Kidnap, Ransom and Extortion

Kidnap, Ransom and Extortion

Kidnapping and extortion are significant threats to organizations and those who serve them around the world. Most vulnerable are organizations with employees based or traveling overseas, but those with high profiles or with operations that handle large amounts of cash, or that work with sensitive information, or technology, are also at risk. Properly managing a kidnapping, extortion or other crisis event is essential in protecting the life and well-being of a victim as well as an organization’s assets. 

Kidnap and Ransom (K&R) insurance protects organizations against the financial loss that can arise when an employee is seized or detained for ransom or in the face of extortion. Backed by unparalleled consultant, medical, and emergency travel assistance services, we lend organizations the experience and resources typically not provided in-house to manage and resolve these incidents successfully.

*Coverage may not be available in all jurisdictions and is subject to actual policy language.

Coverage Highlights

    • Extends the definition of insured to include officers, directors and employees, their guests, relatives, and any person delivering or handling ransom money
    • Encompasses a broad range of claims including:
      – Kidnapping
      – Wrongful Detention
      – Extortion (against persons and property) 
      – Hijacking
    • Applies coverage to employees and relatives around the clock, whether business related or otherwise 
    • Immediately reimburses the insured for expenses/ransom once a covered crisis is over and receipt of payments made are received 
    • Provides clients with unparalleled consultant, medical and emergency travel assistance services in conjunction with our service partners:
      – Travel Guard;
      – NYA International; and
      – Edelman
    • Offers 24/7 access to in-house claims personnel dedicated to K&R related claims
    • Available on PortfolioSelectSM

Claims Scenarios

    • A company sends an employee to visit Brazil and explore a new business opportunity. On the third-day of the visit, the employee is kidnapped and the company is notified that the employee is being held for a ransom of $1 million. The company immediately calls the AIG 24/7 emergency hotline and two NYA International consultants are sent to work hand-in-hand with the company’s crisis management team. After five days of negotiations, the employees are released for a ransom of $500,000. The company submits its proof of loss to AIG and is reimbursed the ransom amount in full. 
    • The patriarch of a wealthy family living overseas received several calls at his office demanding he disclose documents and information about his business and send $1 million. The extortionists told the patriarch that if he did not meet their demands, they would release information about his business and/or kidnap his 18 year old daughter. The patriarch called the AIG 24/7 emergency hotline and NYA immediately deployed to the patriarch’s residence. NYA provided a complete risk assessment of the patriarch’s residence and business, and protocols for handling future call. NYA continued to monitor the matter, but no further calls were received.

* The scenarios summarized above are offered only as examples and are not intended to represent an actual claim or insured.  Coverage depends on the actual facts of each case and the terms, conditions and exclusions of each individual policy.

AIG Links