Russian employees traveled to the Lebanese location. All employees were forced to evacuate due to deteriorating security conditions and governmental instability.
Upon receiving the evacuation orders from the U.S. and U.K. governments, the company made the decision to evacuate all expatriate employees regardless if the employee’s country issued such an order.1 The main airport had closed and the anti-government forces made traversing portions of the country all but impossible.
All expatriate employees, their spouses and dependents were evacuated safely to Cyprus on ferry boats.2 The crisis response firm chartered the ferries and arranged for evacuation via this alternative method since the airport had been closed. Additionally, the crisis response firm consulted on methods to safeguard employees while making necessary travel plans and details on the best routes to take to the evacuation point given the security situation.3 While all employees were evacuated safely, they were forced to leave much of their personal property behind in Lebanon. After two months, security conditions improved in Lebanon and operations were re-opened, and the expatriate employees were able to return to the country.
The total cost to evacuate the expatriate employees was $119,000 plus the crisis responses fees and expenses.
Smith and Barnes International had a kidnap, ransom & extortion policy with expatriate and travel evacuation coverage extensions. The covered losses included:
- Fees and expenses of the crisis response firm.
- Travel costs for ferry passage for each employee, spouse and dependent.
- One night in accommodation costs in Cyprus for insured persons while arranging flights back to the resident countries (U.S., U.K., India, Kuwait, Russia).
- Economy class tickets for covered persons back to their resident country.
- Reimbursement for personal effects left behind that were irrecoverably lost.
- Economy class tickets back to Lebanon for the covered persons when operations re-opened.
Policy Benefit #1
Our policy includes a broadened security evacuation coverage trigger that does not necessitate that all foreign governments issue an order to evacuate. If the insured and the crisis response firm agree evacuation is necessary, coverage applies. There is no need to secure evacuation orders from all governments of employed expatriates.
Policy Benefit #2
Coverage applies to both the insured’s employees and their spouses and dependents.
Policy Benefit #3
Evacuation assistance is provided by the crisis response firm on travel security measures as well as alternate evacuation points.