Kidnap and Ransom Insurance Payments – How they Work

It is illegal to insure an unlawful event and therefore the benefits paid out by a kidnap and ransom policy are structured in such as way as to not break the law. It is for this reason that ransom benefits, regardless of which insurer used, will always be provided on a reimbursement only basis.

This means that a Kidnap and ransom policy does not pay ransoms on the behalf of the insured. The insured must first pay the ransom and then request insurers reimburse these expenses.

This basis of cover is also of particular help when negotiating with Kidnappers who normally want a quick settlement. Typically individuals and companies will have their assets tied up in property and other long term investments, and whilst they may have a high net worth, their access to ready cash is limited. Access to ready cash, even if it is less than the amount demanded can speed up negotiations and result in an early release.

For further information about Kidnap and Ransom Insurance please call K&R Expert on 01825 745 410.