DEFINITION of 'Kidnap Insurance'

A type of insurance designed to protect individuals from the risk of kidnapping. Kidnap insurance often covers other events related to kidnapping, including extortion. In the case of a kidnapping, the policy holder is compensated for money paid as ransom, medical expenses, counseling or for accidental death of the kidnap victim.

BREAKING DOWN 'Kidnap Insurance'

Kidnap insurance is more likely to be used for individuals or companies operating in high-risk areas. These areas tend to have higher rates of crime and a history of kidnapping workers employed by multinational firms. Some of the common high-risk areas include Nigeria, Haiti and Venezuela.

RELATED TERMS
  1. Insurance Fraud

    An illegal act on the part of either the buyer or seller of an ...
  2. War Risk Insurance

    A policy that provides financial protection against losses sustained ...
  3. Accidental Death Benefit

    The payment due to the beneficiary of an accidental death insurance ...
  4. Cumis Counsel

    Legal counsel chosen by the insured when the insurer has a conflict ...
  5. Cover Note

    A temporary document issued by an insurance company that provides ...
  6. State Guaranty Fund

    A fund administered by a U.S. state to protect policy holders ...
Related Articles
  1. Insurance

    Why Expatriates Need Kidnap and Ransom Insurance

    Here's why kidnap and ransom insurance is something expats or business travelers should consider.
  2. Insurance

    Do You Need Kidnap & Ransom Insurance?

    Americans working abroad – and high-profile individuals traveling frequently in kidnapping hot spots – should consider this type of protection.
  3. Insurance

    A Guide To Kidnap & Ransom Insurance

    Every year, thousands of people are kidnapped for ransom all over the world. This insurance offers protection – and peace of mind.
  4. Insurance

    Unique Insurance Policies You Should Consider

    You may have basic insurance plans for your car and your home, but check out these unusual – but still practical options.
  5. Insurance

    5 Bizarre Insurance Policies

    If you can dream up a risk, you can probably insure it. From interesting to bizarre, here are five of the weirdest insurance policies.
  6. Managing Wealth

    How the Ultra Rich Can Stay Safe

    Kim Kardashian West is a reminder that visibly rich folks are targets. Here's how they can protect themselves.
  7. Investing

    The Next Exotic Place to Hide Your Cash... USA! USA!

    Worldwide, people are pulling their money out of tax havens like Bermuda and Switzerland, and shifting them into state trusts in the United States for privacy and personal safety reasons.
RELATED FAQS
  1. What is the average return on total revenue for the insurance sector?

    Learn about the three main segments of the insurance industry, and find out what the average return on revenues is for the ... Read Answer >>
  2. Can your insurance company cancel your policy without notice?

    Learn about your rights as an insured when it comes to your insurance policy being canceled, including how to access your ... Read Answer >>
  3. Which insurance policies do I really need?

    Your needs for insurance depend on your situation and can't be generalized for everyone, but there are a lot of options available. ... Read Answer >>
  4. What are examples of the largest companies in the insurance sector?

    Read about some of the largest and most influential companies in the insurance sector, a list that includes Berkshire Hathaway ... Read Answer >>
  5. Can companies insure their accounts receivable?

    Understand what credit insurance is and how it protects companies against payment problems they may encounter in trying to ... Read Answer >>
Hot Definitions
  1. Current Ratio

    The current ratio is a liquidity ratio measuring a company's ability to pay short-term and long-term obligations, also known ...
  2. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
  3. Quantitative Easing

    An unconventional monetary policy in which a central bank purchases private sector financial assets in order to lower interest ...
  4. Risk Averse

    A description of an investor who, when faced with two investments with a similar expected return (but different risks), will ...
  5. Indirect Tax

    A tax that increases the price of a good so that consumers are actually paying the tax by paying more for the products. An ...
  6. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
Trading Center