K & R (KIDNAP & RANSOM)

The aim of a Kidnap & Ransom [K&R] insurance policy is to provide an organization with support and financial reimbursement in the event of kidnap, extortion, detention or hijack of a member of the organization.

An organization sending their staff, volunteers or contractors overseas, particularly to more troublesome areas has a duty of care. Whilst there should be suitable risk management such as training and specific protocols including exit plans, K&R insurance can be part of the overall mix of deploying people overseas.

K&R insurance policies can be tailored to the needs of an individual organization but some of the common covers include: The cost of reimbursement of a ransom payment [including any interest on loans required to generate the liquidity required to pay the ransom]. It is important to note the reimbursement element rather than payment of the ransom demand, Costs of replacing a ransom payment lost in transit, Costs and expenses of response consultants to assist with incident handling, A wide range of costs including legal, security, travel, rehabilitation, psychiatric and medical.