Benefits of Kidnap and Ransom Insurance
Benefits of Kidnap and Ransom (K&R) Insurance
Kidnap and ransom insurance can come as part of a corporate insurance portfolio or as a standalone insurance policy. Its importance remains high because drug dealers, kidnappers, and pirates make sure of that. But what does a kidnapping insurance do anyway? Here we are going to take a look at the ways in which a kidnap and ransom insurance can benefit you.
What is Kidnap and Ransom Insurance?
Before we get down to what is K&R insurance, it is important to take a look of some of the facts. For instance, there are 18,000 to 20,000 reported kidnappings worldwide every year. The exact number of kidnappings is impossible to tell because many of them go unreported. The only way to keep yourself or the employees of your organization safe is by opting for a kidnap and ransom insurance, which is designed to help an individual or an organization minimize the financial loss due to a kidnapping. In the case of a kidnapping, illegal detention or extortion, the beneficiaries are able to receive immediate access to experienced consultants who are specially trained to deal with such situations, both locally and in foreign countries, which results to a greater possibility of the hostage’s release.
The costs that are covered under the kidnapping insurance include:
- The ransom amount.
- Any loss of the ransom while in transit.
- Any legal fees or associated costs during the negotiation process.
- Fees for a specialist response consultant (if any).
Other Benefits of Kidnap and Ransom Insurance
Offers a Sense of Relief
Knowing that someone who you care about dearly has been kidnapped can be a highly stressful experience. In the heat of the moment, your family would agree to pay any amount of ransom necessary for their loved one’s safe release. But, with a K&R insurance policy, you don’t have to go about it alone. While anybody would pay the ransom if it meant the release of someone they love and care about dearly, regardless of what the amount is, agreeing to pay the amount has far reaching affects on your personal finances. This is the main reason why a kidnap and ransom insurance is so beneficial in this unfortunate situation. Investing in a kidnap and ransom insurance plan ensures that your loved ones or your employer has the financial backing in place to cover the expenses in a time of need.
Tax Savings with Kidnap and Ransom Insurance
Let’s be clear, every investment that you make when taking out an insurance policy helps you save money in the long run. Similar to other insurance policies, when you buy a kidnap and ransom insurance and start to pay your premiums you are able to enjoy annual tax savings as well. There are basically two main advantages of getting a kidnap and ransom insurance. One is you get to protect yourself and your loved ones or employer from financial strain, and secondly, you can make significant savings in tax cuts.
As incidents of kidnap, ransom and extortion become more of a reality, it makes sense to take out a kidnapping insurance for the safety of yourself and your loved ones.
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