Successful individuals and families face an increased risk of being exposed to ransom, kidnapping, extortion, and cyber threats. This article will discuss some considerations related to this type of insurance.
Some categories of individuals and businesses that may want to consider ransom insurance include, without limitation:
In most ransom, extortion, and kidnapping scenarios, the criminals typically demand that the victims avoid notifying any other parties. In this situation a ransom is not paid out directly by the insurer, but instead by the family (or employer). A specific notification provision typically says that the policyholder, employer, or family should only notify the insurer and the police about the kidnapping when it is safe to do so.
After the insurer is contacted, they immediately will deploy specialists to assist in the release of the kidnapped individual. Assistance can typically incude negotiations with the kidnappers, delivery of a ransom, evacuation, and the appropriate care for those involved.
Once the crisis is over, the insurer will reimburse the policyholder for the ransom and the expenses related to the incident. Although the insurer reimburses the policyholder, if the total costs go beyond the policies specific limit, the policyholder is responsible for covering the extra costs.
Ransom insurance plans typically include the following types of coverage:
Kidnap & Ransom insurance is designed to reimburse the loss suffered to you for the ransom money you paid in the event of a kidnapping. It will not pay the kidnapper directly.
What you might pay per year on ransom insurance depends on a variety of factors. Some of these include the types and amounts of coverages that you select, the benefits amount you select, the nature of your business, and the age, gender, and health of the insured along with the number of people included in the coverage.
At Cross Private Client Insurance, our agency understands the unique risks that come with being a high-net-worth individual and family. We work with top insurance carriers to provide insurance options for our clients. Reach out to your local office to request a quote based on your specific needs.
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This article is for general informational purposes only and is not to be relied upon or used for any particular purpose. Cross Insurance shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, insurance, accounting or other professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article are that of its author and do not necessarily represent the views of Cross Financial Corp. and its subsidiaries and affiliates (“Cross Insurance”) or Cross Insurance’s management or shareholders.