Kidnap and Ransom Insurance

Kidnap and ransom insurance or K&R insurance is designed to protect individuals and corporations operating in high-risk areas around the world.

Losses typically reimbursed by K&R insurance include:

Ransom monies – Money paid or lost due to kidnapping

Transit/delivery – Loss due to destruction, disappearance, confiscation, or wrongful appropriation of ransom monies being delivered to a covered kidnapping or extortion

Accidental death or dismemberment – Death or permanent physical disablement occurring during a kidnapping

Judgements and legal liability – Cost resulting from any claim or suit brought by any insured person against the insured

Additional expenses – Medical care, severe disruption of operations, potential damage to company brand, PR counsel, wage and salary replacement, relocation and job retraining, and other expenses related to a kidnapping incident.

The policies also typically pay for the fees and expenses of crisis management consultants. These consultants provide advice to the insured on how to best respond to the incident. Even the most basic training for people traveling to dangerous places is not easily provided or is not obtained by small to mid-sized companies.

Koru Korner

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