The combination of political unrest, poverty and lawlessness are the main reasons that kidnappings have increased. Types of Policies That Can Be Purchased Kidnap and ransom insurance is not a new product. However, at that time it was primarily reserved for only a few companies or individuals that fit certain criteria, such as great wealth or business overseas in dangerous locales. Policies for Corporations Many insurance companies offer such coverage through the business or as stand-alone policies. In addition, crisis management services are often included in kidnapping policies.
Insurers keep firms that specialize in crisis management on retainer.
These firms are not just reactionary, rather they take a proactive approach towards the prevention of kidnappings by helping clients and risk managers avoid situations from occurring in the first place. The premiums for these policies vary, depending upon the extent to which the policyholder is at risk. The more attractive a company is, based on these and similar criteria, the higher the premium will be. It is important to note that, once a kidnapping insurance policy has been written, disclosure of information in any forum, public or private, regarding the existence of the policy by the insured may be grounds for rescission of the policy. Policies for Individuals Because only 60 percent of Fortune 500 companies and far fewer smaller companies carry any kind of kidnap and ransom insurance for their employees, one insurer has now begun offering in some states kidnap and ransom insurance automatically as part of a homeowners policy at no extra charge.