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.

Although the ransom insurance is placed with certain Syndicates in the Lloyd’s market, Griffin-Underwriting uses Hart Security for the incident response and consulting services for clients.  As we discuss in many parts of the International Executive Security Monitor, a KnR program is only as good as the security expert that will be there “on the ground” in the event of an incident.  A $10,000,000 ransom benefit is essentially worthless without the proper consultant involved in the negotiation.

On arrival the HART Security Consultant will assist the family or business group and advise them on the most likely way in which the process of recovery will take place and how best to organize themselves. This activity takes place within the Crisis Management Team (CMT) that HART Security will help to establish.  The HART Security role is to support and advise the decision makers within the CMT, to allow them to follow a clear strategy and to avoid common mistakes in the negotiations. Their advice will always be in support of the objective – the safe return of the victim as quickly as possible.

Griffin has particular expertise in Maritime and Marine Kidnap and Ransom insurance and incident response and they provide a very informative PDF brochure on their maritime kidnap and ransom insurance as well as the tactics of Somali and other pirates and the maritime security measures that should be taken by each crew.  For example:

1. Liaising with naval vessels in high risk areas (letting them know you are there)
2. Having high pressure water hoses ready to go.  Many pirates in the past have been deterred with high pressure water believe it or not.
3. Fitting razor wire to the ship’s sides.  (pirate ships can be 30 to 50 feet below the deck)
4. Ensuring radio discipline so pirates cannot obtain information by monitoring channels
5. More is provided by contacting Griffin-Underwriting at info@griffin-underwriting.com   (or please contact McKinley International Risk Management to liaison with Griffin from North America)

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.

If Pirates had better boats, it would be much worse

We have not heard very much about the Somali pirates in the news recently and the reason for their lack of kidnap and ransom activity is because of poor weather and monsoon season.  The boats they use are so bad, that any sort of high seas and storm activity can send the boat to the bottom of the ocean. 

However, the bad news regarding the maritime and shipping kidnap and cargo seizure risk off the Somali coast in the Gulf of Aden is that the weather is improving and an increase in attacks is expected soon. 

Insurance products are being developed in the London market to help ship owners and shipping companies deal with the financial risk of the pirates, and they are not  just limited to Somalia.  Many are adopting or revising old marine kidnap and ransom polices to adjust coverage levels and add new coverage such as cargo special protection / special cargo protection that would indemnify shipping companies in the even cargo does not find it’s destination because of a pirate related incident. 

All shipping companies are advised to make sure their marine k&r polices are completely up to date.