Senior Professional in Human Resources (SPHR) Certification Practice Exam

What type of insurance may be necessary for employees on international assignments?

1. Life insurance exclusively

2. Kidnap and ransom insurance

3. Standard health insurance only

4. Universal coverage

The correct answer is: Kidnap and ransom insurance

When employees are sent on international assignments, they may face unique risks that differ from those encountered in their home country. Kidnap and ransom insurance is specifically designed to protect employees in environments where the risk of kidnapping is higher, which can be prevalent in certain regions. This coverage is important for organizations to consider when deploying employees abroad, as it can provide financial and logistical support in the event of a kidnapping, such as negotiating with kidnappers, covering ransom payments, and ensuring the safety of the employee. While life insurance and standard health insurance are important components of an employee's overall benefits package, they may not fully address the specific risks associated with international assignments. Standard health insurance often does not provide adequate coverage in foreign countries, especially in areas lacking proper medical facilities. Universal coverage suggests a broader access to healthcare, but it may not sufficiently respond to situational threats like kidnapping. In contrast, kidnap and ransom insurance directly caters to the security needs of expatriates in volatile environments, making it a critical component of a comprehensive insurance strategy for international assignments.