A  Kidnap and Ransom policy is a necessity for organizations and individuals worldwide, and provides protection against a variety of security risks including threats and extortions against people, property and propriety information.

Many organizations lack the resources and personnel to quickly and professionally respond to threatening situations. 

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K&R Insurance policies typically cover the perils of kidnap, extortion, wrongful detention, and hijacking.

K&R policies are indemnity policies – they reimburse a loss incurred by the insured. The policies do not pay ransoms on the behalf of the insured.

Typically, the insured must first pay the ransom, thus incurring the loss, and then seek reimbursement under the policy.

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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.

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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.