What it does
CR 00 40 is ISO's kidnap/ransom and extortion coverage form for a package policy (declarations CR DS 06). It responds to ransom paid and related loss when a person is kidnapped or when someone threatens to harm people or property and demands payment. Ordinary crime forms exclude ransom and extortion payments, so this exposure needs its own form. The ISO kidnap/ransom forms were not part of the 06 22 crime revision; the 08 13 edition remains current.
Who needs it
Companies whose owners, executives or employees travel to or work in higher-risk countries, high-profile individuals and families of business owners, and businesses exposed to product-tampering or property-damage extortion threats.
Key provisions
Limits are scheduled for the kidnap/ransom and extortion exposures. ISO offers companion endorsements CR 45 01 to CR 45 04 for policy changes, death and dismemberment, products recall expenses, and business income and extra expense following an insured event.
Quoting and selling notes
- Ask about international travel and operations, the individuals to be protected, and any prior threats.
- Remind the insured that its crime policy excludes ransom and extortion payments (including cyber extortion), so this exposure is uninsured unless a K&R form or the CR 04 03/CR 04 04 extortion endorsement is added.
Related forms
CR 00 40 (coverage form), CR 00 41 (policy), CR DS 06, CR DS 07, CR 04 03 (extortion for commercial entities under a crime form).
