Kidnapping has become a bigger problem around the world, especially in certain countries. If you’ll be traveling to parts of the world where kidnapping for ransom is a potential concern, you may wish to purchase kidnap and ransom (K&R) insurance. However, depending on the nature of your business, you may also wish to purchase it in case of events that could happen right within the United States. This way, you’ll have some financial coverage for you and your family in the case a kidnapping for ransom occurs.


Who should purchase K&R insurance?

Certain individuals are more likely to be targeted by kidnappers. If you fall into one of the following groups, you may wish to purchase K&R insurance for your own peace of mind if you’ll be traveling to a foreign country, especially one that’s notable for kidnapping:

  • Business people and their families traveling for work
  • Tourists
  • Journalists
  • Aid and relief workers
  • Wealthy or high-profile people, including celebrities, musicians, sports stars and politicians


Beyond these groups, you may also wish to carry K&R insurance if you fall into one of these categories, as well:

  • Schools and universities that provide daycare or study abroad programs
  • Banks and financial institutions
  • Hospitals and health care facilities (in the case of child abductions)
  • Entertainment companies (in the case of high-profile individuals)


What does K&R insurance cover?

Coverage varies on the policy you purchase, but in general, K&R insurance provides funds to cover ransom, extortion, or hijacking demands to help ensure the safe return of the victim(s). It can also include emergency evacuation from unsafe areas and delivery of ransom or extortion money. The good news is that K&R professionals are trained and experienced with keeping victims safe, when to alert authorities and how to negotiate to ensure a smooth and safe return of victims. Depending on the policy, aftercare coverage for psychiatric and medical care, loss of income and interest on bank loans may also be provided, among various other services.


What isn’t covered?

Some policies will not cover kidnap and ransom situations in countries with which the United States has imposed sanctions. As with any travel, it’s always a good idea to check which countries are recommended “do not travel” areas according to the United States government. You’ll also want to be sure your coverage is adequate to cover ransom demands. Experts recommend $50,000 to $1 million for individuals and $1 million to $10 million for companies. It helps to work with a professional at your insurance company to understand what is and isn’t included in the policy, coverage, limits and everything else you’ll need to know before you purchase K&R insurance for yourself or your company.




Talk to the professionals at Odell Studner

We specialize in risk management and we’ll help you assess the risk of your company and make the right decisions to mitigate that risk. To learn more about the services we offer, contact us today!