Kidnap and Ransom Insurance
Specialty coverage that reimburses ransom payments and pays for crisis response experts when an employee or family member is kidnapped or extorted.
Overview
K and R policies are bought mainly by multinational companies with staff in high risk regions, by shipping firms facing piracy, and by wealthy families. Beyond reimbursing ransom, they cover the cost of specialist crisis response consultants, who advise on negotiation and safe recovery, along with travel, medical, and lost income costs. The Lloyd's market is a major center for this business. Policies are usually kept confidential, because knowledge of coverage could make the insured a more attractive target. Coverage cannot lawfully fund payments to designated terrorist groups in many jurisdictions, including under United Kingdom and United States law, and policies are structured as reimbursement after a lawful payment.
Related Topics
Cyber Insurance
Policies cover breach response costs, forensics, notification, credit monitoring, legal defense, regulatory fines where insurable,...
Workers Compensation
In exchange for giving up the right to sue the employer, employees receive medical care, indemnity payments, and disability benefi...
Business Interruption Insurance
Sold inside commercial property policies rather than alone, it pays for the restoration period plus extra expense to keep operatin...
Key Person Insurance
The company owns the policy, pays premiums that are typically not deductible, and receives death benefits that are generally incom...