Kidnapping is a real threat that can happen to any business. This illegal act often targets wealthy U.S. companies and business travelers. Even if a ransom demand isn’t part of the kidnapping, it’s a stressful situation that can create unexpected costs and substantially impact a business’s bottom line.
What Is Kidnap and Ransom Insurance?
Kidnap and ransom (K&R) insurance is designed for those who travel to potentially high-risk regions of the world. K&R insurance is typically stand-alone insurance that can help protect your business from the financial impact of unexpected expenses related to kidnapping, extortion and ransom or illegal confinement. K&R coverage usually can pay money to kidnappers or extortionists, loss of ransom in transit, and other expenses suffered as a result of a kidnapping.
A typical K&R insurance policy may cover costs that include:
- Extortion—Demanding money with the threat to injure or kill an individual, damage property or divulge trade secrets.
- Hijacking—Holding an individual for some time against their will on an airplane, motor vehicle or ship.
- Kidnapping and ransom—Seizing an individual intending to demand money for the individual’s safe return.
- Wrongful detention—Confining an individual against their will for reasons other than kidnapping, often by a government or quasi-government entity.
Who Can Benefit From K&R Insurance?
Businesses that operate or send employees to high-risk areas may want to consider this niche coverage. A K&R policy may benefit financial institutions, nonprofit organizations, and private and public companies. Generally, if you risk sending an employee or team to a particular part of the world, you may want to have this critical protection.
Get Your K&R Policy Today
K&R insurance can save your business from substantial out-of-pocket costs if a kidnapper or extortionist tries to demand money from your company. Get the optimized protection you need to keep your employees safe. Contact Elite Insurance Group today to get started with coverage.