Kidnap and Ransom

Kidnap and Ransom (K&R) insurance protects corporations and individuals against financial losses that result from kidnapping, extortion, and ransom demands. It is designed to insure those who frequently travel, not for brief trips. A basic policy typically covers ransom payment, loss of income, interest on bank loans, and medical care. Many policies also cover the costs of business interruption, consultants for crisis management, support services, and even public relations expenses for companies. In addition, a policy purchased by an employer covers lawsuits against the company by the employee who was kidnapped.

Some K&R policies also pick up the tab for losses due to injuries, related cosmetic surgery expenses, time off work after release, travel expenses, and reward money paid to informants. Damages due to extortion, terrorism, and wrongful detention can be covered too. In a worst-case scenario, funeral expenses may also be covered by kidnap and ransom insurance.