One type of coverage no one like to think about needing is ransom insurance. However, with kidnappings and related crimes on the rise in certain parts of the world, this is one type of insurance that some many want to consider maintaining. Understanding the ins and outs of these policies can help you feel more secure.
What Insurance Covers
As the name implies, ransom insurance helps cover the payment of ransom money to kidnappers. This type of insurance can also cover death and other medical expenses should the need arise.
How Coverage Works
This type of insurance policy is what is known as an indemnity policy. This means that the provider will reimburse the ransom money after it has been paid.
Often with policies covering kidnapping and ransom, your provider will also offer access to crisis management experts and other forms of aid and counseling. This way your coverage offers both financial protection and emotional support in these shocking and stressful situations.
Depending on your situation, you may find peace of mind in having an insurance policy in place in the event of a kidnapping. In this case, a ransom insurance policy can help provide coverage for ransom costs as well as other supports during a trying time.
Most general liability policies do not cover sexual abuse or allegations of sexual assault. Business owners need policies that can account for sexual assault and related allegations. Most employers don’t want to entertain the possibility that sexual assault or misconduct might happen in their business. The problem is that it is always a risk and you are better off if you are prepared for it.
How Can You Cover Sexual Misconduct?
Coverages like sexual molestation liability insurance or improper sexual conduct are usually endorsements to a professional liability policy. These are add-on coverages. The coverages that these add-ons offer include:
- Allegations of negligent hiring practices
- Investigations of sexual harassment or assault claims
- Failure to report sexual misconduct
- Negligent employment practices
Adding an endorsement to your liability coverage is the best way to cover sexual abuse liability.
What Costs Do the Policies Cover?
If there are allegations of sexual misconduct, what will the policy help pay for? Most of the time, these policies will cover legal costs and also reputational damage. If there are allegations of sexual assault or molestation, it can hurt your reputation. The policies can cover losses due to the damage to your reputation.
Most employers hope that they will not have to use their sexual misconduct coverage. However, there is always a risk and all employers must have coverage. Every industry and business carries this type of risk.