Kidnap and Ransom Insurance

Most large and small business owners alike never dream that someone in their company could be a victim of kidnapping. The numbers speak for themselves, though, and with more than 1,000 kidnappings of professionals worldwide each year, it becomes apparent why Kidnap and Ransom insurance should be a consideration for any business.
Kidnap and Ransom insurance provides protection to small business owners by covering such areas as kidnapping, extortion, hijacking and wrongful detention of employees. If your company operates in a high-risk area of the world or has executives who travel regularly to volatile regions, this type of coverage should definitely be taken into account. Some high-risk areas include Mexico, Haiti, Columbia and parts of Eastern Europe and the Russian Federation.


Basic K&R insurance policies cover areas such as reimbursement for payment of a ransom, income lost and any medical or psychiatric care required by the individuals involved as well as their families. They can also be written to cover personal losses due to accident such as a resulting disability, dismemberment and death.


Companies faced with a situation involving kidnapping or extortion that are not properly insured often find themselves in a state of confusion and unable to provide the proper resources to individuals, staff and family members. Many providers of Kidnap and Ransom insurance are set up to provide immediate access to needed consultants and crisis management professionals who will help companies minimize the overall impact to human capital and operations. Alongside immediate access, K&R insurance providers typically provide proactive elements to their policies such as training for employees that will minimize the potential for kidnappings.


Small business owners should not be alarmed about the cost of Kidnap and Ransom insurance, as these policies are typically provided at a fraction of the cost when compared to other forms insurance, such as health. Many experts will suggest blanket coverage for all employees instead of trying to identify those most at risk. While some areas of the world appear more at-risk than others, the reality for small business owners is that these activities can occur anywhere with little discrimination.


As companies continue to find that globalization is a necessity for survival in the current marketplace, the need for Kidnap and Ransom insurance will only rise. Incorporating provisions for kidnap and ransom into an overall crisis management strategy should be consideration for all employers.