The recent escalation of pirate attacks, increase in the size of ransom demands and the associated expenses involved in the negotiation and delivery of these payments have meant that both Hull and P&I underwriters are increasingly reluctant to confirm coverage and therefore assist in negotiations.

It is due to this uncertainty that leading kidnap and ransom insurers have developed specific maritime kidnap policies, designed to respond on a primary basis and to cover,
inter alia:

• Fees and expenses of crisis response consultants

• Ransom and loss of ransom in transit

• Additional expenses including costs incurred in transporting the ransom to the pirates

Additional protection is also available to cover:

• Extortion demands made against vessel and/or cargo

• Loss of Hire of vessel due to piracy incident
SCR will advise on the insurance options available, clarify the roles of the parties involved in handling an incident and ensure that the financial protection and response services are co-ordinated and aligned.