Kidnap and Ransom Insurance

Kidnap and ransom is a legitimate threat for UK-based businesses. In many parts of the world, these illegal acts have become a business in and of themselves, with sights set on wealthy UK companies and business travellers. In most cases, kidnappers take professionals captive to make a profit, releasing the individual once demands have been met.

Because many overseas attacks are related to business, the need for kidnap and ransom cover continues to grow. This is particularly true in areas where local authorities have turned a blind eye to guerrilla activity and in areas that are stricken by poverty. To combat financial losses in the event of a kidnap or extortion situation, Kidnap and Ransom (K&R) insurance is a risk transfer option.

What is Kidnap & Ransom Insurance?

K&R is typically a stand-alone policy for employees engaged in international business travel. It covers costs relating to events such as:

Kidnap and ransom

Seizing an employee with the intent to demand money in return for the employee

Wrongful detention

Confining an employee under the guise of government


Demanding money with the threat to injure or kill an employee, damage property, divulge trade secrets or spread a computer virus


Holding an employee for an extended period of time against his/her will on an aircraft, motor vehicle or ship.

What is covered on Kidnap & Ransom Insurance?

Cover can include ransom and extortion payments, in-transit money delivery cover, consultant costs, negotiation costs, public relations costs, interest fees cover, judgement settlements and defence costs. The policy can also cover harm to the captive employee and his/her family such as death and dismemberment benefits, medical costs for injuries and psychiatric treatment after the employee is freed. Cover is particularly helpful during times of negotiation, as experts are provided to the company to successfully free the captive employee with minimal harm.

In addition to purchasing proper cover, check with your insurer to see if they offer training sessions for travelling employees to educate them on how to react in a hostage situation. The training typically provides insight on how to initially deal with captors until an expert is available to take over negotiations.

Insurers also advise that employers not reveal that they have K&R cover. This confidentiality provision is designed to thwart employees from revealing to potential captors that they are insured. A large K&R insurance policy may make the employee a lucrative target.

Who Needs Kidnap & Ransom insurance?

Companies operating overseas need K&R insurance to protect their travelling employees. This applies to businesses of all sizes—kidnappers do not prefer larger companies over the small ones. In this business, everyone with money is considered a good target.

The cover is particularly beneficial for employees who travel to regions of the world that are considered high risk. Countries with a consistently elevated rate of kidnaps and/or extortions include Afghanistan, Brazil, Honduras, India, Mexico, Nigeria, Pakistan, Philippines, Somalia, Venezuela and South Africa.

Underwriting Considerations

The premium for this type of cover is generally based on the following:

  • Type of industry
  • Revenue of the insured company
  • Country of residence
  • Travel patterns of the employees

At Business Insurance Service, we can assist you in designing a K&R a policy that meets your company’s specific needs. We work closely with K&R insurers to ensure you have the cover, training and support you need, when you need it most.

How Business Insurance Service can help

No matter what policy you choose, make sure it is tailored to your businesses particular needs. Due to the specific nature of the business, it takes an experienced broker with industry savvy to create a bespoke policy that covers all your risks. Business Insurance Service possesses the know-how and vision to secure your business for future success.

We make sure you get the best deals too, we don’t just necessarily give you one quotation, we can arrange a selection of options for you from our panel of specialist insurers. You can choose the right one for you, putting you back in control of your financial decisions.

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To find out more about kidnap and ransom insurance call us on 01273 789 979.

Email us at hello@businessinsuranceservice.co.uk

Use our Get In Touch form to request a call-back.

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