Remain Silent


When you're a Victor Kidnap, Ransom & Extortion (KRE) policyholder you get exclusive access to the expert services of a leading international crisis management consulting firm. The following illustrates how a crisis response firm can help in a threat response situation.

The Facts 

Two employees of Transnational Mining Corp were kidnapped in Sonora state of Mexico by a local criminal gang. That night the kidnappers called the Transnational’s HR manager and made a ransom demand of 1.5 million pesos. Transnational contacted the crisis response firm associated with their kidnap, ransom & extortion policy, and began receiving immediate assistance over the phone.1 A consultant was deployed from the crisis response firm to advise the company. A crisis management committee was established by the insured, to which the crisis response consultant acted as advisor. Following six days of negotiations, agreement on the ransom payment was reached.

The ransom drop was performed by two members of the insured’s safety department. The victims were released unharmed when the ransom was paid.2 Local police, the military, the president of the municipality and the anti-kidnapping police were all informed of the kidnap, but none of the organizations volunteered any assistance.


The Result 

Following the safe release of the kidnapped employees, the crisis response firm debriefed the crisis management committee set up by the insured and separately debriefed the families of the victims. The employees returned to work after a month of recuperation.

  • Since the company had a KR&E Policy the covered losses included:
  • Fees and expenses of the crisis response firm
  • Ransom costs
  • Interest on temporary loan taken out to meet ransom costs
  • Costs of salary for kidnapped employees for duration of incident and for time off in the wake of incident recuperating
  • Costs of salary for temporary workers who were brought in to perform work of kidnapped employees for duration of incident and until the employees came back to work
  • Costs of salary for the employees specifically designated to assist in negotiating for the time spent on this
  • Costs of counseling for kidnapped employees and family in wake of incident
  • Costs of security guards engaged for two weeks at the recommendation of the crisis response firm to protect Insured’s premises
  • Costs of travel for the members of Transnational’s HR team who traveled to Sonora to meet and communicate with the families of the kidnapped employees

Policy Benefits

Policy Benefits #1

The policy includes unlimited coverage for the fees and expenses of the crisis response firm in response to an insured event as outlined in the base policy form.

Policy Benefits #2

The policy will reimburse for the ransom paid for an insured event, and the crisis response firm will assist the insured in identifying  and coaching who is best placed to communicate with / and make ransom delivery to the perpetrators.  If this is not someone within the organization, the policy will cover the costs of an independent negotiator / person to deliver the ransom.

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