Article May 9, 2022

Is kidnap & ransom insurance right for my business?

Businesses with operations in traditionally high-risk countries are no longer alone in their need for kidnap and ransom coverage. In fact, the changing nature of political and electronic threats means that businesses and travellers everywhere can now encounter problems.

Here are five reasons why a K&R policy may be the right solution for your business:

You are looking to send employees abroad

As we begin to come out of the recent pandemic, companies are starting to send employees abroad for business travel again. While the risks to personal health might no longer be so high, increasing instability around the world presents its own dangers. Political upheaval and disparity between the rich and poor are both key factors in criminal and political groups turning to kidnap for ransom as a way to obtain funds or make ideological statements.

A kidnap for ransom incident can incur significant costs

Depending on the incident, a multitude of expenses can be incurred:

  • Legal fees
  • Fees and expenses of the response consultant
  • Psychiatric, medical and dental care
  • Salary costs for the covered persons or their replacements
  • Public relation costs
  • Rest and rehabilitation costs
  • Travel and accommodation costs
  • Cost of communication

A K&R policy is able to provide robust financial protection as well as essential access to experts in your time of need.

You have a duty of care to your employees

Companies owe their employees a duty of care and should be ready to accept any legal liability if they fail to protect them during travel. In addition to providing access to security consultants with expertise in getting your employees safely home, a K&R policy will cover any legal amounts a company may be required to pay, as a result of kidnap victims bringing a legal suit against them post-release.

You want to stay covered at home

A K&R policy is not just about travel protection. The core policy also covers events that could happen much closer to home. These can include extortion demands, disappearance of workers and threats to your business and employees. The cover also extends beyond the employees of the company to include relatives, guests on the company’s premises and anybody working on behalf of the company.

Access to 24/7 expert advice should the worst happen

A K&R policy will not only protect your company’s balance sheet by providing reimbursement of ransom to safely secure the return of your employees, it will also provide access to expert security response consultants who will guide you through every step of the kidnap incident. They will be able to assist with the initial advice of the call, the negotiation, the delivery of the ransom and returning the kidnap victims back home.

If you have any questions, please contact the K&R team at