Against this backdrop of multiple hot spots and abduction risk, Kidnap & Ransom (K&R) insurance has become essential protection for businesses, religious organizations, K-12 schools, colleges and universities, the entertainment industry, hospitals, nonprofits and government contractors, among others. 

Awareness of K&R has grown to the point where risk managers, insurance professionals and executives in many industries and sectors, whether they're operating domestically or internationally, recognize its important role. While protecting their people is paramount, they also understand that meeting this duty of care requires robust protections. If businesses or organizations fail to meet that standard, employees, volunteers or others who are harmed carrying out their duties may respond with a lawsuit.

Today's K&R insurance coverage has kept pace with risk trends and changing needs: Its total-security approach combines the protection of insurance with the risk-management and on-the-ground services of a crisis-management-and-response firm. The response firm works hand-in-hand with the insurer and, more importantly, the client. In addition to kidnappings for ransom, extortion and illegal detention, coverages often include threats, disappearances and emergency evacuations. 

Comprehensive coverage is a necessity as criminal behavior continues to take new forms. Throughout the world's trouble spots, kidnappings remain a serious threat, often fueled by drug cartels and other criminal enterprises seeking new sources of income as internal and external power struggles cut into profits. 

But not all kidnappings follow this pattern. In the U.S., hospitals, schools and universities often buy K&R protection and use the risk-and-advisory component to create plans that guard against infants or children being abducted from their premises. This is just one example of how an insured can proactively work with the consultant firm that works in partnership with the insurance carrier.

In fact, many entities that buy K&R coverage see substantial value in the risk-management component: This is one reason agents and brokers encourage clients to begin working as early as possible with the crisis-management-and-response firm, well in advance of traveling to a new location.

Another important aspect of K&R coverage is that it enables policyholders to seek advice and intervention from the crisis firm. An employee could be the subject of threats or extortion, for instance, but may be unsure about how serious the situation is or how to respond. A crisis-management firm can evaluate the threat, determine if it's credible and gauge whether the company, and not just the individual, is at risk. The firm's experts can then advise accordingly. 

The role of an outside firm is especially important in cases where law enforcement is criminal or corrupt and seeking their help can be hazardous. 

As domestically based and global/international operations grow in importance for many businesses and institutions, the goal is not to limit opportunities but to pursue them safely. An effective K&R program that pairs a comprehensive policy with a top-notch crisis firm is indispensable in mitigating risk and managing high-stakes situations.