Kidnap and Ransom Insurance

We offer kidnap and ransom insurance to public, private, and nonprofit organizations. Kidnap and ransom insurance is typically purchased by organizations that have employees in foreign countries and provides protection to an organization if an employee becomes a victim of kidnap or extortion. This type of insurance is different from other management liability coverages as it indemnifies, rather than pays on behalf of, the insured. This means that the insured must pay the ransom money and expenses out of pocket before asking the insurance company for reimbursement. Also, in the case of a kidnap and ransom event, the insured is typically not allowed to disclose the existence of an insurance policy to the victim or kidnapper.

What coverages are available under a kidnap and ransom insurance policy?

The coverages that are usually available under a K&R policy include the following:

• Kidnap for ransom
• Extortion for ransom
• Detention and hijack
• Loss of ransom monies during transit or delivery
• Rest and rehabilitation expenses after release
• Dismemberment, disability or death
• Related expenses

The coverages other than kidnap for ransom are usually available on an optional basis.

What rating factors are used to determine the kidnap and ransom insurance premium?

Insurance companies typically rely on various rating factors in determining the kidnap and ransom premium for an insured, such as the following:

• Policy limit and deductible
• Number of employees
• Gross revenue
• Industry
• Location
• Financial condition
• Claims history

Other rating factors may be used as insurance companies are free to set their own rating plan.