Kidnap, Ransom & Extortion Insurance: What It Is, and Why It’s Important For Your Clients
Every year, roughly 20,000 kidnappings take place throughout the world. While this number may seem high, it’s still not accounting for the unreported incidents that take place. In fact, fewer than 20 percent of all kidnappings are actually reported to the authorities, shining a light on the severity of the issue.
Kidnapping-for-ransom incidents have become lucrative opportunities for criminals looking to extort major dollars and other sensitive materials from people. Kidnappers bring in roughly $1.5 billion collectively in ransom payments. Taking these numbers into consideration, it’s important for individuals and business owners to invest in education around kidnap, ransom, and extortion insurance.
Who K&R + Extortion Insurance is Important To
Prime targets for kidnappings, ransoms, and extortions are wealthy businessmen and their families, professionals traveling abroad, and tourists on vacation. Kidnap and ransom coverage is usually included in corporate packages for employees who frequent other parts of the globe. K&R insurance can include coverage for spouses, relatives, guests, and housekeepers, or just an individual.
This kind of coverage can also be purchased separately as a stand-alone policy Tangram Insurance Services offers a comprehensive package for individuals as well as corporate clients. Look into Tangram Insurance Services’ K&R insurance to see how it can help to provide you the peace of mind needed when traveling abroad.
K&R insurance provides protection for corporations and individuals against major financial losses as a result of kidnapping, extortion, and demands of ransom. A typical well-rounded policy covers ransom payment, loss of income, interest on bank loans as well as medical care. Policies also usually cover the costs of business interruption and support services.
For any bodily harm, some K&R policies also cover losses related to injury, cosmetic or plastic surgery expenses, and time away from work. For cyber extortion, K&R can also cover losses connected to online ransoms.
K&R insurance does come with some built-in exclusions, such as not covering those who travel to places that have sanctions imposed on them by the U.S. This includes countries like Iran and Syria. Many policies provide access to security experts who can help provide information on where you can and cannot travel to with this kind of insurance, as well as how to stay safe when going to certain areas of the globe.
Using K&R Insurance
Usually, in most kidnapping cases, the culprits make demands that the authorities not be notified. This creates a challenge for those dealing with kidnappers and extortionists. For this reason, K&R insurance policies include a provision that states that the policyholder, employer or family member should notify the insurance company and law enforcement about a kidnapping or ransom only when it’s safe.
Once contacted, the insurer can immediately take over and send out specialists to help in the release of the individual(s) who have been kidnapped and held for ransom. This includes negotiations and delivery of the ransom, as well as evacuation and medical help.
About Tangram Insurance Services
Located across the Golden Gate Bridge, just outside of San Francisco, Tangram Insurance Services is a full-service Managing General Underwriter and Program Manager offering specialty programs. We focus on industry-relevant coverage, competitive pricing, and practical business and risk management solutions for your clients. Since we are not all things to all people, we make sure to create outstanding custom-built solutions that matter to those businesses, and the brokers who serve those industries. Contact us at (888) 744-9810.