Many American companies, particularly multinational companies with large work forces and sizable revenues, are beginning to realize that they are attractive targets for terrorists seeking to extort large amounts of money to support their activities. Some companies are purchasing kidnap, ransom, and extortion insurance to protect themselves from crippling financial losses that may have to be incurred for the return of hostage employees. This special type of insurance emerged in the 1970's, largely as a result of the dramatic upsurge in domestic extortion demands on banks, airlines, and other companies, as well as a rash of kidnappings in Argentina. A standard corporate kidnap and ransom/extortion policy from the American International Group covers kidnapping or alleged kidnapping, loss of ransom while it is in transit, extortion; threatening bodily injury, extortion threatening property damage, reward payments, miscellaneous expenses, loss of corporate and personal assets, product recall expenses, government detention, expenses incurred due to business interruption, accidental death and dismemberment, and consequential property loss due to extortion. Premium rates are determined by various factors found to correlate with a company's vulnerability to terrorist extortion. Which companies carry such insurance is a closely guarded secret, since terrorists may deem these companies more able and willing to meet huge extortion demands. A table shows the number of 1980 terrorist incidents by geographic area and type.