K&R Coverage Question

[Big Dog]

The organization that I work for carries K&R insurance. It's always been my understanding that knowledge of this coverage is toe be kept silent - i.e. you don't "advertise" to staff or anyone that you carry this coverage, otherwise the carrier could have grounds to deny a claim/void coverage. Am I on target?

[scott]

Its a risk management suggestion made by some advisers. I have never seen a warranty in a policy.

[LadyBroker]

I would suggest that advertising that your firm carries K & R coverage could make the employees more of a target...but good for your firm to be smart in carrying that coverage!

[gregcw]

I HATE making myself look stupid, but with 26 years in this business I have to admit that I am absolutely clueless as to what K&R coverage is. I thought that I knew most of the 'alphabet soup'. Could someone please enlighten me? My true hope is that I'll recognize the name even if I don't recognize the initials.

[scott]

Not a stupid question at all. We should all remember that our business is exceedingly diverse. Some of us are generalists and others specialists.

Kidnap and Ransom.

[scott]

I have received several private messages about kidnap and ransom and the idea that insureds should not disclose the existence of the coverage.

This has been common "wisdom" in the industry forever. It is the kind of thing that gets said and repeated as gospel. It is simply not true.

The idea that public knowledge of an insurance policy causes claims is just silly.

If it were true we would hold secret the fact that we have any form of liability coverage. Does anyone think that doctors having professional liability insurance causes lawsuits? Don't tell anyone you have general liability coverage; they might slip on your sidewalk!

[Big Dog]

Interesting responses. "technically" I agree with Scott, but... I purposely left out some pertenant details. Specifically, the firm I work for is a large (multiple locations) hospital. The K&R coverage includes coverage for infant abduction. Given this knowledge, would you still hold to the view that making it general knowledge that this coverage is in place would not make a difference?

Our concern is that by letting the general staff know of this coverage, it might leak to the wrong people, who would abduct an infant just because of the potential $$.

[scott]

Almost every bank in America has kidnap, ransom, and extortion coverage. It's no secret. There are no rash of bank extortion going on because of the insurance.

Why does the general staff at a hospital need to know about insurance - K&R or any other coverage? My hospital client's staff focus on the procedures that prevent abductions and those that are to be implemented if an abduction occurs. Insurance is not a part of those plans (though it pays for post-event actions).

For my international clients K&R is most important for the comfort that goes with knowing who to call if something happens. Most international insurance companies have teams of specialists ready to act in the event of an event.

Chubb and AIG's teams are superb - with experts around the world with local knowledge - because in some parts of the world the police are a part of the problem.