CA Kidnapping and a $2M Ransom
Perhaps you have heard the news! This is not how you want to make the news in my opinion.
A California man who owns a luxury car dealership remains missing after he was abducted by three men in July near Los Angeles, California, according to authorities. His captors have demanded $2 million in ransom.
This example illustrates how the threat of kidnapping and extortion has dramatically increased. Control Risks recorded kidnap-for-ransom cases in 87 countries in 2017. Most cases were resolved quickly, but four percent had not been resolved within the first month.
Any leads generally will spur action – and such activities cost money. Liao’s situation is an example of why affluent individuals, families and large employers should consider a Kidnap and Ransom Insurance policy in the U.S. and Canada.
These policies generally cover costs associated with kidnapping, extortion, wrongful detention and hijacking as it applies to one or more individuals or a group. This essentially is an indemnity policy because it will reimburse a loss incurred by the insured. The policies do not pay ransoms on behalf of the insured, but it can include reimbursement for money paid by the insured for extortion or ransom.
It’s a policy that is for the family of the kidnapped person as much as it is for the individual. Policies are sold on an individual basis to affluent individuals and families and as part of group policies to employers. When selling to employers, they can treat it more as an employee benefit, much like a life insurance policy.
Kidnappings Can Happen To Anyone
- In 2014, more than two dozen Americans working for companies were kidnapped in terrorism-related incidents, according to CNBC.
- The U.S. government has traditionally not paid for ransoms for Americans kidnapped by terrorists, putting more of the onus on the individuals, families or companies themselves to help support recovery efforts.
- About 60 percent to 70 percent of overseas kidnapping of U.S. citizens goes unreported, according to the Bureau of Consular Affairs at the U.S. State Department.
Stay safe out there and have a great day!
The Davis Insurance Agency (an Affordable American Insurance company) in Wheat Ridge, CO offers auto, car, home, house, fire, workmen’s compensation, antique car, classic car, commercial, business, life, motorcycle, renters, ATV and RV insurance. Call us today for a free quote at (303) 233-1535