Special Risk Insurance for Conflict Zones & High-Risk Regions

What Is Special Risk Insurance?

Special risk insurance is a category of coverage designed for people and organizations operating in locations where standard travel, health, or life insurance either excludes coverage or doesn’t apply at all, such as active conflict zones, politically unstable countries, and regions with elevated kidnapping or terrorism risk.

It typically combines several coverage types, including kidnap and ransom (K&R) protection, war risk and terrorism coverage, accidental death and dismemberment (AD&D), and medical or life insurance built specifically for hazardous environments.

Expat Financial arranges special risk insurance for individuals and organizations working in some of the world’s most volatile regions.

Through our parent company, TFG Global Insurance Solutions Ltd., a Lloyd’s of London appointed agent, we provide access to specialist underwriters and syndicates that most standard insurers won’t touch. We also work with partners and associates in the UK who place the coverage for our clients, especially in the kidnap and ransom coverage space.

Special Risk Insurance at a Glance

• Who it’s for: Aid workers, NGO staff, security contractors, mining and energy sector employees, journalists, and corporate employees deployed to high-risk or conflict-affected regions. But really, just about any company sending employees abroad should seriously consider obtaining this coverage.
• What it covers: Kidnap and ransom, war risk and terrorism, AD&D, medical evacuation, and life insurance in hazardous environments. Also, war and terrorism risk, security, evacuation, detention, and much more.
• What it excludes: General liability insurance, political risk insurance, and property insurance are not provided, but like any insurance policy there are other restrictions and exclusions.
• Key differentiator: Direct access to Lloyd’s of London underwriters through our parent company’s status as an appointed agent for personal accident and war risk, but through our UK brokerage source for most special risk coverage on a referral basis with our oversight and assistance where required.

What’s Covered Under Special Risk Insurance Plans

Our special risk plans are built around five core coverage types:

• Kidnap & Ransom (K&R) insurance – covers ransom payments, negotiation consultant fees, and related costs if an insured person is kidnapped. Note that ransoms are paid by the employer and then reimbursed by the insurer.
• Accidental Death & Dismemberment (AD&D) coverage – pays a benefit if an employee is killed or seriously injured, including in conflict-related incidents.
• Global medical insurance for expatriates – covers treatment costs while stationed in countries where local healthcare infrastructure may be limited or unreliable. Generally such coverage is only a small portion of a special risk policy, but we can source more comprehensive global healthcare coverage for your international employees.
• International business travel coverage – protects employees on short-term assignments into or through high-risk territories. Note that this is often a separate policy for most organizations.
• Special risk life insurance – life coverage underwritten specifically for individuals in elevated-risk occupations or locations, which standard life insurers typically decline.

These plans are most often used by employers sending staff into hazardous environments rather than by individual travelers purchasing coverage on their own. Please note that coverage and policies vary widely, and you should read your plan terms and conditions very carefully and talk to a specialist to discuss your requirements. The above points are for informative purposes and not for the purpose of providing you with advice or support.