4 Coverages Typically Included in Ransom and Kidnapping Insurance

While many people in the United States feel a sense of security when traveling, it’s not always that way around the world. Key employees traveling for business can find themselves at the mercy of kidnappers who seeking ransom or other payments in exchange for the employee’s safe return. This is a very unnerving scenario to consider, but it must be part of a comprehensive risk management strategy. Here are four coverages typically found in kidnapping and ransom, or K and R insurance.


A ransom payment is a sum exchanged for the safe return of the kidnapped victim.  Since the aim of any interactions with kidnappers is ultimately the safe return of your employee, policies will pay the ransom request.

Loan Interest

Similarly, interest from any loans taken out to pay for extortion costs are also covered. This happens when the kidnappers threaten the victim’s family for political purposes or threaten harm against the company’s real property or intellectual property if payments arent made.

Medical Expenses

Even if the victim is returned home, kidnapping is a violent crime that may result in injuries for your employee. K and R insurance also provides reasonable medical expenses for injuries sustained during the situation.

Lost Wages

With the employee unable to work, the family may suffer due to lost wages. Some policies will indemnify the employees family for those lost wages.

Kidnapping is a slim but serious threat to employees. Having the right policy will provide both the victim and the company with recourse if that misfortune befalls someone in your employment.