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Learn about kidnap, ransom and extortion insurance and it helps protect organizations and high net worth individuals – both at home and abroad. K&R insurance offers coverage for may threats including kidnapping, extortion & hijacking to wrongful detention and missing persons.”

Kidnap, Ransom And Extortion Insurance

Did you know that there are an estimated 20,000 kidnappings that are reported around the world each year – not including the number of kidnappings incidents that are not reported? Are you aware that it is estimated that less than 20 percent of the kidnappings that are actually reported to authorities?

Kidnapping as a means of collection ransom or for extortion purposes incidents have been on the rise in recent years. These incidents take place around the world and they occur because they can be quite lucrative for those who perpetrate these crimes. In fact, it is believed that kidnappers collect more than $1 billion in ransom payments. In fact, in the country of Mexico – the leading country where kidnappings, ransom, and extortion incidents occur – earnings for this type of “business” are an estimated $50 million annually.

These statistics are disturbing, to say the least, but they are a reality. In order to safeguard those who are at risk for these types of events, insurance companies offer kidnap, ransom, and extortion insurance policies.

What Is Kidnap, Ransom And Extortion Insurance?

Kidnap, ransom, and extortion insurance policies are designed to cover the perils that are associated with kidnapping, extortion, hijacking, wrongful detention, and ransom payments. Insurance companies that provide this type of coverage can reimburse the insured for any losses that are incurred as a result of such incidents.

This K&R insurance is designed for people who travel frequently to do business in areas where the above-mentioned incidents commonly occur. Such areas include Mexico, Nigeria, Venezuela, Haiti, Russia, and certain countries that are located in Eastern Europe. Parts of central Asia are now also becoming high-risk areas for these types of incidents, especially Iraq and Afghanistan.

What Does Kidnapping, Ransom, and Extortion Insurance Cover?

The losses that are covered by most kidnap, ransom, and extortion insurance policies typically include:

  • Ransom that are paid out to kidnappers or extortionists.
  • Ransom money that is lost in transit – it disappears, is destroyed, is confiscated, or is wrongfully appropriated.
  • Accidental death as a result of a kidnapping.
  • Accidental dismemberment as a result of a kidnapping.
  • Medical care for the individual who was kidnapped and held for ransom or extortion.
  • Disruption of operations as a result of kidnapping or extortion.
  • The damage that may be done to a company’s brand as a result of such incidents.
  • Replacement of wages and salaries.
  • Relocation costs after a kidnapping.
  • Job retraining after a kidnapping.

Often, a kidnapping, ransom, and extortion policy will also cover the cost of crisis management solutions.

Important Things to Know About Kidnapping, Ransom & Extortion Insurance

While this type of insurance can offer broad protection, it is important to note that it does not provide protection when traveling to countries that the United States has imposed sanctions on. Syria and Iran are two examples.


The insurance company will likely offer insight on where you can and cannot travel in order for your insurance to provide coverage. Furthermore, they will provide you with tips to help you stay protected when traveling to certain parts of the world.

Typically, this type of insurance coverage cannot be spoken about. If those who are covered by kidnap, ransom and extortion insurance speak about it, there is a chance that the policy could be null and void. The reason being quiet about these insurance policies is important is because providers want to safeguard themselves from fraudulent kidnapping and ransom claims. If you were to announce that you have a policy, essentially, you are broadcasting that kidnapping would result in financial gain for the kidnapper or extortionist.

How Much Does Kidnap, Ransom And Extortion Insurance Cost?

The cost of K&R insurance varies from business to business. The size of the corporation, they type of business the corporation conducts, the amount of travel that occurs, and the specific areas that are visited are all factors that are taken into consideration when determining the cast of this type of policy. For example, if the insured travels to areas where such incidents occur frequently, such as Mexico or Haiti, the cost of coverage will be higher.

Kidnap, Ransom And Extortion Insurance - The Bottom Line

We hope this article on kidnap, ransom and extortion insurance has been informative. Since this is a very specialized coverage – to learn more about K&R insurance, including what it covers, how it can benefit your business and employees, and the cost – speak to a reputable insurance broker.

High Net Worth Insurance Information

EK Insurance advises our affluent clients on what coverage options are available to them. Please check out more of our articles on insurance choices for wealthy families:

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