Key takeaways
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Kidnap and Ransom Insurance provides both financial protection and crisis support in some of the most dangerous and unpredictable circumstances
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From corporations, non-profits and individuals, K&R cover ensures that if the unthinkable happens, there are experts on hand to protect lives
What is Kidnap & Ransom Insurance?
Importantly K&R cover provides immediate access to expert crisis response consultants. These professionals are highly trained negotiators, security advisers, and risk management specialists who help resolve incidents while safeguarding lives.
What K&R cover is available:
• Salary support
• Rest and rehabilitation expenses
• Job retraining costs
• Legal advice
• Fees of an interpreter or translator
• Psychiatric and medical care
• PR expenses
• Costs of temporary security measures
• Travel and accommodation costs
Cover can also be extended to accomodate for:
•. Loss of earnings
• Threat response
• Disappearance investigation
• Stalking
• Express kidnap
• Hostage crisis
• Emergency political repatriation and relocation
• Tiger kidnap
• Assault
• Product extortion recalls and destruction costs
• Blackmail
• Cyber extortion response consultant fees
Why K&R cover is an important consideration:
Multinationals, charities, journalists, aid workers, contractors, high-net-worth individuals, with an exposure to high-risk regions are more commonly the persons that will consider purchasing cover.
High-risk regions include:
• Regions of Africa (Nigeria, Somalia, South Africa)
• Areas of the Middle East (Iraq, Yemen, Syria)
• Certain regions of Asia (Philippines, Afghanistan, Pakistan)
Key features available:
• Limits are available per insured event
• Guaranteed access to specialist crisis response consultants
• No deductibles
• Covers demands against both the organisation’s and personal assets
• Covers all directors, officers and employees, including their family members
Do we need K&R cover?
- Do you have people that have been targeted before or have they been affected by a security incident such as extortion, threats, kidnap or unlawful detention?
- Do you operate people in ‘higher risk’ territories?
- Employees, contractors, sub-contractors, crews
- Business travellers
- Volunteers
- Would your organisation benefit from consultation about the security threats to their people?
- Do you currently purchase special contingency (K&R) insurance through another broker or an insurer?
- Could the organisation, brand, individual or family in question be considered a high-profile target? i.e. is the brand well-known locally? Is there a perception of wealth?
- Is there anything controversial about the organisation and its operations that could attract unwanted attention to employees?
- Have you considered the impact of personal data/information extortion?
- Do you have responsibility for areas where there are high densities of the public or their staff?
- Are you aware of the reputational risk, legal liability issues and financial impact associated with mishandling an incident such as extortion, detention or kidnap?
How much does K&R insurance cost?
What crisis support is available?
- Access to dedicated crisis support agents, connecting clients with their insurance-backed assistance provider(s).
- Quality assurance through an appraisal process, verifying the experience and capability of assistance providers and monitoring service provision, ensuring that clients get the most out of their service provider.
- Continued advocacy throughout the incident from security specialists and intelligence analysts.
- Access to an extensive database of third parties, providing a range of security and crisis response services.
About the author
Simon Taylor is a respected senior industry professional and a Chartered Insurance Broker with over 20 years’ of experience in the commercial insurance sector as an underwriter, broker and director.