The Jerico Group has a unique expertise in the security of luxury yachts

Piracy and Maritime Kidnap and Ransom is not limited to the Gulf of Aden and is not only suffered by commercial shipping lines. Owners of luxury yachts can be especially susceptible to attacks both at sea and in foreign ports; and due to the success of the Somali pirates, piracy may well increase worldwide.  Yacht security should be taken seriously if the yacht is sailing internationally.

Criminal activity targeted at vessels and her passengers can include, but is not limited to: thefts while in port or at sea; assaults and kidnappings of the vessels owner, crew and passengers, while at sea or in a foreign port; theft of the vessel for salvage; or destruction of the vessel to conceal a criminal activity.  Even if the owners carry kidnap and ransom insurance, you want to stop an attack before it happens of course.

To help prevent criminal activity aimed at luxury yachts The Jerico Group advises a multi-faceted security plan. 

1.       First and foremost, the vessel should undergo a security refitting and the training of the crew to repel boarders and protect the vessel and its passengers. This might include: advanced lighting systems for the vessel and its surrounding waters while in port; vessel access denial systems; emergency crew warning systems; installation of a safe room; non-lethal defensive weapons; and the training of crew and owners in the applicability and use of all security systems. 

2.       The purchase of comprehensive vessel insurance that covers thefts of the vessel’s equipment and the passenger’s personal possessions. 

3.       The purchase of kidnap and ransom insurance that covers all waters and ports the vessel may visit. 

4.       Passengers should be briefed as to the vessel’s security measures and the duties and responsibilities of the security team. 

5.       The vessel’s crew should include a security team capable of protecting the vessel while at sea and in foreign ports. Because firearms can be a sensitive issue in foreign ports, the security team must be proficient in close combat and the utilization of improvised weapons. The Jerico Group recommends a security team primarily comprised of militarily trained special operations personnel with field operational experience or former law enforcement officers with documented personal protection training and experience. 

6.       The security team should be trained and experienced in personal protection operations. Vessel owners and passengers are at their greatest risk while onshore at visiting ports. Depending on the port’s risk factor, the security team leader may want to temporarily employ local military or law enforcement personnel for additional armed security and to help deter any legal problems which may be encountered if an attack takes place. 

This article is merely a primer on vessel security for luxury yachts. Additional information may be obtained through www.thejericogroup.com website.

Expatriate security planning and preparation is similar to what Toyota drivers are being told to do regarding runaway exceleration; prepare in advance.  All it really takes is to tell yourself three times, if my car starts to race shift into neutral, don’t panic, worst comes to worse I can turn the key off.  Panic and lack of preparation have left many dead.

Having someone walk expatriates through the possible situations and actually spending one full day on expatriate security can be the difference between life and death or kidnap and ransom.

Expatriate security and pre-departure preparation means running each possible scenario through… ahead of time.

If you are going to Mexico city here are your expatriate security issues.  Are most employers dealing with these expatriate security concerns in advance?  No.

1. Should I get in a green taxi.. ever?
2. Has there been an international security site assessment both on where I will work and where my family will live?
3. What do I do if someone enters my car?
4. What to do if someone enters the house?
5. Do I have a security emergency number, and who can I reach in an emergency?
6. Is there a political evacuation plan?
7. Who is my security contact back in the home office or locally in Mexico City?

Effective risk management and expatriate security (against violent crime,  political unrest, medical emergencies, kidnap and ransom, hotel fires, extortion, auto accidents etc.) is dependent on effective decision making and making good choices through preparation.

The expatriate policies and procedure manual should have an entire section on expatriate family security, it should not be mentioned just in passing.

The results are very surprising because it’s expected that United States citizens would be the most at risk for kidnap and ransom.  The reasons the Chinese are at risk is simple, they have the largest number of people traveling to high risk locations for kidnap and ransom around the world.

Of course, from this fact we can form several conclusions, most notably that the country of the kidnapping victim and how their country treats kidnappers is of no concern to the kidnappers.  The United States made a strong case on how it will treat kidnappers in 2009 when the Navy Seals shot and killed maritime pirates on the Maersk ship Alabama.  We suspect the Chinese special forces would not treat the kidnappers of their citizens with any gentler gloves than the Americans.

For more information on kidnap and ransom insurance for expatriates and travelers please contact McKinley International Risk Management.

It’s amazing how many U.S. expatriates moving to the Middle East do so without spending time on the necessary due diligence regarding the safety of themselves and their families heading to Dubai, Jeddah, Jordan, and other areas in the Middle East.  Most large U.S. multinationals will have some sort of kidnap and ransom insurance policy for expatriates moving to the Middle East.  The irony is, the expatriates are not able to obtain any real tangible information about the kidnap and ransom insurance program that is provided to the expatriates by the multinational employer.  If the expatriates are made aware of the details of the kidnap and ransom insurance plan provided to expatriates in the Middle East, in most cases it will void the policy and cancel the kidnap and ransom insurance.

Benefit Managers with expatriates in the Middle East are advised to say the following to their expatriates regarding kidnap and ransom insurance policies for those expatriates heading to the Middle East.

“…Due to security concerns and the advice of our international insurance companies, security vendors and consulting companies we are not allowed to give you the details of the security measures we have taken to protect you and your family while living in the Middle East.  However, we can assure you the steps we have taken to provide for your security are above and beyond the best practices of those in our industry.”

Of course, expatriates heading to the Middle East, and worried about the kidnap and ransom insurance threat, and security in the region in general, should always be provided with an emergency number to call for ANY reason, if they feel they are being threatened in any way.

This 24 hour phone number for international security concerns would go to the international security consultant that would coordinate with the kidnap and ransom insurance company, or mobilize the resources necessary for a political evacuation or to combat extortion.

Juarez Mexico Kidnappings affecting America

Kidnap and ransom insurance is not just for fat cat expatriates globe trotting the world.  The market right here in the U.S. is growing and for good reason.  Most Americans are not aware of the extent of kidnappings in Phoenix.

In what is now a dangerous and deadly crime wave, Phoenix, Arizona has become the kidnapping capital of the United States, with more incidents than any other city in the world outside of Mexico and over 370 cases last year alone.

Do most people in the U.S. even consider KnR insurance, now.  Most of the kidnappings are related to the drug trade and the ridiculous problems they have across the boarder in Juarez Mexico, however, ordinary people are not left out of the problem.

Kidnappings and other crimes connected to the Mexican drug Cartels and are spreading across the border, from Texas to California. A  news investigation uncovered horrific cases of chopped-off hands, legs and heads when a victim’s family doesn’t pay up fast enough (basically, the worst parts of the movie Scarface).

To combat the crime, the Phoenix police have created a special unit to handle the kidnappings called the Home Invasion Task Force, which has pulled more than a dozen officers off other assignments. The crimes are occurring across the valley and in all types of neighborhoods.  Kidnap and ransom insurance is actually being purchased by U.S. citizens living in their own neighborhoods.

As the success rate goes up, the cost of marine kidnap and ransom insurance goes up as well

For many shipping companies operating in the Gulf of Aden (as well as 3 or 4 other regions around the globe) a marine kidnap and ransom insurance policy or maritime KnR policy is now an essential part of doing business in the region.

Last year, the pirates attacked over 110 ships in the Gulf of Aden region, and the pirates were able to capture about 40% of the ships targeted, an incredibly good percentage that will just inspire  more maritime hijacking.

Kidnappers, with the Somali pirates being the most infamous, want to secure kidnap and ransom money for hostages and they totally ignore the millions of dollars of cargo these ships carry because they can’t move the product.  Actually, they have no port that can even doc these massive ships let alone move thousands of  pounds of cargo off the ship by crane.

Maritime and marine kidnap and ransom insurance policies, provided by certain syndicates of Lloyd’s of London for example, would pay a ransom benefit to pirates (for example, up to $3,000,000 or $5,000,000) and provide expert consultation to help get hostages returned safely.

Unlike kidnappings and hostage taking in Central America for example, where the return of victims can mean small ransoms of $50,000 or less, whether there is a kidnap and ransom insurance policy or not, pirates that commandeer large ships know there is a lot more they can get from deep pockets, and often set ransom money at $3,000,000 or more.

The navy seal operation against the Maersk ship Alabama in 2009 will hopefully help to deter at least some piracy, but with many pirates collecting millions of dollars and the success rate better than robbing a 7-11, incidents will increase.

It does not matter the currency, Kidnap and ransom fees add up quickly

It is said that a good kidnap and ransom insurance policy can easily be separated from a poor policy by looking at the expenses it pays for.  Most people will look right at the benefit itself.  A K&R insurance policy with a $250,000 ransom benefit can be ten times as good as a policy offering a $1,000,000 benefit, and expenses paid (or not paid) by the K&R policy is a major differentiator.

A company with a poor policy will quicky realize it as such when they start getting bills for $3,000 a day for expenses and bills not covered by the insurance policy.  In an international kidnapping, and expert is needed on the ground to do the negotiations, and these could last weeks or even months.

A good kidnap policy should contain all expenses paid, at a very high amount or better yet, on an unlimited basis.  A good independent consulting firm that does the hostage negotiation or kidnap negotiation probably has some already on the ground or in the region that they can call on.  Let’s look at just some of the expenses and fees.  This person or persons need to fly into the location.  They will need lodging and will need to eat.  They will need to transport equipment and set up a command center for perhaps weeks or even months.

A kidnap and ransom negotiation that takes 60 days may cost $180,000 if expenses are $3,000 US a day.  Making sure all expenses are paid by the kidnapping insurance you are taking, is the first priority but amazingly, often overlooked.

All HR Managers with employees working abroad should see the move.

Welcome to our website, dedicated to understanding global kidnap and ransom insurance and best practices for individuals and companies in dealing with global security threats.  The world in 2009 is not the same as it was just 10 years ago.  Americans are targets.  Executives that work for large corporations and industry are targets of kidnap, extortion, and other threats.  Even those on vacation can be targets. 

Unfortunately, most people are completely unprepared for any threat that may happen while they work or travel internationally.  Most Americans that travel into the third world do not even take out an international medical evacuation and assistance program let alone an international personal security plan or kidnap and ransom insurance.  We are here to provide the information necessary so the proper decisions can be made at any level.