The Near Impossibility Of Kidnap/Ransom Insurance


PUBLISHED ON: June 11, 2009

You may have kidnap, ransom and extortion insurance and not even know it. You may have it and know it but not be able to use it. You may very well need it–pirates, drug dealers and other opportunists around the world make sure of that. But it’s just about the most contradictory, confusing insurance there is. Here is what every executive should know about it.

Kidnap/ransom coverage can come as part of a corporate insurance portfolio or as a stand-alone policy. It can include coverage for guests, spouses and relatives, or just a single individual. In any event, it often begins with a paradox and ends with a Catch-22.

The paradox: With many policies, a covered employee (or employees) cannot know that the coverage exists for them or the corporation. If they are aware that it exists, the policy may be declared void.

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