Kidnap and ransom insurance

Kidnap and Ransom Insurance or K&R Insurance is designed to protect individuals and corporations operating in high-risk areas around the world, such as Colombia and Peru [ [http://www.insurenewmedia.com/pages/kidnap-ransom-extortion-insurance.asp Kidnap and Ransom Insurance Explained ] ] . K&R insurance policies typically cover the perils of kidnap, extortion, wrongful detention and hijacking [ [http://www.tennant.com/p-kandr.php Kidnap and Ransom Insurance ] ] .

K&R policies are Indemnity policies - they reimburse a loss incurred by the insured. The policies do not pay ransoms on the behalf of the insured. The insured must first pay the ransom, thus incurring the loss, and then seek reimbursement under the policy [ [http://www.miller-insurance.com/Specialist_areas/Programmes_and_facilities--04Kidnap_and_ransom.aspx Miller Insurance Services Limited - Programmes and facilities - Kidnap and ransom ] ] . Losses typically reimbursed by K&R polices are ransom payments, Loss of Ransom-in-transit and additional expenses, such as medical expenses [http://www.bellwoodprestbury.com/kidnap&ransominfo.asp Bellwood Prestbury International Insurance Services ] ] .

The policies also typically indemnify Personal Accident losses caused by a Kidnap. These include Death, Dismemberment, and Permanent Total Disablement of a kidnapped person. They also typically pay for the Fees and Expenses of Crisis Management Consultants [http://www.asishouston.org/ChapterNews/Speakers/St_Paul_Factsheet.pdf] . These consultants provide advice to the insured on how to best respond to the incident.

Policies typically require clients to restrict the knowledge of the existence of the coverageFact|date=October 2007. The policies may be written to cover families and corporations. Some policies include kidnap prevention trainingFact|date=October 2007.

References

Further reading

* [http://fpc.org.uk/articles/126 Is K&R Coverage a Risky Business?] - via Lloyd's of London
* [http://www.hreonline.com/HRE/story.jsp?storyId=5354220 Need K&R Insurance?] - for human resources executives
* [http://findarticles.com/p/articles/mi_m3495/is_6_46/ai_76940941 Buying Protection from Terrorism] - Human Resources magazine


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