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Claim examples
Chubb Specialty Insurance

These are examples of real life scenarios we have encountered worldwide.

Kidnapped travelling
Two expatriate oil surveyors were travelling alone by car along an unfamiliar road when they were stopped at a roadblock.  Criminals, who were using the roadblock as a trap to rob passers by, decided to up the ante when they recognised two foreigners and kidnapped the pair.  One surveyor was released along with a $5m ransom demand to take back to the company.  The company selected its own security consultant, who was inexperienced and unfamiliar with the territory.  The demand of $5m was ultimately paid.  However, the negotiation of the safe return of the other employee took almost a year.
Ransom payment $5m, Expenses $500,000
In cases of prolonged abduction, Chubb’s policy can pay the salary of a kidnapped employee for up to 60 months.

Extortion threats from an anonymous source
A company’s CEO received an anonymous letter threatening to blow up several hotels unless a payment of $1m was made.  The letter appeared to by authored by a radical political group.  Risk consultants were retained to analyse the letter and assess the level of risk.  They advised that the risk should be taken seriously.  The company heightened the security measures at their hotels, and working with local authorities, unsuccessful efforts were made to contact the extortionist.  After four months, another threat was made, and again contact was attempted.  Eventually the extortionist stopped all communication to the company, and no new threats were made.
Extortion payment $0, Expenses $50,000
Chubb’s policy responds to extortion threats to destroy, damage or contaminate a company’s property.

Abducted while travelling on business
A company’s branch manager was abducted while driving back from a business meeting.  The kidnappers contacted the family and demanded $5m.  The family immediately called the local police and then called the company’s human resources manager, who contacted and retained the company’s designated security consultant.  The consultant determined the local police officers were acting in conjunction with the kidnappers.  Given the consultant’s experience and knowledge of the country, the consultant contacted the local police officers’ superiors and convinced them to negotiate the quick release of the victim.
Ransom payment $500,000, Expenses $30,000
Chubb can provide security consultants from one of the world’s pre-eminent security firms, The Ackerman Group, to assist in negotiating an employee’s safe return.

Abducted at gunpoint
On his way to a company event, an executive was abducted at gunpoint by a band of rebels.  The rebels demanded a $10m ransom payment from the company. The company immediately contacted their public relations firm and announced to the press their desire to pay the ransom demand for the safe return of the executive.  During the first few days following the kidnapping, the company secured the $10m and hired a security consultant.  After three weeks of negotiation, the company paid the entire ransom demand, and the executive was released unharmed.
Ransom payment $10m,  Expenses $150,000
In addition to covering the cost of the ransom payment, Chubb’s policy also covers the interest costs for a loan taken to pay the ransom or extortion payment.

Threats from an employee
Fired for poor performance, an exiting employee who had a history of violent behaviour demanded $100,000 and threatened bodily injury to his about-to-be-former employers if payment was not made.  This verbal threat was followed by a series of threatening letters and stalking of the company’s president.  Security consultants were quickly called in to provide security for the president and deal with the extortionist.  After several weeks, a meeting was arranged between the ex-employee and two police officers.  The man was informed of the seriousness of his threats and their legal ramifications.  As a result of the meeting, the ex-employee agreed to his termination pay and stopped his activities.
Extortion payment: $0, Expenses $60,000
Chubb’s policy can provide payment for reasonable expenses incurred in obtaining short-term security during the extortion period.

Abducted at home
The daughter of an executive living abroad was abducted from her home.  The father was contacted by the kidnappers, who demanded $500,000 for her return.  Fearing for his daughter’s safety, the father paid the ransom and she was released unharmed.  When the executive’s company was informed of the incident, it called in its security consultant.  The security consultant verified the incident and, in the process, concluded the family’s maid had been involved.
Ransom payment $500,000, Expenses $15,000
Fact:  Chubb’s policy can extend coverage to an employee’s family members.