Kidnap & Ransom – insurance in crisis situations
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+++ Companies and individuals can insure themselves against kidnapping and other criminal offenses +++
+++ The insurance cover can be designed very individually +++
+++ Nondisclosure clauses prevent Kidnap & Ransom policies from being better known +++
Our world is becoming more and more global. Both private individuals and company employees are increasingly traveling to high-risk regions. There is an increased risk of kidnapping and other criminal offenses. Reason enough to look into possible insurance coverage.
Where the world is most dangerous
When you think of crisis and risk areas, usually countries like North Korea, Afghanistan or Iraq come to mind. In fact, there are many other countries associated with a high or very high risk of kidnappings or other events. It is similarly dangerous in the Middle East, Africa, Central America and Southeast Asia, but there are risk areas even in Europe. The map below gives a good overview of the current security situation worldwide:
Kidnap & Ransom policies can therefore be relevant for many companies, but also for private individuals.
What is Kidnap & Ransom Insurance?
Kidnap and Ransom are generic terms for crisis situations that people at home and abroad can get into. In addition to the eponymous events, numerous other risks can be insured under Kidnap & Ransom policies, e.g .:
- Blackmail
- Deprivation of liberty
- Transport hijacking
- Express kidnapping
- Tiger Kidnapping (kidnapping to extort other crimes)
- Virtual kidnapping (simulating kidnapping)
- Product extortion
- Political capture
- Cyber extortion
- Evacuation
- Business interruption
- Disappearance
- Threat
- Crisis protection
The specific insurance coverage depends on the needs of the customer and the chosen provider. Kidnap & Ransom policies can usually be put together very individually and thus adapted to your own wishes and concerns.
Kidnap & Ransom policy scope
The core of a Kidnap & Ransom policy is the insured ransom. This can usually be insured in the range of EUR 500,000 to EUR 25,000,000, and higher if there is justified need.
In addition, further costs can be insured. This includes e.g. the loss of the ransom in the context of a failed handover, but also liability claims that may arise in connection with extortion. Furthermore, personal injury and property damage or financial loss to companies can be insured.
To avoid the high costs and inconvenience of a claim, most insurers offer financial and organizational support for preventive measures, for example if the security situation in the destination country changes.
Target group of Kidnap & Ransom policies
The core target group of Kidnap & Ransom policies are companies that want to protect important employees who are either at particular risk of falling victim to a crime due to their personality or who pose an exposed risk due to their whereabouts. Examples can be:
- Prominent personalities
- Employees posted to risk countries (e.g. engineers in Africa)
- Journalists and helpers in crisis areas
Not only companies, but also private individuals can be considered for Kidnap & Ransom policies. In addition to “important” people due to wealth, fame or profession, family members also represent an insurable risk, as known kidnapping cases in the past (e.g. Charles Lindbergh jun.) show.
Why do we hear so little about Kidnap & Ransom policies?
There are two main reasons why kidnapping insurance is largely unknown. Initially, such policies were simply banned for a long time. The state wanted to prevent criminals from benefiting from insurance coverage.
Although the insurance ban has now been lifted, awareness has not increased significantly. This is probably due to the fact that existing policies are usually not disclosed. This is to prevent hijackers from targeting insured persons or companies in the knowledge that sufficient money is being made available by the insurer.
How much does a Kidnap & Ransom policy cost?
The insurance coverage of a Kidnap & Ransom policy is usually coordinated very individually with you, which also allows the insurance premiums to vary greatly. Cheap policies for individuals start at around 1,000 euros per year. The following characteristics particularly influence the contribution:
- Number of insured persons
- Insured countries / regions
- Branch
- Desired sum insured
Get an offer for Kidnap & Ransom policy
We work with numerous German and international insurers who offer Kidnap & Ransom policies. We would be happy to make you an individual offer according to your wishes. Due to the complexity, a preparatory conversation is necessary for this, which can take place in person, by telephone or as part of a video chat.