New Jersey High Asset Divorce Lawyers Discuss Kidnapping Insurance to Protect Family Wealth
A majority of the kidnappings of American citizens for ransom occur outside the United States, with at least 20,000 kidnappings reported every year. However, some experts suggest that only 20 percent of kidnappings are actually reported. The number of ransoms is on the rise, because criminals are often lured by the promise of a big payout with little chance that the victims will report the crime. Yearly, kidnappers net over $1.5 billion in ransom payments. The prime targets are wealthy businesspeople and their families, traveling professionals, tourists, journalists, and aid workers.
Although kidnap and ransom insurance is not a necessity for everyone, certain people who are routinely exposed to the threat can greatly benefit, including those going through a high asset divorce. Policies can start for as little as $500 a year. However, the price can increase drastically depending on your level of risk. For certain individuals, the cost is justified when considering that a kidnap-and-ransom claim can cost a family millions.
Who Needs Coverage?
Corporations whose employees travel or live abroad often provide their employees coverage through a corporate insurance portfolio. These policies often extend coverage to kidnappings of spouses, children, relatives, guests, nannies and housekeepers. Non-governmental organizations (NGOs) and entities that could face lawsuits if their workers, volunteers, or students were harmed also commonly provide coverage. Media organizations are a notorious target for kidnappings, and companies who employ them should offer coverage. Finally, high profile travelers, such as celebrities and politicians are often targeted because they are known to be wealthy.
How Does It Work?
Usually, kidnappers require that victims do not notify authorities. Many policies include provisions stating that they only notify the insurance company when it is safe to do so. When an insured party does contact their insurer, they deploy specialists to help release the individual, and deliver the ransom. However, the family must pay the ransom up front instead of the insurer. Policyholders are later reimbursed.
Even the most basic policies cover the ransom payment, loss of income, bank loan interest and medical and psychiatric care, among other expenses, including cosmetic or plastic surgery costs, travel expenses, etc. Travel to certain countries where the US has placed sanctions is not covered. Policyholders who publicly announce coverage risk voiding it, because notice would tend to encourage kidnapping. In divorce cases involving high net worth, negotiating kidnapping insurance as part of a divorce settlement is highly recommended.
New Jersey High Asset Divorce Lawyers at Lyons & Associates, P.C. Are Experienced in All Aspects of Family Law
If you are going through a divorce and have a high net worth, you need the most experienced lawyers in your corner protecting what is yours. The New Jersey high asset divorce lawyers at Lyons & Associates, P.C. have a reputation of success. To schedule your consultation, call us at 908-575-9777 or contact us online today.