What is Kidnap and Ransom Insurance

Kidnapping and ransom may seem like something that only happens in the Hollywood Blockbuster movies like ‘Ransom’, ‘Man on Fire’ or ‘Proof of Life’ among others. However, kidnapping and ransom does happen around the world. For some wealthy or powerful individuals it’s a fact that they have to face and consider when looking at insurance.

Who is at risk of being kidnapped? That usually depends on the financial situation of the person, their family and their business, or what position they hold in a company. It’s not a nice thought, however if a person does pose a risk of being kidnapped or suspects that this may be a possibility, taking out kidnap and ransom insurance might be a smart option. This is a good option for companies who operate not only on the domestic market but the international one as well. So you may benefit from kidnap and ransom insurance if;

1 – You are extremely wealthy

2 – You have experienced death or kidnapping threats in the past

3 – You work for a multinational company that may have many enemies

Kidnap and ransom insurance covers the kidnapping, hijacking and any bodily injury that may arise. It is also the insurance that covers against threat to kill, injure or abduct an individual or individuals. This will include any ransom payments, medical costs and psychological help after the ordeal, as well as any costs incurred from job loss, regular bills and other payments that may arise as a result of the kidnapping.

Premiums for kidnap and ransom insurance are determined as per individual case. The assessors need assess the level of risk involved in order to determine the appropriate premium. Obviously, the lower the risk the lower the premium and vice versa. Factors that may affect your premium will include your location, business, position, wealth and history of threats among others.

Kidnapping and ransom may only seem like an issue handled by the film makers but the truth is that it is an everyday fact of life for some. Kidnappings happen in America, they happen in Asia, Europe and Africa. They happen in the city and they happen in the jungle regardless of your age, sex or education. For most people kidnap and ransom insurance is not necessary, but there are some individuals, families and business who should seriously take it under consideration to protect themselves, their families or employees in case the worst happens.