Kidnap and Ransom Insurance

Kidnap and Ransom Insurance. Yes, It Exists.

We live in a global economy, and many companies do business in areas that may be considered high-risk. And while it may seem like the plot of a Hollywood movie, many employers have to consider the possibility of the kidnap and ransom of their employees. So yes, Kidnap and Ransom insurance policies exist.

Kidnap, ransom and extortion insurance policies protect individuals and corporations against losses in high-risk areas of the world. There are the conflicts in Syria, Iraq and Afghanistan, and the hijacking of ships in Somalia, as well as the dangers in some parts of Mexico and Columbia (drug cartels), Eastern Europe, Pakistan, Nigeria and some areas of Russia.

Unfortunately, the risks are not minimal. According to reports in Australia, kidnapping cases are thought to total 20,000 to 30,000 annually, though many are unreported due to powerless police and/or corrupt authorities.

What Is A Kidnapping & Ransom Insurance Policy Exactly?

K&R policies do not pay ransoms on behalf of the insured party, but rather are used for reimbursement once the ransom has already been paid. These reimbursements can include the ransom money itself, legal liability of company management, expenses such as medical care, relocation and public relations, and as gruesome as it sounds, death or dismemberment.

Usually employees are unaware of these insurance policies, as to not induce fraudulent activity, as criminal gangs are known to profit millions of dollars from K&R claim payouts. In some cases, if an employee knows there is a K&R policy in force, coverage could be voided. It should also be noted that most kidnappings do not usually end with death, they usually end with a negotiated ransom. Quick kidnappings are also on the rise, with smaller ransom demands and shorter holding times.

How To Get A K&R Insurance Policy

K&R policies are specialized insurance, and not many insurers provide this coverage. KTX Insurance Brokers have access to Lloyd’s of London syndicates that provide K&R coverage, and coverage can be obtained with a full corporate insurance package, or on individual employees. In addition, K&R insurance policies also come with extra services and support to help control kidnappings proactively, to minimize losses, lower premiums, and keep your employees safer in what can be at times an unsafe world.


James Mior

James Mior

COMMERCIAL LINES MANAGER - James has managed the Commercial Lines department at KTX Insurance Brokers since February 2014, including Commercial Property/Liability, Commercial Auto/Fleet, and Commercial Customer Service. James obtained his RIBO licence in 2002, and has spent his entire career in Commercial Lines. Along with managing the commercial team, he also writes new business with standard Canadian insurers, as well as managing agents and Lloyd’s of London. He developed and still manages a successful I.T. insurance program, and has successfully placed coverage for thousands of clients in retail, general contracting, real estate, professional services, and errors & omissions for consultants. Unlike traditional brick-and-mortar brokerages, James leverages the technology of Kanetix to provide instant online insurance quotes for many business owners.

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