Kidnap and Ransom Insurance: Who Needs It and What Is Covered

February 27, 2020
A kidnapping attempt of a business person

Unfortunately, kidnap & ransom (K&R) scenarios are a real-world possibility for many high-profile executives and individuals traveling abroad.

Our Agency Partners make K&R insurance policies available to companies and individuals in order to help cover the costs related to kidnapping, ransom, extortion, detainment, and other crisis situations. They also include coverage for additional services related to the crisis scenario, including compensation and support for medical/psychiatric care or legal difficulties that may arise.

Who Typically Needs to Have K&R Insurance?

Most average individuals are not at high enough risk to justify purchasing K&R insurance. The most commonly targeted individuals include high-net worth and high-profile executives, celebrities, strategic decision makers, and people with ties to them, including family members and employees. Missionaries, volunteers, and reporters working in volatile areas may also be targets as a result of political and public reactions surrounding their capture.

What is covered by a kidnap and ransom insurance policy typically?

Coverage under K&R insurance policies cannot prevent an abduction or pay ransom directly. Instead, they include indemnity clauses that reimburse companies for the costs they pay related to kidnapping, extortion, or detainment. Common reimbursement claims include:

  • Ransom paid or lost as a result of kidnapping,
  • Money lost due to destruction, theft, or confiscation in delivery or transit,
  • Accidental death or injury sustained during a kidnapping as well as medical and psychiatric care,
  • Liability judgments brought against victims,
  • Severe disruption of business operations and damage to company brand, and
  • Salary replacement, relocation, and job retraining.

Many K&R insurance policies also include provisions for crisis management consultants who advise on incident response or prevention and reaction training for insured individuals.

Some locations and circumstances are more susceptible to kidnapping occurrences.

K&R insurance is typically for individuals or employees who travel frequently or for long periods of time to an area where kidnapping and extortion crimes are known to occur. Kidnap and ransom insurance policies are generally written to cover specific trips. Premiums and coverage are based on different individual factors including the insured person’s country of residence, the country or region to which they are traveling, length of travel, expected revenue, and industry.

Countries that are commonly named in K&R policies include: Mexico, Venezuela, certain other countries in Latin America, Haiti, Nigeria, certain countries in Eastern Europe, and certain countries in Central Asia, particularly Afghanistan and Iraq, are commonly named in kidnap and ransom insurance policies.

The U.S. Department of State maintains a list of travel advisories worldwide which specifically highlights dangerous regions.

Advice from Trusted Partners

If you think you, your family, or your organization may be a potential target of kidnapping and ransom, extortion, detainment, or another related crisis situation, contact us for a risk evaluation. Advisors at Acrisure’s Agency Partners have access to extensive kidnap and ransom insurance and other personal lines insurance and commercial insurance offerings and solutions, and can help you find a policy that fits your needs to help provide peace of mind for yourself, your family, and your employees.


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