Kidnap & Ransom Insurance

Kidnap & Ransom Insurance

Kidnap for Ransom and Extortion schemes are just a few of the harsh realities in today’s world. To assist individuals in protecting their lives and their assets; we provide coverage for corporations, their employees and their assets, we offer protection to insure against: Kidnapping, Bodily Injury, Extortion, Property Damage Extortion, Product Contamination Extortion, and Trade Secret Extortion.

Kidnapping at sea is a very serious issue today. Not only is this a major threat to large corporations transporting millions of dollars in products by sea, but the lives of innocent individuals have been taken by pirates.

Reward in business comes from taking risks but the most successful businesses are those that analyze their risks carefully and take steps to protect against them. It would be relatively straight forward if companies were exposed only to day to day commercial and competitive threats, however many business hazards today are far more difficult to protect and quantify.

Kidnap for Ransom, Extortion and Detention are real dangers for companies operating both overseas and in domestic markets. They are often overlooked by management on the grounds that “it won’t ever happen to us”, but the damage this can inflict on a business can be very severe – as the annual roll call of corporate and individual victims around the world testifies.

Kidnap/Alleged Kidnap
Bodily Injury Extortion
Property Extortion
Product Contamination Extortion
Trade Secret/ EDP Extortion

Ransom Extortion Monies
In-Transit /Delivery
Judgements, Settlements, Legal Cost
Death And Dismemberment


Usually None


Salary Expenses
Personal Financial Loss
Medical Costs
Rest & Rehabilitation
Travel & Accommodations
Loan Interest
Forensic Analysis
Other Reasonable & Necessary Expenses

Revenue of the Insured
Location of Covered Person(s)
Profile and Prior Incidents

Business Interruption
Products Recall
Value of Products

Kidnap Outcomes

Most kidnaps are carried out in order to obtain a ransom, and in most cases a ransom is paid. Rescues are rare, largely because the authorities in most countries recognize that the safety of the victim is paramount. While the average occurrence of deaths following a kidnap is 9%; this almost always is at the time of abduction rather than during the negotiation.


Kidnap Demands

Demands can be huge, with more than 14 countries recording cases of $25m or more in recent years. Kidnappers usually settle at between 10 and 20 per cent of the demand, except in the old Soviet Union where the Mafia is extremely reluctant to negotiate and uses excessive violence to achieve its aims.

Kidnap Payments

While most ransom payments are kept confidential, we are aware of some substantial sums that have been paid. Latin America features heavily in the list, but many of the largest settlements have been made in Europe. Recent years have seen a noticeable increase in average ransom payments.