Kidnap & Ransom

When thinking about insurance, the last thing you might expect to need is coverage for kidnapping and ransom payments. While it might be shocking, kidnapping crimes are actually on the rise, as are their correlating ransom payouts. For those folks who are famous, wealthy, or otherwise just kind of a big deal, it might be a good idea to look into getting kidnap and ransom insurance.

What Is Kidnap and Ransom Insurance?

Kidnap and ransom insurance is a type of coverage designed to protect against the financial harm suffered in the event of a kidnapping. Coverage provides reimbursements for things like ransom fees, medical fees, lost wages, and for professional help in solving the crime and getting the victim home again. Kidnap and ransom insurance might even pay out a benefit if the victim is killed.

The following individuals might need kidnap and ransom insurance:

  • Celebrities
  • Other famous/notorious individuals
  • The extremely wealthy
  • High-profile employees such as executives
  • International travelers

High-profile and/or high net worth individuals, who might have something to offer a kidnapper, are at a much higher risk of being targeted than your Average Joe. Those who frequently travel to high-risk countries for business purposes are perhaps most in danger of being abducted. If you fall into one of the above categories, you might want to seriously consider getting coverage.

How Much Does Kidnap and Ransom Insurance Cost?

Well, that depends on quite a few things. For an individual purchasing coverage for themselves, premium costs might only be $500 annually if they’re not among the more high-risk categories. However, employers purchasing $5 million coverage for high-profile employees that frequently travel to risky countries might pay closer to $2,000+/year.

Coverage costs depend on a number of factors, like:

  • Who purchases the coverage (i.e., a business or an individual)
  • The amount of coverage needed
  • The risk level of the individual(s) being insured
  • The insured’s profession
  • The insured’s fame/notoriety level
  • The destinations the insured travel(s) to
  • The insured’s home location

Basically, as with any other type of insurance, the more of a risk someone is to insure, the higher the premium they’ll have to pay. For those folks who may be at risk of being targeted, higher coverage limits could be worth the extra expense paid in the premium.

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What Does It Cover?

Coverage will pay reimbursements up to a specified limit, dictated by your policy, towards a ransom payment demanded by the criminal to get the victim released to safety. Typically, a victim’s family will first either have to pay the ransom out of pocket or take out a loan to cover the fee, rather than the insurance company providing the money up front.

 If a victim suffers physical injury during the kidnapping, kidnap and ransom insurance will reimburse them for medical fees. Coverage also applies to costs of psychiatric help, such as if the victim should require therapy after the traumatic incident.

If the victim’s family becomes physically injured or traumatized during the kidnapping, coverage will reimburse for medical fees including therapy costs and psychiatric care.

Crisis management teams who are responsible for solving kidnapping crimes may be called on for assistance during an incident. Crisis management teams handle things like hostage negotiations, conducting investigative research to figure out the criminal’s identity, and the development of a strategy to bring the victim home as quickly and safely as possible. These professionals may also cooperate with authorities.

Kidnap and ransom insurance provides coverage for all aspects of the crime up until it’s fully solved, or the point at which the victim returns home safely. Transportation and other costs associated with bringing the victim home are covered.

Any loss of salary the victim suffers while being out of work may be reimbursed by kidnap and ransom coverage.

In certain kidnap and ransom insurance policies, there may be coverage offered if the victim is killed. A death benefit may be paid out to the victim’s family in the event of the worst-case scenario, but this doesn’t apply to all policies.

If necessary (and depending on the policy), kidnap and ransom insurance may provide coverage for keeping news media quiet about the incident in order to protect the safety and privacy of the individual or their employer.

When an employer purchases a kidnap and ransom policy, it typically includes coverage for fees resulting from lawsuits the victimized employee may file, should their business trip turn into a scene from Taken.

- Kidnap & Ransom Insurance -

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