What Companies Sell Kidnap And Ransom Insurance In Dubai? (Correct answer)

  • Some companies who offer K R insurance include Aon, AIG, Aurora, Chubb, Hunter McCorquodale, Ingle International, Lloyds and RSA. How can an advisor sell a K R policy? Hunter McCorquodale has worked with financial planners since 2011 due to growing demand in the financial planning space.

How much does kidnap insurance cost?

Some policies cost as little as $500 a year, but the price rises quickly. It depends on the type of coverage, benefit amounts, destination countries, and the number of people covered. The cost might be roughly $2,000 for a $5 million policy that covers a year of nonhazardous travel.

Is kidnap insurance real?

Kidnap & Ransom insurance policies provide coverage typically for monies paid to kidnappers or extortionists, loss of ransom in transit and other expenses incurred as a result of a kidnapping. These threats are very real and can happen to any business.

Do Americans have ransom insurance?

Kidnap, Ransom & Extortion Insurance provides protection against security risks for individuals and a variety of organizations domestically in the United States and around the world.

Can you buy insurance for ransomware?

Ransomware insurance is a type of cyber insurance coverage that can cover financial losses, including ransom fees and business interruption costs, stemming from a ransomware attack.

What is AD & O policy?

Directors & Officers (D&O) Liability insurance is designed to protect the people who serve as directors or officers of a company from personal losses if they are sued by the organization’s employees, vendors, customers or other parties.

What type of insurance is kidnap and ransom?

Special Crime Insurance A type of insurance that covers losses arising from the kidnap and holding for ransom of a corporate employee or from the threat to do harm to a person or to certain property if a ransom is not paid. Accordingly, special crime policies are also termed “kidnap, ransom, and extortion” insurance.

How long has cyber insurance been around?

In the Beginning In the 1990s, the earliest form of cyber liability insurance generally included polices that covered online media or errors in data processing. During this time, policies typically excluded first-party coverage and had exemptions for rogue employees, regulatory claims, and fines and penalties.

How do kidnappers get their ransom money?

Typically, a gang of two or three people will grab their target and force them to extract money from the cash machine under threat of violence. In some cases, the victim is driven to a nearby location and either made to hand over money directly or held hostage until a ransom is paid by their family.

What does cyber insurance cover?

Cyber insurance generally covers your business’ liability for a data breach involving sensitive customer information, such as Social Security numbers, credit card numbers, account numbers, driver’s license numbers and health records.

Is ransom an extortion?

As nouns the difference between extortion and ransom is that extortion is the practice of extorting money or other property by the use of force or threats while ransom is money paid for the freeing of a hostage.

What is a tiger kidnapping?

Tiger kidnap involves the short-term hostage taking of family members of someone who has immediate access to cash or valuables.

What is cyber extortion insurance?

Cyberextortion Coverage — an insuring agreement contained within some policies written to cover claims associated with data breaches. Such policies are most often termed “cyber and privacy insurance,” “information security and privacy insurance,” and “cybersecurity insurance.”

Should ransomware be reported?

Regardless of the size of your organization, ransom amount requested, extent of the damage or the chosen method of ransomware recovery, you should always report a ransomware attack to law enforcement.

What is computer ransomware?

Ransomware is malware that employs encryption to hold a victim’s information at ransom. A ransom is then demanded to provide access. Ransomware is often designed to spread across a network and target database and file servers, and can thus quickly paralyze an entire organization.

Security Risks

For kidnapping, ransom, extortion, and other crisis events such as cyber extortion, product extortion, hijack, unlawful imprisonment, threat, and disappearance, AXA XL provides complete insurance coverage. Other coverage includes hostage crisis, child abduction, assault, and workplace violence. S-RM, a leading provider of skilled crisis response specialists, is retained solely by AXA XL. Policyholders have access to crisis response services that include pre-event, real-time, and post-event services.

Incidents such as kidnapping are difficult to forecast, and when they occur, they need a rapid, planned, and experienced response on the part of those on the scene.

For clients seeking assistance in managing their risk environment, we provide specific knowledge as well as a broad selection of insurance coverages.

The KidnapRansom insurance coverage offered by AXA XL is designed to alleviate this burden by reimbursing all connected expenditures paid both during and after the occurrence is reported.

Risk Consulting

Risk consultants that provide complete risk management solutions that are based on an understanding of the client’s business aims and objectives Read on to find out more


As part of our effort to provide the most comprehensive coverage available on the market, we have included the following occurrences in our core policy wording:

  • Threats, disappearances, kidnappings, hostage crises, kidnappings of children, assaults, cyber extortion, and product extortion are all possibilities.

The following insurance coverages can also be added on as add-ons to your existing insurance policy:

  • Stalking threat
  • Tiger kidnapping. Company interruption
  • Cyber-extortion business interruption. Emergency security evacuation. Product recall expenditures.

We compensate the insured for any and all expenditures that were legitimately incurred in connection with a valid claim. Help from a trained professional is particularly essential when dealing with a high-pressure, stressful circumstance such as the kidnapping of a colleague or loved one. It may be quite beneficial to have immediate access to impartial, experienced consultants who can assist you at such a difficult time, and this is frequently the main cause for the purchase of a KidnapRansom insurance policy.

Benefits and Services

  • We compensate the insured for any and all expenditures that were properly expended in connection with a legitimate claim on our behalf. When dealing with a high-pressure, high-stress circumstance such as the kidnapping of a colleague or a loved one, professional aid is essential. Being able to get immediate assistance from independent, experienced consultants may be quite beneficial in such situations, and it is typically what motivates people to get a Kidnap/Ransom insurance policy in the first place.

Client Profiles

A target for kidnapping and ransom events does not have to be a millionaire or a foreigner working in a war zone in order to be a victim of such events. Organizations or people may be exposed to risk due to their travel exposures, the location of their permanent operations, the nature of their specialized business, or the public profile that they maintain. AXA XL provides international kidnap and ransom coverage to businesses of all sizes. Some industries, such as the following, are more at danger than others because to the nature of their company and the places where they tend to work.

  • Aviation, construction, engineering, finance, high-net-worth people, humanitarian and help groups, maritime, media and journalists, mining, oil and gas, security, and telecommunications are just a few of the industries represented.

Kidnap & Ransom Insurance

Kidnap and ransom insurance is frequently purchased by firms that operate in high-risk locations, individuals who plan to travel through potentially hazardous nations, and high-profile persons who may be at risk anywhere in the world, among other reasons.

We offer a full range of cover, including:

  • Extortion, bodily injury, illegal detention, legal liability, business interruption, protection of assets from illegal demands, threat response, disappearance investigation, emergency political repatriation and relocation, hijacking, hostage crisis, loss of ransom in transit, piratery, child abduction, cyber attack, loss of earnings, and more.
A real risk for international business people and high profile individuals

Extortion, bodily injury, illegal detention, legal liability, business interruption, protection of assets from illegal demands, threat response, disappearance investigation, emergency political repatriation and relocation, hijack, hostage crisis, loss of ransom in transit, piratery, child abduction, cyber attack, loss of earnings

Kidnap and Ransom Insurance in Dubai

Extortion, bodily injury, illegal detention, legal liability, business interruption, protection of assets from illegal demands, threat response, disappearance investigation, emergency political repatriation and relocation, hijack, hostage crisis, loss of ransom in transit, piratery, child abduction, cyber attack, loss of earnings;

  • Iraq, Afghanistan, Pakistan, Yemen)
  • Sub-Saharan Africa
  • South America
  • Areas experiencing political or social upheaval

Typical Kidnap and Ransom insurance coverage might include the following:

  • Crisis management expenses
  • Legal liability
  • Kidnapping / hijacking
  • Payment of ransom following abduction or any other connected threat
  • Injury or death
  • And other issues.

Tremendous risk can sometimes be accompanied with high gain. Many areas across the world offer some fantastic opportunities, but they also come with a number of risky and distressing concerns to consider.

Kidnap/Ransom & Extortion Insurance

Organizations with worldwide operations require the protection of a seasoned professional in today’s increasingly dangerous global environment. Using an unrivaled mix of insurance and crisis management skills, we provide protection to business travelers and their families all over the world. Any firm may become a target for kidnappers or extortionists, especially if its staff go overseas on a regular basis. More publicly traded firms are understanding the necessity of controlling these risks with insurance and particular crisis management services, such as those provided by Chubb & Company.

Product highlights

Organizations with worldwide operations need the protection of a seasoned professional in an increasingly dangerous environment. By combining an unmatched combination of insurance and crisis management skills, we safeguard business travelers and their families all over the world. Any firm, especially one that has personnel who go abroad, might become a target for kidnappers or extortionists. An increasing number of publicly traded corporations are understanding the need of controlling these risks with insurance and customized crisis management services like those provided by Chubb.

Benefits include

  • Comprehensive protection against threats such as abduction, ransom, extortion, and other extortion against your employees or property
  • The availability of good risk management methods and protocols, as well as professional guidance
  • The experience of Chubb in the areas of kidnap/ransom and extortion insurance

Kidnap for Ransom and Extortion Solutions

Every year, between 15,000 to 20,000 kidnappings are recorded throughout the world, with many more remaining undetected. Apart from the psychological agony of being kidnapped, it can also result in large financial losses due to ransom payments, related expenditures, company interruptions, lawsuits, unfavorable public relations, and long-term reputational harm. We provide kidnap for ransom and extortion insurance policies from a diverse selection of insurers, allowing you to choose the best pricing, coverage, and response specialists for your specific needs.


It is the responsibility of Aon to give security guidelines that will limit your exposure to attack. We also provide resilience assessments for top executives, as well as extensive and individualized training for workers who go to high-risk places.

Financial protection

The costs of the following items are covered under Aon’s proprietary insurance policy:

  • Ransom
  • Loss of ransom in transportation
  • Legal expenses and other expenditures related with the ransom demand
  • In addition to the fees and expenditures of professional response specialists (which are limitless),

Besides political repatriation, we also provide tailored coverage for loss of wages, express kidnapping, child abduction, hostage crisis, tiger kidnapping and disappearance, as well as expenditures related with malicious threats.


When an event occurs, Aon’s policies give cash compensation as well as quick access to specialized response consultants who provide guidance and assistance to your crisis management team and the victim’s family throughout the investigation and recovery process. Please contact us if you would like more information about Aon’s kidnap and ransom insurance. GBCCM0037 is the FP number.

Kidnap & Ransom

Unlike what one might assume, hostile situations such as kidnappings and ransom events are more prevalent than one might expect, and they have the potential to be extremely devastating to both the persons involved and the organizations with which they may be linked. Certain organizations, such as the following, are more exposed to hostile acts than the typical citizen:

  • Employees and contractors of multinational corporations, especially those operating in rural or low-resource locations
  • Employees and contractors of multinational corporations • Employees who work in (or those who go to) locations that are afflicted by political instability and social hardship
  • Employees of domestically based firms that go worldwide on a regular basis
  • Individuals and families with significant financial resources, including celebrities

Workers who travel to locations characterized by political instability or socioeconomic distress may find themselves in potentially perilous circumstances, such as encounters with organized crime organizations, extortionists and kidnappers, and even terrorist organizations. The psychological damage connected with hostile encounters is quite genuine for individuals who have been directly affected. Such instances can result in catastrophic financial losses, the destruction of a company’s or individual’s image, and, in the worst cases, the death of the victim.

Pirates, kidnappings, and ransom: The business of K&R indemnity policies

Consider the possibility that your employment entails negotiating with multinational criminal groups, or at the absolute least, aiding others who do so on your behalf. No, you are not a member of a mercenary military group, nor are you involved in illicit arms and drug trafficking; instead, you work in the insurance industry. Although it appears to be the beginning of a movie, it is really a very real section of the insurance industry that generates hundreds of millions of dollars in premiums each year in the United States.

  1. As a result of the current world’s rapid globalization and technical advancements, kidnap and ransom insurance (K R) has become a virtual need for big participants in every sector, as well as an important business opportunity for insurers and their clients.
  2. It remained a specialized sort of coverage, focusing on celebrities and their families, and was practically unknown in the United States until the kidnapping of Patty Hearst, which occurred in 1974.
  3. Today, however, huge corporations with a considerable international presence are the most common customers of this insurance coverage.
  4. As insurance plans have changed through time, they have moved away from insuring specific individuals to covering specific categories of people (such as family members, workers, employers, and so on) associated with a covered individual.
  5. Internationally renowned Lloyd’s of London, which has built an excellent reputation for concentrating on just this type of specialised insurance, has had a long history of issuing kidnap and ransom coverage.
  6. The usual K R policy provides coverage for four key perils: abduction, extortion, imprisonment, and hijacking.
  7. It is also possible to have overlapping coverage in the situation of piracy at sea, when typical marine insurance may cover the cost of the ransom, but it will not cover the (usually very large) expenditures associated with the crisis management process.

There are many different types of losses that can occur, and they include (but are not limited to): ransom payments, loss of ransom in transit, medical expenses for the victim, psychiatric expenses, reward payments, asset protection, funeral costs, child care costs, business interruption costs, and, perhaps most importantly, the fees and expenses of crisis management consultants.

  • These experts give guidance to the insured’s family or workplace on how to respond to an occurrence as effectively as possible.
  • How can you force the kidnapper to verify that they have your employee in their possession?
  • What method should you use to deliver the ransom?
  • Crisis managers have amassed a plethora of specialized information regarding economic kidnappings throughout the course of their careers.
  • Several of these companies have a business tie with kidnappers.
  • Typical rules do not place a limit on the amount of money that may be spent on crisis management teams.
  • Key personnel insurance policies are usually obtained by businesses to protect their employees when they travel to risky regions of the world.
  • The possibility of coordination between kidnappers and potential victims exists in severe instances.
  • He or she would choose to collaborate with kidnappers in exchange for a percentage of the payment.
  • A number of clear ethical concerns arise as a result of this scenario, as well as some unexpected adverse selection questions.

It is possible to distinguish between the potential moral hazard inherent in a K R policy and the increased “riskiness” of doing business as a result of globalization, population growth, and global financial unrest, despite the fact that evidence suggests that the number of kidnappings has increased dramatically over the last 20 years, particularly since 9/11.

  1. She was afraid that the availability of the coverage would encourage policyholders to pay ransom and would allow them to be less careful about the amount of ransom they were willing to pay in the future.
  2. Another issue that might arise as a result of the availability of this coverage is whether or not the victim’s employer will even notify the insurance company about the incident.
  3. Companies must strike a balance between this demand and the necessity to alert the appropriate authorities or insurance provider.
  4. The possibility of negotiating with, and perhaps making money to, kidnappers is also discussed in the introduction as a potential ethical problem.
  5. The importance of remembering that dealing with terrorists is not encouraged cannot be overstated.
  6. Because of the low frequency of losses, typical K R policies are not only reasonably priced (as compared to directors and officers coverage), but they are also extremely profitable.
  7. K R policies are underwritten in the same way that any other form of insurance policy is underwritten.
  8. Depending on the firm, underwriting factors may include the kind of its business, its total income, the number of workers, the company’s travel habits and international locations of personnel, as well as the company’s historical loss history.
  9. Kidnapping is reported to be a $500 million a year criminal enterprise (as of 2010), with a huge amount of the revenue coming from K R payments, the majority of which is sponsored by insurance companies, and a substantial portion of the revenue coming from K R payments.
  10. This is largely due to the fact that the coverage is kept under wraps.
  11. Policies virtually never pay the ransom; instead, they nearly always reimburse the firm that does pay the ransom.

According to Red24, a non-broker specialist in crisis management circles, it is estimated that 30,000 “traditional” kidnappings (that is, those with ransom demands) occur every year around the world, 2despite the fact that only 10% of kidnappings are reported to the authorities, according to the New York Times.

  • What is not difficult to observe is the financial impact that kidnappings have on the firms that are the targets of them.
  • 5 The oil and gas industries are the most frequently targeted by kidnappers, owing to the widespread belief that energy firms are taking advantage of the wealth of Middle Eastern countries for their own gain.
  • A new form of abduction threat has emerged.
  • The “express kidnap,” which is a relatively new occurrence, occurs on average 6,000 times each year in Mexico alone, and is a relatively new phenomenon.
  • The situation is straightforward.
  • The vast majority of these occurrences go unreported, primarily as a result of corruption within the local law enforcement community.
  • As a result, not only must kidnapping and ransom insurance cover losses resulting from low-frequency, high-severity kidnap-for-ransom incidents, but they must also cover losses resulting from (relatively) high-frequency, low-severity express kidnapping incidents.
  • Groups who have historically abducted people only for political reasons are now beginning to see the economic worth of their actions.
  • Kidnappers are becoming more sophisticated, and they are increasingly helped by corrupt politicians and law enforcement officials on a regular basis.
  • As kidnappers become more sophisticated, businesses that conduct business in places where there is a high chance of kidnapping must become more adept at preventing losses.

In an era where globalization is accelerating and businesses are being motivated to increase profits, firms should recognize the need of taking safeguards to safeguard their “human capital.” Obviously, avoiding high-risk locations for kidnapping is the best course of action; nevertheless, if your firm is forced to conduct business in these places, K R coverage can serve as a crucial safety net.

  1. As the demand for coverage grows and the market continues to expand, it is only natural to expect price innovations in the products.
  2. Analysis of travel patterns, regional economic and political turmoil, and corporate worldwide strategy, on the other hand, is likely to yield valuable information.
  3. However, as more and more insurance firms recognize the potential for profit, loss ratios will rise while premium prices are kept at a minimum.
  4. A company that is able to predict aggregate kidnapping activity with the greatest accuracy and adjust its pricing policies as a result stands to make significant profits.
  5. Because K R policies provide rate relief to enterprises that participate in lower-risk activities, they incentivize those who have staff at risk to manage that risk more effectively.
  6. It is not the insurance companies who profit from loss occurrences; rather, it is the insurance companies who prevent their insureds from having to liquidate assets as a result of terrorist acts.
  7. They do not contribute to the problem; rather, they are required in order to mitigate the consequences of traumatic events.

It is critical for these companies to obtain this type of coverage for their most important employees.


Kostigen, T.

When should you think about purchasing kidnap insurance?

The information was obtained on November 7, 2013 from.

Burggraf, H., et al (2012, February 16).

Adviser on international affairs.


Dealing with Kidnappings in Foreign Countries is a serious business.

On November 7, 2013, I was able to obtain information from _r=2 percent of the population 20 Bowden, A., and Basnet, S.

Somali Piracy Has a High Economic Price Tag.

The information was obtained on November 7, 2013 from. A.C. is a five-letter abbreviation for A.C. (2013, June 27). I’m a client, and I need to be escorted away. The Economist is a magazine published by the British newspaper The Economist. The information was obtained on November 7, 2013 from.

Kidnap and Ransom Insurance Market is Booming Worldwide

“Global Kidnap and Ransom Insurance Market Insights, through 2027,” a new research product from Advance Market Analytics, is 232 pages long and is supplemented with self-explaining Tables and charts in a presentable manner. The report is available here. There are new emerging Trends, Drivers, Restrictions, and Opportunities identified in the Study as a result of contacting market-associated stakeholder groups to gather information. The rising amount of money being spent on research and development throughout the world has been a major factor in the rise of the Kidnap and Ransom Insurance business.

(France), Chubb (Switzerland), Aon plc (United Kingdom), Marsh LLC (United States), The Travelers Indemnity Company (United States), American International Group, Inc.

(United States), Lockton Companies (United Kingdom), Mercer UK ( (United Kingdom) Free Exclusive PDF Sample Copy of This Research @Scope of the Report on Kidnap and Ransom Insurance Get a Free Exclusive PDF Sample Copy of This Research In an increasingly dangerous world, corporations must take precautions to guarantee that business travelers and their families are protected from kidnapping, extortion, and wrongful detention or imprisonment.

A kidnap and ransom insurance policy will reimburse you for any money you have given to kidnappers or extortionists, as well as for any ransom money that has been lost in transit and a range of additional costs.

A kidnap and ransom insurance policy will typically cover any money paid to kidnappers or extortionists in exchange for ransom, as well as any money lost in transit and any other expenses incurred as a consequence of the kidnapping.

The Market’s Current Trend Fraud and criminal activity are on the rise.

Africa The following countries are represented at the country level: the United States, Canada, Mexico, Brazil, Argentina, Colombia, Chile, South Africa, Nigeria, Tunisia, Morocco, Germany, the United Kingdom (UK), the Netherlands, Spain, Italy, Belgium, Austria, Turkey, Russia, France, Poland, Israel, the United Arab Emirates, Qatar, Saudi Arabia, China, Japan, Taiwan, South Korea, Singapore, India, Australia, and New Zealand, to name a few examples.

  1. Ask Us If You Have Any Questions About the Global Kidnap and Ransom Insurance Market ReportStrategic Points Covered in the Table of Content of the Global Kidnap and Ransom Insurance Market Report include: Introduction, market driving force, and product in Chapter 1.
  2. Ch.
  3. In Chapter 3: Market Dynamics, Drivers, Trends, and Challenges, Opportunities for the Kidnap and Ransom Insurance Industry are discussed.
  4. Chapter 5: Displaying the data by kind, end user, and region/country for the period 2016-2021 Evaluating the major manufacturers in the Kidnap and Ransom Insurance industry, which includes a Competitive Landscape, Peer Group Analysis, and BCG Matrix, is covered in Chapter 6.
  5. (2022-2027) The Appendix, Methodology, and Data Source are all displayed in Chapter 89.
  6. Visit @ to get a detailed index of the whole research study.

Please contact us at the following address: Craig Francis (PRMarketing Manager)AMA ResearchMedia LLPUnit No. 429, Parsonage Road Edison, NJNew Jersey USA – 08837Phone: +1 (206) 317 1218AMA ResearchMedia LLPUnit No. 429, Parsonage Road Edison, NJNew Jersey USA – 08837

Insurance Marketplace Realities 2021 Spring Update – Special contingency risks: kidnap and ransom

FINEXN/AApril 21, 2021N/AApril 21, 2021N/AApril 21, 2021N/A In the face of cyber extortion occurrences, the special risks insurance markets are continuing to decrease their exposure.

Trend Range
Special contingency risks – kidnap and ransom: -5% to +5%

Key takeaway

It is expected that the special risks insurance markets will complete the elimination of cyber extortion coverage from their policy forms in the near future. Although the epidemic has not had a direct influence on the insurance industry thus far, it is altering the nature of the risks involved.

  • As a result of the relaxation of restrictions and lockdowns, the incidence of kidnapping activities has returned to pre-COVID-19 levels in a number of nations. As overseas travel has declined, many people believe that the chance of being kidnapped has decreased. However, our research reveals that the number of local residents abducted has increased. Furthermore, criminals have continued to invest in schemes such as virtual kidnaps (in which victims are tricked into believing a kidnapping has occurred and are forced to pay a quick ransom), in order to take advantage of the current environment and maintain a cash flow to fund further illicit operations. Because many technology-related crimes are not affected by lockdowns or restrictions on social and economic connection, cyber extortion has also persisted unabated. Indeed, the rapid increase in the number of people who work from home has provided cyber thieves with a broader spectrum of softer targets. Because organizations and individuals are becoming more desperate, many feel that the economic slump and the financial effect of COVID-19 will lead to increasing security threats and higher rates of crime around the world.

As a result, insurers are strengthening the language in their policies to include cyber incidents that may be deemed part of a ransom situation.

  • A blanket exclusion for cyber extortion has now been implemented by the vast majority of insurers, with the exclusion extending to practically all new and renewal business. Those insurers who are still supplying coverage for cyber extortion are being extremely selective in their coverage. When it comes to businesses that are more vulnerable to cyber extortion threats, underwriters have strong restrictions in place. The following are examples of coverage restrictions:
  • Restricting coverage to repayment of extortion/ransom payments, increasing yearly or policy aggregate limitations, and restricting coverage for crisis consulting fees and expenditures
  • Inclusion of legal liabilities (i.e., the expenses of obtaining a judgment, settlement, or defense)
  • Reimbursement of expenditures (e.g., forensic analysts, public relations consultants, and legal counsel) is limited or prohibited. Amendments to the “other insurance” sections to make it clear that coverage takes precedence over any other legitimate and receivable insurance
  • It is possible that extremely tiny limits/sublimits will apply to cyber extortion business interruption in the case of those few programs that do not have a cyber extortion exclusion

The need for active assailant coverage continues to increase.

  • Additionally to typical K R policies, the special risks market continues to create and promote policies that cover a wider variety of security-related risks. Specifically, we have seen increased interest from special risks insurers and other specialty insurers in providing active assailant coverage, and we have seen them offer increasingly customized solutions (either through endorsements or stand-alone policies) that include post-incident crisis management support, legal liability coverage, business interruption coverage (as a result of both physical and non-physical damage), and indemnification for a variety of incident-related expenses. Unlike traditional counter-terrorism and/or political violence strategies, these solutions go beyond typical coverage and are increasingly being utilized to supplement existing measures.


Willis Towers Watson hopes you found the basic information contained in this book to be both instructive and helpful in your decision making process. Please note that the material provided on this website is not meant to be legal or other professional advice, and should not be relied upon in place of consulting with your own legal counsel or other professionals. If you require any further information on your insurance coverage, please do not hesitate to contact us at any time. Insurance products are distributed in North America by Willis Towers Watson through licensed companies of Willis North America Inc., which include Willis Towers Watson Northeast Inc.

  • (in Canada).
  • The extent of coverage varies based on the jurisdiction and the circumstances.
  • Neither the material included herein nor the opinions expressed are meant to be legal or other professional advice, and you should not rely on it in place of consulting with your own legal and/or other professional counsel.
  • We make no representations or warranties, whether in contract, tort, or otherwise, in connection with this publication, and we fully disclaim any and all liabilities in connection with this publication to the maximum extent permissible by law.
  • COVID-19 is a condition that is rapidly developing, with changes occurring on a regular basis.

As a result, readers should be aware that any of the information included within this book may have changed after its original publication. If you require further information, please contact the author or your Willis Towers Watson representative.

A Guide to Kidnap and Ransom Insurance Coverage

Crimes such as kidnapping for ransom have been a persistent concern around the world since they can be a very profitable business for those who commit these acts of criminality. Kidnap and ransom insurance (also known as K R insurance) is intended to safeguard people from having to pay up their riches in order to protect their loved ones. It is evident, however, that it is not suited for everyone. Before making the decision to get kidnapping insurance, there are some key considerations to consider.

Key Takeaways

  • Traveling Americans, high-net-worth individuals, and celebrities are among those most likely to require K R insurance. Even though kidnap and ransom insurance offers negotiators and a potential compensation, victims must pay the ransom with their own funds before it can be repaid. Typical coverage under a basic K R policy includes coverage for ransom payment, lost income, interest on bank debts, and medical expenses. Some basic insurance are available for as little as $500 a year, but the cost increases as the scope of coverage increases.

Who Needs Coverage

When most people in the United States think about abduction, they generally think of nations in other parts of the world. In 2019, the United States State Department even included an indication for the risk of kidnapping in its travel recommendations. If you often travel to any of the countries on the list, you might want to think about purchasing K R coverage for your automobile. The primary targets are high-net-worth individuals and their families, professionals going overseas, tourists, journalists, and humanitarian relief workers, among others.

  • Employers who have staff who travel regularly to locations where abduction is an issue typically adopt this method.
  • A stand-alone policy for K R insurance is also available for purchase by private individuals.
  • Celebrities, well-known singers, athletes, and politicians are more likely than the general public to have kidnap and ransom insurance.
  • If their employees, volunteers, or students suffer injury as a result of their actions, such organizations may be subject to legal action.

How Kidnap and Ransom Insurance Works

When someone are abducted, the criminals usually insist that the victims do not inform anybody else about their ordeal. That may be rather difficult, and it might lead to issues when the employer or family wants to call the insurance provider. As a result, many K R plans have a special notice clause to address this issue. A abduction should be reported to the insurer and the authorities only when it is safe to do so, according to the policyholder, his or her employer, or their family. As soon as the insurance is notified, it promptly goes into action, dispatching professionals to aid in the release of the abducted individual.

The insurance, on the other hand, does not pay out a ransom directly.

It should be noted that the majority of K R plans will cover the interest on money borrowed for this reason.

Once the crisis has passed, the insurance will refund the insured for the ransom and any other expenditures incurred as a result of the incident. It is the policyholder’s responsibility to cover any additional charges if the overall expenditures exceed a certain threshold.

What Is Covered

Corporations and people are protected against financial damages resulting from abduction, extortion, and ransom demands under the terms of K R insurance. It is intended for individuals who travel regularly and not for those who travel for short periods of time. A standard policy will normally cover the payment of ransom, the loss of income, the interest on bank loans, and the cost of medical treatment. The costs of business interruption, crisis management consulting services, and even public relations charges for businesses are all covered by many insurance plans as well as other benefits.

Some K R plans additionally cover losses incurred as a result of injuries, including related cosmetic surgery expenditures, time off work upon discharge from the hospital, travel expenses, and incentive money awarded to informants.

In the worst-case situation, abduction and ransom insurance may also cover the costs of burial services and other related charges.

What Is Not Covered

American citizens should avoid going to countries that are highlighted in red on the United States State Department’s travel advice map, as a general rule. Because the State Department has encouraged Americans to avoid traveling to some nations, your K R insurance may not provide coverage if you find yourself in that situation. In many cases, your insurance policy will offer you with access to security specialists who can advise you on where you should travel and how to be secure when visiting specific regions of the world.

You should never discuss it with anybody, even if they are family members who are protected by the insurance policy.

Employees may also be ignorant of any kidnap and ransom policies that their companies have acquired to protect them in the event of a kidnapping or ransom.

The announcement of a K R policy is like to wearing a shirt that screams, “Kidnap Me!” Never inform anyone that you have kidnap and ransom insurance (also known as K R).

The Cost of Coverage

American citizens should avoid going to nations that are highlighted in red on the United States State Department’s travel advice map, as a general rule. ” It is possible that your K R insurance will not cover you if you travel to such countries since the State Department has recommended Americans not to do so. In many cases, your insurance policy will offer you with access to security specialists who can advise you on where to travel and how to be safe when visiting specific regions of the world.

No one, not even family members who are covered by the insurance, should be aware of what you’re doing.

Employees may also be unaware that their companies have acquired abduction and ransom insurance plans that protect them for the same reason.

Declaring that you have a K R policy is the equivalent of wearing a shirt that reads, “Kidnap Me!

“. Keep your kidnap and ransom insurance (K R) a secret from everyone. Making your K R insurance policy public significantly increases your chance of being abducted and may result in the cancellation of your coverage.

The Bottom Line

Corporations and people are protected against financial damages resulting from abduction, extortion, and ransom demands under the terms of K R insurance. Despite the fact that these insurance are typically sophisticated and expensive, they are a vital need for employees or high-net-worth individuals who go to locations where the danger of kidnapping is high.

About Us

There are approximately 122,000 highly qualified and experienced individuals working for GardaWorld, who are devoted to protecting businesses, workers, and assets all around the world. From high-risk war zones to day-to-day operations, GardaWorld assists clients in securing workplaces, improving services, managing reputations, and focusing on core duties while maintaining complete security. GardaWorld is now bringing risk and crisis management to a whole new level by partnering with the world’s most innovative companies.

Crisis24 offers a comprehensive variety of services, including security advising, crisis management, response, cyber security, and executive protection, among others.

It is only as strong as a company’s reputation, in today’s complicated world, is based on how good its product or service is, how far it can stretch its vision, and how honest its employees are.

Atlas Underwriters

Incidences of abduction for ransom are increasing like wildfire as a result of the fact that it is a very profitable industry for the criminals involved. According to estimates, perpetrators of this crime are able to collect around $1.8 billion in ransom payments each year, with the vast majority of kidnappings of nationals happening in Latin America and portions of Africa, according to the International Criminal Court. Wealthy businesspeople, professionals, tourists, humanitarian workers, and even students are among the primary targets.

Kidnap, Ransom and Extortion Insurance

Consider the relief you’d feel if you were released after being abducted. Assume that your family was forced to liquidate life savings, take out loans, and sell major assets in order to hire an experienced negotiator, acquire crisis management services, and purchase crisis management equipment, on top of the ransom payment. Now imagine how you’d feel when you realized that your family had to liquidate life savings, take out loans, and sell major assets in order to do so. We are all aware that life is precious and that your family’s first goal is your well-being.

A kidnap, ransom, and extortion insurance policy will protect you and your family in the event that someone in your family is kidnapped.

Kidnap and ransom insurance reimburses the policyholder for all of the expenditures that they incurred throughout their harrowing journey.

It also covers any rehabilitation costs that may be required once you are reunited with your family after being kidnapped or held hostage. In addition, any bodily damage, such as amputation of a limb, incurred while being abducted is covered.

What does a Kidnap Ransom and Extortion Insurance Policy cover?

A broad range of benefits and services are available to individuals as well as businesses operating in both domestic and international markets, particularly in high-risk areas of the world such as Mexico, Colombia, Venezuela, the Middle East, as well as some parts of Asia and Eastern Europe. Kidnap RansomExtortion insurance is available to individuals as well as businesses operating in both domestic and international markets. Kidnap, ransom, and extortion policies provide protection against the possibility of being kidnapped, held for ransom, or otherwise detained without due process.

How Does It Work?

Insurers provide cash compensation as well as skilled crisis management as part of their insurance cover. Ransom payments, hostage negotiations, medical and psychiatric treatment, loss of earnings, consultation costs, family counseling fees, rehabilitation and a variety of other expenditures are often covered by a standard insurance. These insurance can also provide coverage for personal injury damages resulting from a kidnapping or hijacking.

Crisis ManagementResponse

It is crucial to note that kidnap ransom insurance does more than just offer a financial channel for the ransom; it also provides customers with access to crisis management response teams, whose primary goal is the safe and prompt release of the victim. Their deep understanding of the crisis region, as well as local laws and challenges, is complemented by rigorous training in danger assessment, prevention, and hostage negotiation. Our clients have access to some of the most prestigious crisis management firms as a result of our connection with leading insurance carriers.

Who is Eligible for Coverage?

Kidnapping in the traditional sense Ransom insurance was traditionally reserved for multinational enterprises and high-net-worth individuals. However, with the fear of terrorism on the rise, the worldwide climate has altered dramatically, with many more firms preparing for this type of risk than in previous years. A wide range of companies, organizations, and individuals can obtain coverage if they are operating in or intending to travel to high-risk areas of the world.

  • Companies having offices or workers in other countries are referred to as corporate or business. Individuum/Family– High-net-worth people and families who reside in or travel to high-risk places
  • Protection for Religious Organizations– Provides protection against a wide range of security risks.

Corporate Sector

Atlas Underwriters provides kidnap and ransom insurance for businesses of all sizes, but notably for international corporations with offices scattered across many countries and geographically dispersed. Kidnap and ransom insurance acts as a preventative measure to safeguard businesses from both local and international risk. The following are some instances of the hazards to which covered entities are exposed:

  • Kidnappings, extortion, hostage situations, child abductions, disappearances, hijackings, and individuals or groups that have been proclaimed persona non grata are all examples of crimes against humanity. Evacuations due to security concerns
  • Foreign countries’ unlawful detention and imprisonment

Individuals and businesses can benefit from the services of Atlas Underwriters in protecting their families and workers. Because of the nature of this policy, all quotations for kidnapping, ransom, and extortion will be processed directly with our underwriting department. Click Here to View BrochureFull NameEmail Brochure (in PDF format) If your download does not begin automatically, or if you have a popup blocker enabled, please click here.

KidnapRansom Facts*:

  • The average ransom demand is in excess of $2 million. Kidnappings have been recorded in the range of 25,000 to 30,000 instances. According to estimates, more than 80 percent of instances go undetected. According to studies, 87 percent of victims are local residents. Ransom payments have exceeded US$1.5 billion in total throughout the world. Africa and Asia are responsible for 70% of all global occurrences reported to the authorities.

Top 10 Kidnapping Capitals

Wordwide Latin America
Mexico Mexico
India Venezuela
Pakistan Colombia
Iraq Guatemala
Nigeria Brazil
Libya Haití
Afghanistan El Salvador
Venezuela Honduras
Lebanon Bolivia
Colombia Peru
Statistics were gathered from various online sources

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