Business Extortion On A Global Basis

An overlooked element in kidnap and ransom insurance policies and expatriate security planning is business extortion

. Business extortion, on an international basis, refers to a situation where a threat is made against the property or the employees of the business operation in the host country.

If the threat is made against employees personally, it is normally made against the foreign nationals working in country or the expatriates residing there, and it takes the form of a physical threat. If you don't leave the country something terrible will happen to your children, is a horrible but all too common example. It can be left via email or it could be a simple note slipped under the door.

Business extortion demands can be political in nature or there can be a monetary demand. Business extortion against property comes in the forms of do this or we will do that to your property, plant and equipment in country. They may threaten to set international equipment on fire, or even blow it up, if certain demands are not made.

Companies should have an action plan for each host country where they have employees to combat business extortion. If the company has a good kidnap and ransom insurance policy in place for senior executives, or expatriates, most now cover extortion when there is a physical threat against an employee or an expatriate's family.

Kidnap and Ransom insurance is different than other kinds of insurance in that many insurers have strict rules about who can know about the policy. An employee who knows they have a policy may, for example, conspire to stage a kidnapping in order to fraudulently collect on their employer's policy. Similarly, it is never good to tell anyone in the country you are traveling to about your policy.

Although you may think a client or friend would not have you kidnapped, there is a strong likelihood that word will get out that you have a policy unintentionally. They might mention to someone else that they are thinking about getting a policy because you have one, and a would-be kidnapper overhears the conversation.

Because there are so many unknowns about who to trust, or whether someone dangerous will find out, Insurers stress the importance of keeping the existence of your policy confidential. In some countries, extortion demands against expatriates are so common; they are almost a weekly occurrence. All employees in a host country should know exactly what to do if a victim of business extortion or personal extortion threats against an expatriate's family.

by: Nicolas DAlleva

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