What to Look for in a Kidnap, Ransom & Extortion Insurance Policy
Author: Kevin Henry: Divisional Assistant Vice President, Great American Fidelity / Crime
When considering a Kidnap, Ransom & Extortion (K&R) insurance policy, there are several key factors to keep in mind. Here’s a breakdown of what to look for:
Is the insurance policy on admitted or non-admitted paper?
The K&R market in the United States is mature and most K&R insurance policies are written on admitted paper with no excess/surplus lines taxes.
Is the policy territory coverage worldwide, including coverage for the United States?
Some K&R polices exclude 15+ countries, including the United States. As a rule, a good K&R policy should be worldwide* (including the U.S.), with few or no excluded countries.
Does the policy include broad covered person language, including coverage for family members, guests, independent contractors, students, and volunteers?
The policy should automatically provide a wide umbrella of coverage for the people who work within the organization.
Does the K&R policy provide 24/7 coverage, no matter company or personal travel?
Some K&R policies only cover employees while traveling in the scope of their duties, but a good K&R policy should provide coverage at all times, no matter the reason for travel.
Does the K&R policy include important endorsements for Disappearance, Threat Response, Child Abduction, Business Interruption, and Security Evacuation?
A good K&R policy should automatically include all the necessary endorsements.
Does the K&R policy provide full limit coverage for Kidnap, Extortion, Detention, Hijack, Hostage Crisis and Express Kidnap?
Some K&R policies add sublimits for some insured events.
Does the insurance carrier have a dedicated claims team for K&R related incidents?
K&R claims are complex and require experienced and dedicated claims personnel.
Does the K&R policy include coverage for a Security Consultant that has response capabilities in the countries where your client has travel or operations?
The response firm included in the policy should have the ability to respond worldwide, have open visas for countries where they are required, have in-house language capabilities, and use full-time, dedicated response consultants.
Selecting the right Kidnap, Ransom & Extortion insurance policy is crucial for safeguarding individuals and organizations. With the key factors listed above and the help from our Fidelity / Crime team, we can assist you in determining the best fit for your needs!
*Unless prohibited under U.S. law (on the OFAC list of sanctioned countries).
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