Group Kidnap & Ransom Insurance

Group Kidnap & Ransom Insurance

The aim of a kidnap & ransom (K&R) insurance policy is to provide an organisation with support and financial reimbursement in the event of kidnap, extortion, detention or hijack of a member of the organisation.

An organisation sending their staff, volunteers or contractors overseas, particularly to more troublesome areas has a duty of care. Whilst there should be suitable risk management such as training and specific protocols including exit plans, K&R insurance can be part of the overall mix of deploying people overseas.

What makes a high profile target?

Individuals can become potential targets for a number of reasons including:

• Working in a position of status / high profile
• Working in a difficult / dangerous city, country or territory
• Working for a large organisation with perceived significant levels of funds
• Lack of awareness / security training
• Family members of the above

Often there is a financial motivation to kidnapping event, with the perpetrators seeking payment of a ransom in return for the release of the hostage.

What does a Kidnap and Ransom insurance policy cover?

K&R insurance policies can be tailored to the needs of an individual organisation but some of the common covers include:

• The cost of reimbursement of a ransom payment (including any interest on loans required to generate the liquidity required to pay the ransom). It is important to note the reimbursement element rather than payment of the ransom demand.
• Costs of replacing a ransom payment lost in transit
• Costs and expenses of response consultants to assist with incident handling
• A wide range of costs including legal, security, travel, rehabilitation, psychiatric and medical

Want to explore some options?

If you wish to explore K&R insurance options for your organisation, then please don’t hesitate to get in touch on a confidential basis.