Kidnap and Ransom Insurance (K&R Insurance) Policies

Kidnap and ransom insurance (K & R insurance) is a form of insurance that was developed to protect both individuals as well as corporations that operate in what are deemed high-risk areas across the globe. Examples of these places include Afghanistan, Haiti, Mexico, Nigeria and Venezuela. Other high-risk areas include the Middle East and some of the countries in Latin America.

Kidnap and ransom insurance (K & R insurance) is a form of insurance that was developed to protect both individuals as well as corporations that operate in what are deemed high-risk areas across the globe. Examples of these places include Afghanistan, Haiti, Mexico, Nigeria and Venezuela. Other high-risk areas include the Middle East and some of the countries in Latin America.

K & R insurance policies cover not just kidnappings but also hijackings, wrongful detainment and detention as well as extortion. The policies are indemnity insurance policies. What this means is that a loss is reimbursed that is incurred by the insured party.

It is worth noting that this type of insurance policy is not used or intended as a means to pay a ransom. How it works is that when a ransom occurs the insured individual must pay the ransom money and incur a loss. After that the individual can then seek to be reimbursed by the kidnap and ransom insurance policy.

The losses that are most often reimbursed by K & R policies include loss-of-ransom-in-transit, additional expenses such as medical expenses and ransom payments. In most cases these policies also indemnify personal accident losses that occur in the commission of a kidnapping. These accident losses take into account permanent total disablement of the kidnapped individual, death and dismemberment. The coverage also generally pays for the expenses and fees connected to the hiring of crisis management consultants. The job of a crisis management consultant is to offer advice and suggestions as to how the insured individual should respond to the situation at hand.  Kidnap and ransom insurance polices can be written to cover families as well as large or small corporations. Some policies of this sort cover kidnap prevention training.

The two main types of K & R policies are ASM CP (Corporate Protection) and SRP (Special Risk Protection). The former protects those who are employed in publicly-owned commercial organizations regardless of their size or worth while the latter protects individuals, private families and small groups of shareholders.

Both of these policies take into account three essential elements. The elements include prevention of the crime, financial reimbursement of costs if the crime occurs and guaranteed and immediate access (as previously mentioned) to qualified specialist kidnap response consultants. To learn more about kidnap and ransom insurance ((K & R insurance) do a Google search over the Internet.