Do you have business activities in high risk countries? Does your employees travel to countries where kidnapping and ransom incidents are common?
K&R insurance protects corporations and individuals against financial losses that result from kidnapping, extortion, and ransom demands. Although these policies are often complicated and sometimes expensive, they are an absolute necessity for employees or high-net-worth individuals traveling to areas where the kidnapping risk is high.
Who needs coverage?
Kidnap and ransom coverage is often provided as part of a corporate insurance portfolio. Companies often use it when they have employees who frequently travel to areas where kidnapping is a problem. K&R insurance can include coverage for spouses, relatives, guests, nannies, housekeepers, or just a single individual.
Individuals can also purchase K&R insurance as a stand-alone policy. However, most individuals who buy it are affluent or high-profile because of the cost of these policies. Celebrities, famous musicians, sports stars, and politicians are more likely to have kidnap and ransom insurance.
Insured Events Include;
- Kidnap
- Extortion
- Hijack
- Wrongful Detention
- Cyber Extortion
- Threat Event
- Disappearance
- Express Kidnap
- Hostage Crisis
- Child Abduction
- Workplace Assault
How the K&R Insurance Works?
In most kidnapping scenarios, the perpetrators demand that the victims avoid notifying other parties. That can be quite challenging, leading to complications when the employer or family needs to contact the insurance company. For this reason, many K&R policies include a specific notification provision. It says that the policyholder, employer, or family should notify the insurer and the police about a kidnapping only when it is safe to do so.
Once contacted, the insurer immediately swings into action, deploying specialists to assist in the release of the kidnapped individual. This assistance includes negotiations with the kidnappers, delivery of a ransom, evacuation, and appropriate care.
However, a ransom is not paid out directly by the insurer. Instead, the employer or family has to pay it out of pocket or take out a loan. Note that most K&R policies cover the interest on money borrowed for this purpose. Once the crisis is over, the insurer will reimburse the policyholder for the ransom and related expenses. If total costs go beyond a specific limit, the policyholder is responsible for covering the extra costs.
Do you have what is takes to secure your employees & business?
