Kidnap and Ransom Insurance

Kidnap and ransom (K&R) insurance, also known as special crime insurance or special risks insurance, helps protect organizations and their people against a range of critical security incidents including kidnap‑for‑ransom, extortive crime, unlawful detention, malicious threats, disappearance and security and political evacuations. Historically purchased for exposure in high-risk territories, these policies are increasingly being implemented as a ‘security toolbox,’ and can provide 24/7, immediate crisis response from industry specialists for incidents occurring at home and overseas.

Organizations and individuals who work and travel in medium‑ and high‑risk territories have often been the primary demographic for this form of insurance. However, organizations with a focus on their duty of care toward staff and contractors, as well as a desire to strengthen their corporate governance and reinforce their crisis management readiness, should consider the benefits that a kidnap and ransom insurance solution could provide.

While travel and personal accident insurance policies may include some elements of security‑related coverage, they often aren't designed to manage a serious kidnap, extortion or detention event. The typical coverage provided may include territorial exclusions, low limits, restrictive conditions, narrow triggers and limited operative periods. In contrast, kidnap and ransom insurance provides specialist, comprehensive protection tailored specifically for critical security incidents, supported by crisis management support teams.

Willis' kidnap and ransom insurance provides coverage 24 hours a day, 365 days a year on a worldwide basis, often without territorial exclusions.* The policy limits usually apply per insured event, and clients can benefit from unlimited access to specialist crisis‑response consultants throughout any core insured incident, with certain wording extensions subject to sub‑limits.

Kidnap and ransom insurance can provide comprehensive protection against core perils such as kidnap-for-ransom, unlawful detention, extortion and hijack, while reimbursing associated insured losses, including ransom payments, legal liability, additional expenses, personal accident benefits and specialist crisis response fees. Policies are often highly modular and can be tailored to an organization’s risk profile, with optional extensions for threats such as disappearances, hostile intimidation, express kidnaps, blackmail, stalking, security evacuations, product-related extortion and more.

The cost of kidnap and ransom insurance will vary based on the risk profile of an organization, the coverage limits and levels that have been selected. Key underwriting factors include employee headcount or travel in medium/high risk territories, location of expatriate personnel and previous loss/threat history. Security measures put in place to protect staff and evidence of effective crisis management planning and travel security protocols are risk-mitigating steps which will be considered in the underwriting process.

Organizations can strengthen their preparedness and reduce the likelihood or impact of security incidents by developing robust crisis management plans, regularly reviewing travel security protocols, and engaging specialist support such as Alert:24, WTW’s security and crisis management advisory practice which provides crisis‑management consultancy and training.