K&R Insurance plans typically include the following types of coverage: Ransom or extortion payments, consultant costs such as Crisis Management and Security Consultants, and coverage for death and dismemberment. K&R 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.
In most kidnapping scenarios, the perpetrators demand that the victims avoid notifying other parties. A ransom is not paid out directly by the insurer, but rather the family (or employer) that pays. A specific notification provision typically says that the policyholder, employer, or family should notify the insurer and the police about a kidnapping only when it is safe to do so.
Once the insurer is contacted, they act immediately and deploy specialists to assist in the release of the kidnapped individual. This assistance can include negotiations with the kidnappers, delivery of a ransom, evacuation, and appropriate care.
Once the crisis is over, the insurer will reimburse the policyholder for the ransom and related expenses. If total costs go beyond a specific limit, the policyholder is responsible for covering the extra costs.
For those traveling to certain foreign countries, high-net-worth individuals, and famous people, K&R insurance is most likely necessary in the case of covering any ransom costs. At Daigle and Travers, we can provide you with options for kidnap and ransom insurance policies so that you can select the type of policy that you decide is right for you.