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A Guide to Kidnap and Ransom Insurance Coverage

Katrina Ávila Munichiello is an experienced editor, writer, fact-checker, and proofreader with more than fourteen years of experience working with print and online publications.

Kidnapping for ransom incidents are chronic problems around the world because they can be an incredibly lucrative business for the perpetrators of these crimes. Kidnap and ransom ( K&R ) insurance is supposed to save people from having to give up their fortunes to protect their family members. However, it is clearly not appropriate for everyone. Before you decide to buy kidnapping insurance, you need to consider several important factors. You must understand how it works, know what it covers, and learn what it typically costs.

Key Takeaways

• Americans traveling to certain foreign countries, high-net-worth individuals, and famous people are most likely to need K&R insurance.
• Kidnap and ransom insurance provides negotiators and eventual reimbursement, but the victims must pay the ransom with their own money before it can be refunded.
• A basic K&R policy typically covers ransom payment, loss of income, interest on bank loans, and medical care.
• Some basic policies cost only $500 a year, but the price rises as coverage expands.

Who Needs Coverage

When most Americans think of kidnapping, they usually think of foreign countries. The U.S. State Department even added an indicator for kidnap risk to its travel advisories in 2019. If you frequently travel to any country on the list, you might want to consider getting K&R coverage. The prime targets are wealthy businesspeople and their families, professionals traveling abroad, tourists, journalists, and aid workers.

Kidnap and ransom coverage is often provided as part of a corporate insurance portfolio. Companies often use it when they have employees who frequently travel to areas where kidnapping is a problem. K&R insurance can include coverage for spouses, relatives, guests, nannies, housekeepers, or just a single individual.

Individuals can also purchase K&R insurance as a stand-alone policy. However, most individuals who buy it are affluent or high-profile because of the cost of these policies. Celebrities, famous musicians, sports stars, and politicians are more likely to have kidnap and ransom insurance.

Additionally, nongovernmental organizations (NGOs), universities with international programs, and other institutions often purchase these policies. Such organizations could face lawsuits if their workers, volunteers, or students were harmed.

How Kidnap and Ransom Insurance Works

In most kidnapping scenarios, the perpetrators demand that the victims avoid notifying other parties. That can be quite challenging, leading to complications when the employer or family needs to contact the insurance company. For this reason, many K&R policies include a specific notification provision. It says that the policyholder, employer, or family should notify the insurer and the police about a kidnapping only when it is safe to do so.

Once contacted, the insurer immediately swings into action, deploying specialists to assist in the release of the kidnapped individual. This assistance includes negotiations with the kidnappers, delivery of a ransom, evacuation, and appropriate care.

However, a ransom is not paid out directly by the insurer. Instead, the employer or family has to pay it out of pocket or take out a loan. Note that most K&R policies cover the interest on money borrowed for this purpose. Once the crisis is over, the insurer will reimburse the policyholder for the ransom and related expenses. If total costs go beyond a specific limit, the policyholder is responsible for covering the extra costs.

What Is Covered

K&R insurance protects corporations and individuals against financial losses that result from kidnapping, extortion, and ransom demands. It is designed to insure those who frequently travel, not for brief trips. A basic policy typically covers ransom payment, loss of income, interest on bank loans, and medical care. Many policies also cover the costs of business interruption, consultants for crisis management , support services, and even public relations expenses for companies. In addition, a policy purchased by an employer covers lawsuits against the company by the employee who was kidnapped.

Some K&R policies also pick up the tab for losses due to injuries, related cosmetic surgery expenses, time off work after release, travel expenses, and reward money paid to informants. Damages due to extortion, terrorism, and wrongful detention can be covered too. In a worst-case scenario, funeral expenses may also be covered by kidnap and ransom insurance.

What Is Not Covered

As a general rule, Americans should avoid traveling to countries that appear in red on the U.S. State Department's travel advisory map . The State Department has advised Americans to avoid going to those countries, so your K&R insurance might not cover you there. Many policies provide access to security experts who can advise you on where you can travel and how to stay safe when visiting certain parts of the world.

Usually, you must stay quiet about the existence of your kidnap and ransom insurance. You should never discuss it with anyone, not even family members covered by the policy. Talking about your K&R insurance may lead to the cancellation of the policy. For the same reason, employees may be unaware of kidnap and ransom policies covering them that are purchased by their employers. Insurance companies naturally want to protect themselves against fraudulent kidnap and ransom claims . Announcing that you have a K&R policy is equivalent to wearing a shirt that says, "Kidnap Me!"

Never tell anyone that you have kidnap and ransom (K&R) insurance. Publicizing your K&R insurance dramatically raises your risk of being kidnapped and may void your policy.

The Cost of Coverage

Some policies cost as little as $500 a year, but the price rises quickly. It depends on the type of coverage, benefit amounts, destination countries, and the number of people covered. The cost might be roughly $2,000 for a $5 million policy that covers a year of nonhazardous travel. If the insured is traveling to hot spots, then the price tag goes up. However, K&R insurance could be worth the expense in the case of an actual kidnapping. A kidnap and ransom claim can quickly run into the hundreds of thousands or even millions of dollars.

The Bottom Line

K&R insurance protects corporations and individuals against financial losses that result from kidnapping, extortion, and ransom demands. Although these policies are often complicated and sometimes expensive, they are an absolute necessity for employees or high-net-worth individuals traveling to areas where the kidnapping risk is high.

Risk Management Insurance Review. " Kidnap and Ransom Insurance: A Strategically Useful, Often Undiscussed, Marketplace Tool for International Operations ," Page 430.

Insurance Information Institute. " Insuring Against Employee Kidnapping and Ransom ."

U.S. Department of State. " Introduction of K Risk Indicator ."

Risk Management Insurance Review. " Kidnap and Ransom Insurance: A Strategically Useful, Often Undiscussed, Marketplace Tool for International Operations ," Page 431.

Travelers. " Kidnap and Ransom Coverage ."

Risk Management Insurance Review. " Kidnap and Ransom Insurance: A Strategically Useful, Often Undiscussed, Marketplace Tool for International Operations ," Page 433.

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Kidnap and Ransom Travel Insurance

This highly specialized travel insurance plan type provides protection against kidnap, ransom, and extortion losses for corporate employees. These plans are employer-sponsored plans purchased to protect employees and the corporation against financial losses.

What makes kidnap and ransom travel insurance unique?

This type of travel insurance protects corporations against financial losses that result from kidnapping, extortion, or ransom demands while also providing leading crisis management support services.

Focus is on kidnap, ransom, and extortion demands

This highly specialized type of travel insurance focuses first on having the funds and assistance available to navigate the problem and/or meet the demands of kidnappers when a corporate employee is held for ransom.

Some plans cover foreign commercial liability

Some plans include commercial liability coverage to protect against financial losses that can occur when doing business in a foreign country, including worker’s compensation, auto liability, and political risks such as embargo, confiscation, and more.

Some plans have a few extras

Some plans include coverage for medical expenses.

Why would you need Kidnap and Ransom travel insurance?

• Your employees frequently travel in kidnap-prone regions of the world and you want protection for potential losses.
• Your business hires foreign workers and you want protection for workers compensation claims as well as protection against employee theft, forgery, and robbery of corporate assets .
• Your employees frequently hire and/or drive automobiles in a foreign country and you want liability protection in case of an accident.

What coverage is included in kidnap and ransom travel insurance?

Kidnap and ransom plans typically include the following types of coverage:

• Coverage for death and dismemberment, ransom or extortion payments, recall costs, business interruption costs, consultant costs, and more related to corporate kidnapping.
• Coverage for  financial losses due to kidnapping, extortion, or ransom demands while also providing leading crisis management support services.
• Corporate liability protection against employee theft, forgery, or robbery of corporate assets.

Who should buy this type of travel insurance?

This is employer-sponsored travel insurance and it should be purchased by employers who:

• Employ high-profile executives who travel frequently on international business. If your or your employees are traveling in high-risk areas, this coverage can protect against kidnap and ransom, foreign commercial liability, and more.
• Hire foreign workers. This coverage provides coverage for employee theft, robbery and forgery of corporate assets overseas.
• Send their employees overseas where they hire and/or drive rented or corporate vehicles. This coverage provides protection for corporate liability in the event of a traffic accident or collision involving an employee traveling on corporate business.

How much does this travel insurance cost?

Kidnap and Ransom is highly unique travel insurance and the factors that affect cost are varied. Some factors that affect cost are:

• Choice of benefit amounts
• Number of employees
• Destination countries
• 4 Steps to 100% confidence in your travel insurance plan

Where should you buy your travel insurance?

You have two options for buying travel insurance – the best option is to compare plans from all companies, get quotes, and purchase your travel insurance plan online:

• Compare plans from all companies: Compare travel insurance plans from all companies, get quotes, and buy online.
• Quote and buy direct: Review the travel insurance companies and plans and purchase directly from the company.

All travel insurance companies include a free look period with a refund that lets you review the plan documentation. If you decide you need something a little different, you can make changes to your policy or cancel it for a refund (minus a small fee).

• This is highly specialized travel insurance purchased employers to cover their losses
• Most plans have flexible benefit choices that let you choose the benefit amount
• High-risk destination countries can affect the premium
• Use our travel insurance comparison tool to find kidnap and ransom plans and to compare prices

DamianTysdal

Damian Tysdal is the founder of CoverTrip, and is a licensed agent for travel insurance (MA 1883287). He believes travel insurance should be easier to understand, and started the first travel insurance blog in 2006.

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CrisiSolution ® (Kidnap, Ransom & Extortion) Insurance

Coverage and response services to help meet your Duty of Care obligations.

Why choose AIG for CrisiSolution Insurance?

While rarely publicized, crisis events like kidnap for ransom, extortion, wrongful detention, and security evacuation are increasing—particularly as international business opportunities and leisure travel expand. Additional assault threats now call for comprehensive coverage that protects employees and their families from a range of perils at the office and abroad.

AIG provides 200+ claims professionals globally who speak local languages and understand local laws and customs. CrisiSolution provides worldwide primary and excess coverage for kidnapping, extortion, wrongful detention, hijacking, threat, disappearance, and hostage events, and other crises for corporate businesses, individuals, and high-net-worth families.

The AIG Advantage

AIG’s global network spans over 215 territories with 24/7 access to best-in-class global crisis prevention and response experts. We engage with global crisis management response and consulting firms that include Crisis24 and MBL Global for planning, training, and crisis management support.

Global Reach & Local Expertise

With experts embedded across the globe with local market knowledge and insight, we deploy teams from strategic locations for timely responses, regardless of operational environment or crisis complexity.

Innovative Crisis Management

We draw on vast crisis management education and training resources to help prepare clients—large and small—for emerging threats.

AIG GlobalWatch app is our online security risk portal and 24/7 hotline for global crisis prevention and response.

Deep Claims Experience

By leveraging 40+ years of crisis management leadership from more than 2,000 claims worldwide, we apply insight that evolves and improves global KR&E solutions to meet emerging client exposures.

Global Reach and Local Expertise

• Embeds crisis solution experts across the globe to support clients with local market knowledge and insight 
• Deploys response teams from strategic locations worldwide for timely responses, regardless of operational environment or crisis complexity
• Engages with global crisis management response and consulting firms including Crisis24 and MBL Global for planning, training, and crisis management support
• Tailors crisis management solutions to protect clients against a broad range of security threats in high-risk industries including energy, mining, multinationals, NGOs
• Provides access to AIG GlobalWatch assistance app, our online security risk portal, and 24/7 hotline for best-in-class global crisis prevention and response services 
• Draws on vast crisis management education and training resources to help prepare clients—large and small—for emerging threats
• Provides 200+ claims professionals globally who speak local languages and understand local laws, customs, and cultures 
• Addresses claims needs by leveraging 40+ years of crisis management leadership and insight from more than 2,000 claims worldwide 
• Applies claims insights to evolve and improve global KR&E solutions to meet emerging client exposures

Advantages in Action

A global business with both local nationals and expats operates in a country where the political environment quickly became unstable.

Leveraging the pre-event preparation and training provided by AIG, the client quickly deployed its crisis management and emergency communications protocols, allowing for safe evacuation and relocation of all expats and local nationals, medical treatment, and family support, as necessary.

AIG Benefit

The client was prepared to act quickly in the event of a crisis and, with the support of our emergency operations centers, relocated its employees and their families efficiently and safely.

While living abroad with their family, the spouse of a CEO believed they were being followed.

The client implemented its AIG-supported crisis plan. AIG responded immediately by sending in-person security to protect the spouse, engaging with local law enforcement, and ensuring the family’s safety.

The CEO’s spouse was kept out of harm’s way, reinforcing the continued need for a safe travel advice plan for executives and their families, including guidance for lone travelers, allowing for rapid response in the event of an emergency.

A former employee dismissed for gross negligence made specific threats against the company’s current employees.

The client immediately contacted AIG, who engaged Crisis24—a specialized crisis prevention and response consultancy that worked with the client’s crisis team to increase security awareness and employee safety. In addition, local police were engaged, extra security was provided, and protocols were established to report potential active shooter incidents for early intervention.

The client was prepared to quickly respond to the threat through its preparedness training supported by AIG’s claims professionals and Crisis24.

AIG KR&E Solutions

We tailor our KR&E coverage to specific requirements, serving high-risk industries like energy and mining, maritime, multinationals, charities, and NGOs. Supplemental endorsements are also available for child abduction, evacuation and repatriation, express kidnapping for an event lasting less than 24 hours, value of products, business interruption, and stalking.

CrisiSolution

CrisiSolution® is AIG’s main Kidnap & Ransom insurance policy. We also offer coverage through AIG’s WorldRisk Foreign Commercial Package, AIG’s Private Client Group, and endorsement on private and not-for-profit D&O policies.

Covered Expenses

• Kidnap and ransom
• Wrongful detention

Additional Extensions

• Active shooter and workplace violence (assault)  (PDF)
• Disappearance
• Child abduction
• Evacuation and repatriation
• Express kidnapping for an event lasting less than 24 hours

CrisiSolution Product Profile  (PDF)

Crisis Prevention Support and Services

Aig travel®.

Helps CrisiSolution® policyholders address emergency travel needs with expedient, expert care:

• U.S. capabilities of the AIG Travel security team
• 24/7 worldwide travel assistance
• AIG GlobalWatch assistance website and mobile app

Response and consulting services, including but not limited to:

• Crisis management capability building
• Security risk management
• Training including simulated workshops
• Cyber security risk management
• Travel risk management

Post-event trauma incident management and counseling services

• Managed trauma counseling services in over 190 countries
• Assistance in 70 different languages
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Crisis Prevention and Response Services (PDF)

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Downloadable Materials

Download pdf [157.4 kb], download pdf [1.1 mb], download pdf [803.3 kb], download pdf [95.4 kb], download pdf [50.5 kb], what is kidnap, ransom, & extortion insurance.

The primary purpose of kidnap, ransom, and extortion (“KR&E”) insurance is to protect companies and families against the high costs associated with a kidnapping. These incidents are typically enacted to extort high sums of money from those insured. Though high-wealth individuals and their families are often targeted, individuals who work for large, lucrative companies may also be at risk—particularly with foreign business travel. For this reason, many coverage options now extend to employees and their families.

Today, KR&E policies may also cover workplace violence, which includes active shooter scenarios. The considerable physical risks of these events are evident, but there are many hidden costs, as well. These include settlements, evacuation procedures, and rest and rehabilitation of the individuals involved.

The scenarios described herein are offered only as examples. Coverage depends on the actual facts of each case and the terms, conditions and exclusions of each individual policy. Anyone interested in the above product(s) should request a copy of the standard form of policy for a description of the scope and limitations of coverage.

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Financial Lines - Kidnap, Ransom and Extortion

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Everything You Need To Know About Kidnap and Ransom Insurance

Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.

Paul Martin is the Director of Education and Development for Myron Steves, one of the largest, most respected insurance wholesalers in the southern U.S.

When thinking about insurance, the last thing you might expect to need is coverage for kidnapping and ransom payments. While it might be shocking, kidnapping crimes are actually on the rise, as are their correlating ransom payouts. For those folks who are famous, wealthy, or otherwise just kind of a big deal, it might be a good idea to look into getting kidnap and ransom insurance.

What Is Kidnap and Ransom Insurance?

Kidnap and ransom insurance is a type of coverage designed to protect against the financial harm suffered in the event of a kidnapping. Coverage provides reimbursements for things like ransom fees, medical fees, lost wages, and for professional help in solving the crime and getting the victim home again. Kidnap and ransom insurance might even pay out a benefit if the victim is killed.

What Does Kidnap and Ransom Insurance Cover?

Pretty much all aspects of solving a kidnapping case can be funded by kidnap and ransom insurance. Coverage not only applies to the kidnap victim, but also to their family. If an employer purchases the policy, coverage will protect them in the event one of their employees is abducted.

Here are the most common coverages offered by kidnap and ransom insurance:

• Ransom payments: Coverage will pay reimbursements up to a specified limit, dictated by your policy, towards a ransom payment demanded by the criminal to get the victim released to safety. Typically, a victim’s family will first either have to pay the ransom out of pocket or take out a loan to cover the fee, rather than the insurance company providing the money up front.
• Medical fees for the victim: If a victim suffers physical injury during the kidnapping, kidnap and ransom insurance will reimburse them for medical fees. Coverage also applies to costs of psychiatric help, such as if the victim should require therapy after the traumatic incident.
• Medical fees for the victim’s family: If the victim’s family becomes physically injured or traumatized during the kidnapping, coverage will reimburse for medical fees including therapy costs and psychiatric care.
• Professional assistance fees: Crisis management teams who are responsible for solving kidnapping crimes may be called on for assistance during an incident. Crisis management teams handle things like hostage negotiations, conducting investigative research to figure out the criminal’s identity, and the development of a strategy to bring the victim home as quickly and safely as possible. These professionals may also cooperate with authorities.
• Home relocation costs: Kidnap and ransom insurance provides coverage for all aspects of the crime up until it’s fully solved, or the point at which the victim returns home safely. Transportation and other costs associated with bringing the victim home are covered.
• Salary replacement: Any loss of salary the victim suffers while being out of work may be reimbursed by kidnap and ransom coverage.
• Death benefits: In certain kidnap and ransom insurance policies, there may be coverage offered if the victim is killed. A death benefit may be paid out to the victim’s family in the event of the worst-case scenario, but this doesn’t apply to all policies.
• Public relations fees: If necessary (and depending on the policy), kidnap and ransom insurance may provide coverage for keeping news media quiet about the incident in order to protect the safety and privacy of the individual or their employer.
• Legal fees: When an employer purchases a kidnap and ransom policy, it typically includes coverage for fees resulting from lawsuits the victimized employee may file, should their business trip turn into a scene from Taken .

The coverage offered by a specific kidnap and ransom policy will vary from person to person, depending on the amount purchased. Coverage will also vary slightly for policies purchased by  individuals versus companies. Kidnap and ransom insurance is in the crime insurance family, but can be available as part of a business insurance package, as part of homeowners insurance for the wealthy, or as a separate coverage.

Who Needs Kidnap and Ransom Insurance?

Anyone who may be a target of kidnapping. If you’re famous or wealthy, unfortunately criminals might have their eye on you or your family for a big payday. We’ll take a closer look at a few specific examples of who might need this coverage.

The following individuals might need kidnap and ransom insurance:

• Celebrities
• Other famous/notorious individuals
• The extremely wealthy
• High-profile employees such as executives
• International travelers

High-profile and/or high net worth individuals, who might have something to offer a kidnapper, are at a much higher risk of being targeted than your Average Joe. Those who frequently travel to high-risk countries for business purposes are perhaps most in danger of being abducted. If you fall into one of the above categories, you might want to seriously consider getting coverage.

How Much Does Kidnap and Ransom Insurance Cost?

Well, that depends on quite a few things. For an individual purchasing coverage for themselves, premium costs might only be $500 annually if they’re not among the more high-risk categories. However, employers purchasing $5 million coverage for high-profile employees that frequently travel to risky countries might pay closer to $2,000+/year.

Coverage costs depend on a number of factors, like:

• Who purchases the coverage (i.e., a business or an individual)
• The amount of coverage needed
• The risk level of the individual(s) being insured
• The insured’s profession
• The insured’s fame/notoriety level
• The destinations the insured travel(s) to
• The insured’s home location

Basically, as with any other type of insurance, the more of a risk someone is to insure, the higher the premium they’ll have to pay. For those folks who may be at risk of being targeted, higher coverage limits could be worth the extra expense paid in the premium. Talk with your independent insurance agent about the right amount of coverage for you.

How To Find the Best Kidnap and Ransom Insurance

For the more obscure/less common types of insurance coverage out there, you might not be able to find what you’re looking for just anywhere. While our independent insurance agents may not be able to provide you with this kind of coverage directly, we’ll happily provide a list of agents in your neighborhood who have access to multiple insurance companies. You’ll walk away with the most options to find the absolute best coverage for your insurance needs.

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Kidnap, Ransom, and Extortion Insurance Explained

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Kidnapping for ransom is becoming increasingly common, especially among wealthy travelers. It can be a lucrative business for kidnappers, which offsets their concern of risk. Kidnap and ransom insurance is meant to protect individuals from losing their fortunes should they or a family member get kidnapped. It is also a vital part of a business's risk management plan.

What is Kidnap/Ransom/Extortion Insurance?

Kidnap and ransom insurance—also referred to as kidnapping insurance, ransom extortion insurance, and K&R insurance—protects individuals and businesses at a high risk of being kidnapped. It typically covers losses related to these crisis events: 

• The disappearance of an insured person
• Wrongful detention
• Security Evacuations
• Hostage situations
• Active shooters
• Workplace violence/assault
• Child abductions
• Evacuation and repatriation

Threats to kill, injure, or destroy property or divulge confidential or proprietary information in exchange for a ransom is also a covered peril on most kidnapping insurance policies. 

Who Needs Kidnapping Insurance?

Who might need this coverage?

• High net-worth individuals (business executives, CEOs, billionaires, etc.)
• Famous people (celebrities, musicians, athletes)
• Americans traveling outside the United States (travelers, journalists, aid workers)
• Universities/international programs
• Organizations to protect their key employees
• Nonprofit organizations
• Healthcare facilities

Any business or individual who frequently travels to dangerous areas around the world is putting themselves at risk. Most experts recommend individual coverage of at least $50,000 to $1 million per incident. Organizations should obtain coverage between $1 million and $10 million to protect their employees while traveling both domestically and abroad.

What Does a Kidnap and Ransom Policy Cover?

K&R covers the reimbursement of a ransom payment and other financial losses, up to your coverage limits. It can also cover:

• Psychiatric + mental health care (rehabilitation)
• Crisis response services
• A security team to reduce the risk of incidents
• The cost of public relations services
• The cost of crisis management
• Business interruption/loss of income
• Travel and accommodation costs
• Judgments, settlements, and defense costs
• Death and dismemberment (funeral expenses)

What is Excluded from Kidnap/Ransom Insurance?

If you travel to a country that the U.S. State Department  has deemed unsafe and has a high risk of kidnapping, it may not be covered. Likewise, countries that the United States has political sanctions against may be excluded from coverage.

Secondly, ransom coverage must be kept secret from friends, family, and sometimes other people covered under the plan. Why? Announcing that you have K&R insurance protecting you is an open invitation for someone to kidnap you for the money. It heavily increases the risk of you being in danger. If your insurer finds out that you as the insured “advertised” your coverage, they may cancel your policy.

Even worse, if it's found that you talked about the insurance, they could opt to not pay your ransom. If that happens, your business or family could be left in financial ruin.

How Does Kidnap, Ransom, and Extortion Insurance Work?

If you are the individual or organization dealing with the crisis, only contact your insurance company once it is safe for you to do so. Most insurers recognize that the threatened person/businesses are often warned not to reach out to authorities, so most companies allow this clause.

Once your insurance company is aware of the kidnapping, they deploy a security consultant, negotiator, and crisis response team to help guide you through the operations. K&R policies still require you to pay the initial ransom (or take out a loan to do so) and you are reimbursed up to your policy's limits. It will also cover the interest on loans. If the ransom amount requested exceeds your policy limits, you are responsible for the extra amount. 

Your kidnap/ransom insurance policy will also help handle public relations if the incident is high-profile.

Example : You are the CEO of a high-profile organization which makes you a common target for kidnap/ransom/extortion. You get a phone call telling you that your daughter was abducted and the kidnappers are demanding $250,000 for her safe return. If you notify authorities, she will be harmed. So you contact your insurance company, which dispatches a negotiator and a crisis management team. They help you navigate the child abduction, extortion, and safe return of your child. You are reimbursed for the ransom as well as your child's medical expenses and psychiatric care.

How Much Does K&R Coverage Cost? 

Some insurance companies offer policies as low as $500 but the price can increase significantly depending on these factors:

• How many family members/employees are covered under the policy
• The areas your employees travel to around the world
• The risks you or your business faces
• Benefit amount/limits of the policy

You can expect the annual premium to approximately be between $500–$2,000.

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What You Should Know About Kidnap & Ransom Insurance

K&R Insurance Provides Reimbursement, Not Upfront Payments

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Marianne Bonner, a certified CPCU and ARM, worked in the insurance industry for 30 years as an analyst and underwriter among other roles and holds multiple professional designations. Marianne has written many articles for International Risk Management Institute's Risk Report.

As unpleasant as it is to think about, kidnapping-for-ransom is a real concern in many parts of the world.

Each year criminals and terrorists commit an estimated 8,000 kidnappings every year and take $500 million, according to the insurer Chubb.   In 2019, the U.S. State Department began warning travelers about kidnapping and hostage-taking threats in its travel advisories. As of March 2020, at least 35 countries —including Mexico, Kenya, the Philippines, and Russia—were designated as having those risks.  

Luckily, you can prepare for the possibility of a traumatic event, at least somewhat. If you or your employees travel to any of these hotspots (or plan to in the future), you should consider buying kidnap and ransom (K&R) insurance. These specialized policies cover the cost of ransom and other expenses resulting from kidnapping, extortion, and related events. They can often help with crisis management and security too. Here’s a guide to how the policies work, what they cover, and how much they cost.

Key Takeaways on K&R Insurance

• Policies usually cover employees as well as their relatives, guests and travel companions.
• Coverage may extend to a wide variety of related expenses, including interest for a ransom loan, security and crisis management services, surveillance equipment, lost salary, and rehabilitation.
• Premiums may cost $400 to $3,000 per $1 million of coverage.
• Many policies require you to keep the existence of the policy confidential. This is because kidnappers and extortionists may target your business if they know you have K&R insurance.

Sources of Coverage 

K&R insurance is widely available in the marketplace, including from insurers such as Chubb, AIG, Travelers and Ironshore. An insurer may write a stand-alone K&R policy or include it in a crime or package policy.

Insurance Terminology

K&R policies cover costs associated with kidnappings, unlawful detentions, hijackings, and acts of extortion. To understand the differences, here are some typical definitions:  

• Kidnap –Insureds are abducted or seized against their will and held captive as ransom is demanded.  
• Detention –Insureds are held under duress by rogue government officials or insurgent parties .  
• Hijack –Insureds are held against their will while traveling in a car, airplane, boat, etc.  
• Extortion –When criminals threaten harm to employees or property, or threaten to steal trade secrets or other valuable information, if they don’t receive payment.  

Insureds generally include employees, executives, and their relatives and guests.

Many K&R policies cover the ransom amount, a variety of associated expenses, and crisis management and security services. Insurers may set separate limits and retentions (similar to deductibles) for various types of coverage.

Ransom Amount

K&R policies cover the value of money, securities or other property you surrender to satisfy a ransom or extortion demand. They may even cover ransom money (or other property) that is lost or stolen during transport to the kidnappers or extortionists.  

Associated Expenses

There are a myriad of expenses you could incur during or as a result of an incident. Here are some that may be covered, depending on the policy:

• Interest on a loan obtained to pay a ransom
• Fees charged by independent negotiators, public relations consultants, interpreters, and forensic analysts
• Cost of a reward paid to an informant for information that helps secure the release of a kidnap, detention or hijack victim
• Cost of necessary medical or psychiatric treatment for a kidnap, detention or hijack victim. Costs must be incurred within a specified period (such as 36 months) after the victim's release
• Cost of hiring security guards to protect the insured person
• Salary, bonus, and other compensation paid to the victim during the kidnapping, detention or hijacking and for some time (such as 45 days) after their release
• Cost of transporting the victim and his or her family members from the site of the incident to the victim's home country or place of residence
• A benefit if an insured person dies or sustains a specific type of injury, such as loss of a limb or loss of sight
• Damages, settlements, court costs, and attorneys' fees resulting from a negligence suit against your business by an insured person, or his or her heirs      

A K&R policy will reimburse your business for covered expenses it has already paid. It will not pay those expenses on your behalf.

Crisis Management and Security

Because business owners would never be expected to know how to deal with kidnappers and extortionists, many K&R policies cover crisis management services. The insurer contracts a third-party that will provide these services. For instance, the Travelers policy covers services from security and risk-management firm Constellis.

When a kidnapping or other covered event occurs, an insured business notifies the security or risk consulting firm directly. Those experts jump into action, assessing the situation, and working with local authorities to negotiate a safe release of the victim.  

The amount you pay for a K&R policy depends on several factors:  

• Locations of travel
• Your industry and type of operation 
• Frequency and duration of your international trips
• Number of employees
• Coverages you select

You will pay more in premiums if you travel to countries where kidnappings have occurred in the past or that are experiencing political unrest. According to insurance broker A.J. Gallagher, if your business has limited foreign exposure, you might pay as little as $400 per $1 million of coverage. If your company has more exposure (more travel and locations) you’ll pay more: typically between $1,000 to $3,000 per $1 million of coverage.  

You’re best off comparing quotes from several insurers. Note each policy’s coverage amounts, the types of covered expenses, and any relevant exclusions.

And if you get a policy, don’t tell anyone about it. Keeping the insurance secret is a condition of most K&R policies, and failing to meet conditions can give insurers cause to void your policy or claim.  

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Kidnap and Ransom Insurance (K&R Insurance)

The complete guide to kidnap and ransom insurance, what is kidnap and ransom insurance, what does it cover.

• Ransom Payments : Reimbursement for money paid as ransom.
• Negotiation Support : Fees for experienced crisis negotiators.
• Legal Costs : Legal expenses incurred as a result of the kidnapping.
• Medical Expenses : Healthcare costs for physical or psychological treatment.
• Travel Expenses : Costs for evacuation or repatriation.
• Accidental Death and Dismemberment : Lump-sum payments in the worst-case scenarios.
• Consultancy Fees : Fees for specialists who assess and manage security risks.

Who Needs It?

• High-Net-Worth Individuals : People with significant financial assets who may be targeted.
• Journalists and Media Personnel : Those covering stories in risky areas.
• Corporate Executives : Businesspeople who frequently travel for work.
• NGO Workers : Those working in conflict zones or unstable regions.
• Maritime Companies : Organizations at risk of piracy.
• Level of coverage
• Frequency and location of travel
• Policy limits
• Risk Assessment : Consult a risk management expert to assess your individual or organizational risk level.
• Broker Consultation : Work with a specialized insurance broker to identify the best policies available.
• Customization : Tailor the policy to meet your specific needs.
• Purchase : Complete the buying process, which may include an underwriting review.
• Ongoing Evaluation : Continually reassess your risk and update your policy as needed.

Frequently Asked Questions

Is k&r insurance legal, does it encourage kidnapping, can i buy it secretly.

Kidnap and Ransom Insurance provides coverage for individuals and corporations against the financial loss associated with kidnapping, extortion, and ransom demands. This type of insurance typically covers the ransom amount, negotiation services, medical and psychiatric care, and other related expenses.

K&R Insurance is particularly important for individuals and businesses operating in high-risk regions, traveling internationally, or those with high-profile employees or family members. This can include executives, wealthy individuals, journalists, aid workers, and more.

K&R Insurance usually covers ransom payments, negotiation and crisis management services, medical and psychiatric care, travel and accommodation for response consultants, legal fees, and sometimes salary replacement for the kidnap victim.

The cost of K&R Insurance depends on various factors including the risk level of the countries involved, the profile of the insured, the amount of coverage required, and the security measures in place. It can range from a few hundred to several thousand dollars per year.

In the event of a kidnapping, the insured or their representative should contact the insurance company immediately. The insurer will then work with response consultants and negotiation experts to manage the situation and secure the safe release of the kidnap victim.

Yes, K&R Insurance is legal, but it’s important to disclose the policy to the insurance company and comply with all applicable laws and regulations. However, in some jurisdictions, paying ransom may be illegal or subject to restrictions.

Yes, some insurers offer short-term K&R Insurance policies designed for individuals or groups traveling to high-risk areas for a limited period.

A crisis response consultant is a professional negotiator or expert in kidnap situations who works with the insured and the insurance company to manage the incident, negotiate with kidnappers, and secure the safe release of the victim.

Coverage for terrorism-related kidnappings varies by policy. Some K&R Insurance policies include terrorism as a covered peril, while others may exclude it or offer it as an optional coverage.

Implementing comprehensive security measures, providing safety training for employees, and minimizing travel to high-risk areas can help reduce the cost of K&R Insurance.

By continuing to use our website, you acknowledge that you have read and understood our Disclaimer , Privacy Policy , and Terms of Service . Your continued use of the site signifies your agreement to these terms.

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What does kidnap and ransom insurance cover?

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Depending on the type of policy, kidnap and ransom policies cover some of the expense of dealing with kidnappers and their demands.

Kidnapping for ransom money is on the upswing. Kidnap and ransom insurance is now available as part of a comprehensive business insurance package, as a stand-alone policy for individuals and from a few insurance companies as part of their homeowners insurance policy. Corporate policies generally cover most kidnapping-related expenses including hostage negotiation fees, lost wages and the ransom amount. Policies for individuals help pay for the cost of dealing with a kidnapping but do not reimburse for ransom payments.

To locate an insurance company that specializes in kidnap and ransom insurance, go to the Rough Notes Company, Inc .  

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It’s an unfortunate fact that no one is immune to a kidnapping or extortion threat.

A lack of proper coverage at a critical time can result in untold agony and emotional devastation, coupled with the potential for a significant financial loss.

Factors supporting the need for Personal Kidnap Ransom and Extortion Insurance include:

• Anyone, whether traveling internationally or domestically, may be targeted for kidnapping or extortion.
• A kidnapping or extortion threat may result in a life-shattering impact on families and loved ones, not to mention severe financial losses.

Almost nothing can prepare you or a loved one to negotiate with kidnappers or extortionists. However, professional assistance before, during, and after a kidnapping or extortion threat can result in a safe and successful outcome.

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What Is Kidnap and Ransom Insurance and Why Do Travelers Need It?

If you’re planning on traveling abroad, you’ll want to consider getting kidnap and ransom insurance. It’s essential for travelers, so you’ll need to understand it too.

This quick guide will help you better understand kidnap and ransom insurance and why travelers need it. Having coverage can protect you when you leave the country, so it’s not something you should ignore. Keep reading to learn more!

What Is Kidnap and Ransom Insurance?

Let’s start by breaking down what kidnap and ransom insurance is. When traveling abroad, these policies protect you, your organization, and your family from sudden kidnapping costs. It’s estimated that between 200 and 300 Americans are kidnapped when traveling each year, so you will want to protect yourself. 

These threats are genuine and will cost you a lot of money. Even if you don’t have to pay a ransom, these situations can create many costs you’ll need to cover. A good insurance plan can help reduce the stress of dealing with these situations since you know you’re covered.

What Does Kidnap and Ransom Insurance Cover?

Photo by Alexander Mils on Unsplash

While it can vary between policies, most kidnap, and ransom insurance plans cover similar things. Most often, they will cover the following:

• Money paid to kidnappers and extortionists
• Personal financial loss due to kidnapping
• Rehabilitation after kidnapping
• Travel home costs
• Judge, defense, settlements, and some other court costs
• Consultation costs
• Death expenses due to kidnapping

Some kidnap and ransom insurance can also cover the costs of child abductions and stalking. However, you will need to read through the policy to make sure. The plan can also cover time off work after you return home, cosmetic surgeries, and more.

Overall, kidnap and ransom insurance covers expenses that come from these events. You’ll likely be able to recuperate funds that were extorted out of you, as well as travel costs to return home. Many policies will also cover your rehabilitation after a kidnapping.

What Doesn’t Kidnap and Ransom Insurance Cover?

There are some things that kidnap and ransom insurance can’t cover, so you’ll want to know what they are.

You won't be covered if you travel to a country on the U.S. State Department’s advisory list. These countries are considered high-risk or life-threatening, so the policy won’t count when traveling there.

You can review the government’s travel advisory list to ensure you’re not accidentally going anywhere that could be dangerous.

Make sure you know what advisory levels your unique kidnap and ransom policy covers. Of course, you’ll want to avoid going anywhere that has a Level 4, no matter what.

It’s also vital that you don’t discuss having this insurance with anyone, even family members. If you do, it could make you a target, causing the policy to fail when you need it the most.

For example, businesses usually won’t tell their employees that they have a kidnap and ransom insurance policy on them. Telling them about it can raise the risk of that employee being kidnapped and voiding the policy.

In short, you’re covered for a lot under these policies. However, you do need to make sure you don’t tell anyone about it and that you don’t go anywhere with a travel advisory warning from the government.

Why Do Travelers Need Kidnap and Ransom Insurance?

Photo by AbsolutVision on Unsplash

All travelers need to have kidnap and ransom insurance when traveling abroad. Americans can be targeted by criminal groups who are looking to extort money from them. Some terrorist organizations might also be looking to trade prisoners. You might be kidnapped abroad for several reasons, and listing them here is impossible.

These policies can also protect people who are traveling for business. It can protect you if you’re forced to give out information about your company. So, it can cover more than monetary losses.

In short, kidnapping can happen to anyone. It’s a very stressful situation, and you don’t want to worry about whether you’ll be covered when it happens to you.

Do I Need Kidnap and Ransom Insurance?

Generally, having kidnap and ransom insurance is a good idea if you travel abroad. However, many people traveling to high-risk areas consider it a necessity.

It can also be essential if you’re an employee of a business that has you travel oftenl. You may want to consider it for your family too. Many travel journalists also recommend that you get on one of these plans.

Overall, it’s most worthwhile for those who need to travel to high-risk areas frequently. Although, you can always get kidnap and ransom insurance any time you plan on traveling. It’ll give you more peace of mind, allowing you to focus more on your trip.

How Much Is Kidnap and Ransom Insurance?

The price of kidnap and ransom insurance can vary greatly depending on several different factors. Who you are and why you need the policy can change its price.

According to Investopedia , some policies can cost as low as $500 a year. However, you’ll need to research the plans that you’re interested in.

It’s still worth getting when traveling abroad often, no matter the price.

Are Kidnap and Ransom Insurance and Traveler’s Insurance the Same?

Technically, kidnap and ransom insurance is a type of traveler’s insurance. But they’re not the same exact thing. 

Kidnap and ransom insurance specifically cover the costs associated with those events. Traveler’s insurance can cover a variety of different things, including costs associated with lost luggage, delays, and some medical expenses related to traveling.

While you’ll want both for traveling, they’re not the same, even if people sometimes switch the names of the two different policies.

Get Insurance Before Your Trip!

Photo by Element5 Digital on Unsplash

No matter where you’re going, you’ll want to ensure you have the proper insurance before your trip. Even if you’re planning a simple vacation, things can still go wrong. So, it’s better to protect yourself and ensure you’re covered.

Kidnapping and ransom events do happen abroad. If you have insurance, you can deal with its expenses. Otherwise, you could be out a lot of money. In short, consider adding kidnap and ransom insurance to your plan before your trip.

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Your Quick-Reference Handbook for Kidnapping and Ransom Insurance

What is Kidnapping and Ransom Coverage?

Kidnappings—including ‘virtual’—have become increasingly popular over the last several years, especially in some areas of the world. 

  What if you regularly travel to some of these areas, whether for business, pleasure, or both? Are you covered if you’re kidnapped and held for ransom against your will? How can you know, and what can you do if you’re not? 

In this handbook, I’ll quickly explain the basics of kidnapping and ransom insurance and where you can turn if you’d like to learn more. 

 What Does Kidnapping for Ransom Mean?

According to Springer’s Encyclopedia of Law and Economics : 

“ Ransom kidnapping refers to a situation in which the overriding purpose for the act is a payment (usually a sum of money) for the release of the hostage and the enrichment of the perpetrators.”  

Given these situations’ precariousness, how does an insurance company pay the ransom for a kidnapped person’s release? 

How Does Kidnapping and Ransom (K&R) Insurance Work?  

Kidnapping and ransom insurance is designed to cover travelers who frequent areas where kidnapping is a legitimate concern, along with their employers, against financial losses resulting from kidnapping, extortion, and ransom demands. 

Depending on your needs, you can purchase a standalone policy, or the company you work for can buy coverage on your behalf.  

You can also extend coverage to another individual, a spouse, relative, or just about anyone else who resides in your dwelling (e.g., guests, nannies, housekeepers, etc.).

K&R Insurance Coverages  

After an insurer is contacted and they’re aware of the kidnapping, they’ll immediately enlist the help of professionals to help with negotiations, ransom delivery, your evacuation, and eventual return home. 

Specifically, a basic K&R policy covers things like: 

• Ransom payment 
• Loss of income, along with time off work following the release 
• Travel expenses 
• Rewards paid to informants 
• Interest on bank loans 
• Medical care 

Depending on your needs, you can also purchase expanded coverage for: 

• Business interruption 
• Crisis management consultants 
• Public relations services 
• Damages caused by extortion, terrorism, and wrongful detention 
• Lawsuits against a company by a kidnapped employee 
• Funeral expenses (in a worst-case scenario) 

An Important Note About Payouts Under a K&R Policy  

Most standard insurance types, such as auto and homeowner’s, pay repair costs directly to the professionals who complete them, less a deductible paid by the insured.  

Conversely, K&R insurance requires that the policyholder, whether an individual, family, or corporation, pay the ransom and any associated costs first. The carrier then reimburses the insured, including any interest on loans, once the crisis has ended. 

Like any other type of insurance, kidnapping and ransom policies come with limits, after which the insured is wholly responsible for related costs.

What are Some Common K&R Insurance Exclusions?  

Kidnapping and ransom policies are highly tailored to the risk insured, so broad differences in coverages, exclusions, and costs (more soon) exist. 

With this said, K&R insurance can exclude coverage in countries listed as “Do Not Travel” (those shaded red) on the U.S. State Department’s travel advisory map . 

Furthermore, carriers frequently include provisions outlining your (and your employer’s) silence about K&R coverage, lest you become a target for criminals looking for a big payout. 

Who Might Benefit from Kidnapping, Ransom, and Extortion Insurance?  

Even if you only travel to areas not actively under a U.S. State Department travel advisory, but do so infrequently, then K&R insurance likely isn’t for you. 

  Instead, if you travel to moderate-risk foreign countries regularly, then K&R might be something to consider. This type of insurance can also be ideal for: 

• Wealthy business people and other high-net-worth individuals 
• Family members of high-net-worth individuals 
• Celebrities and those with high public profiles, such as politicians, professional athletes, and musicians 
• Journalists 
• Aid workers 

If you fall into any of these categories, how much might you expect to pay for kidnapping and ransom insurance? 

How Much Does a Kidnapping and Ransom Policy Cost?  

Kidnapping and ransom policies typically start at between $50K and $100K worth of coverage, which might cost less than $500 annually. Like any other form of insurance, this price increases as you expand coverage. 

Factors that will impact how much you pay for K&R coverage include: 

• Type of coverage 
• Coverage limits 
• The countries to which you frequently travel 
• The number of people covered under the policy 

With these details in mind, carriers commonly offer up to $50 million worth of coverage under K&R policies, which can cost $2,000 or more per year. 

How Can You Learn More About Kidnapping and Ransom Insurance?  

If you’re ever forced to file a claim under kidnapping and ransom insurance, which often run into the hundreds-of-thousands or millions, the coverage provided under your policy could more than make up for what you hand over in premium payments. 

As I’ve outlined above, though, there are many moving parts when it comes to K&R coverage, which is why you should turn to the professionals at IHS Insurance Group when you’re ready to learn more. We can help you choose adequate limits and necessary endorsements at a price that won’t break the bank. 

Do you need a FREE Quote or have questions regarding commercial insurance ? Please fill out our quick GET A FREE QUOTE form, and an agent will get back to you at your convenience!

We look forward to speaking with you today!

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What Is Kidnap and Ransom Insurance?

Kidnap and Ransom Insurance protects your business against financial losses resulting from kidnapping, ransom, or extortion demands.

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In today’s world of global business, the threats against your company are varied, and for businesses sending employees to international destinations, the risk of kidnapping is a growing reality. Particularly in high-risk regions with extreme poverty or corrupt law enforcement, kidnapping and holding U.S. business professionals for ransom has become a common occurrence and a viable, yet illicit, means of making a living.

Many studies estimate global ransom revenue generated per year to be in the billions of dollars and growing. In order to protect against the financial impact of this real and ever-expanding threat, businesses that are particularly exposed to this risk can purchase Kidnap and Ransom Insurance.

What is Kidnap and Ransom Insurance?

Kidnap and Ransom Insurance, also known as K&R Insurance or Kidnap, Ransom, and Extortion Insurance, is typically a stand-alone policy that protects your business from financial losses as a result of kidnapping, ransom, or extortion demands.

Your software company is selling to a business in Mexico, which requires an in-person meeting in Mexico City. The sales manager and sales representative on the deal travel to Mexico City to work out terms of the deal. During their trip, the sales manager and representative take a taxi that is suddenly hijacked. The hijackers take the passengers hostage and demand a ransom of $2.6 million from your company. Kidnap and Ransom Insurance would protect your company from the financial losses as a result of having to pay the ransom.

Kidnap and Ransom Insurance is particularly important for companies that frequently send employees abroad to high-risk areas. K&R Coverage will protect against events related to:

• Kidnapping and ransom : Abducting an individual against their will, holding them captive, and demanding payment in exchange for their release.
• Wrongful detention : Holding an individual in custody unlawfully for reasons other than kidnapping. This is often done by a government or quasi-government entity for political reasons.
• Extortion : Demanding payment through force or threats to injure or kill an individual, damage property, divulge trade secrets, or spread a computer virus.
• Hijacking : Unlawfully seizing an aircraft, vehicle, or ship and holding an individual against his or her will for an extended period of time.

Do I need Kidnap and Ransom Insurance?

If your company does business internationally and has employees traveling or stationed abroad, especially in high-risk regions of the world, Kidnap and Ransom Insurance may be a wise investment. Kidnappings continue to occur at high rates in areas of extreme poverty or political unrest, with foreign travelers, particularly business travelers, being the prime targets.

Countries with a higher incidence of kidnapping include:

• Afghanistan
• Philippines
• South Africa

K&R Insurance is applicable to businesses both large and small. To a kidnapper, business travelers all represent the same opportunity for cashing in on a ransom, and there is little to distinguish a business traveler from a large or small company.

Benefits of Kidnap and Ransom Insurance

Aside from providing your business with financial protection, K&R Insurance also generally includes other helpful benefits for when you are facing a kidnapping or extortion event. These include:

• Access to a network of professionals : If an employee of yours is kidnapped, you’ll need assistance from a variety of seasoned professionals who have dealt with these types of crises. From negotiators to psychiatric care professionals, your insurer will deploy a team of experts and consultants who can remediate the situation as quickly and safely as possible.
• Risk mitigation services : Some insurers offer training for your employees, in order to educate them on how to limit their risk to potential kidnappings and how to handle a hostage situation if the need arises.

Two reporters from your media company travel to Saudi Arabia on assignment. During their time there, the reporters are detained by the local government on suspicion of inciting anti-government sentiment. The reporters are imprisoned and intensely interrogated.

You have a Kidnap and Ransom Insurance policy, and the insurer contacts you with assistance from a team of crisis consultants who have experience dealing with wrongful detention. The consultants access their network of experts and help in providing intelligence and mediating the release of the reporters. Moreover, your insurer also provides a post-event risk assessment to ensure the health of the reporters.

What does Kidnap and Ransom Insurance cover?

Kidnap and Ransom Insurance is designed to protect businesses from financial losses caused by kidnapping, extortion, and ransom demands. Coverage generally includes:

• Ransom and extortion payments
• In-transit money delivery coverage
• Consultant costs
• Negotiation costs
• Public relations costs
• Interest fees coverage
• Judgement settlements
• Defense costs
• Death and dismemberment benefits
• Medical costs for injuries
• Psychiatric treatment after the individual is freed

K&R Insurance can also include coverage for spouses, relatives, guests, nannies, and housekeepers.

Note that for ransom and extortion coverage, the insurer would not pay the kidnapper directly. Your company would need to pay the kidnapper first and then receive reimbursement from the insurer. Generally, this means that you cannot purchase a policy that covers more than your company has in assets.

What are the important conditions and exclusions of Kidnap and Ransom Insurance?

K&R policies differ from insurer to insurer, and some possible exclusions may include:

• Sanctioned countries : Policies may exclude countries that the U.S. has imposed sanctions on, like North Korea or Iran.
• War and terrorism : Some policies exclude coverage of travel in countries that are experiencing civil unrest or war.
• Criminal activity : Policies generally exclude kidnapping or extortion that results from dishonest, fraudulent, or criminal activity by the insured company or employee.

Insurers strongly advise that employers do not reveal to employees that they have Kidnap and Ransom coverage, and insurance carriers may declare the policy null and void if the employer reveals this information. This confidentiality provision is designed to prevent employees from revealing their coverage to others, thus making the employees lucrative targets, as well as to prevent fraudulent kidnappings.

How much does Kidnap and Ransom Insurance cost?

The cost of Kidnap and Ransom Insurance depends on a number of factors, including:

• Country of residence
• Travel history of employees
• Plans for employee travel
• Company revenue
• Number of employees
• Benefit amount

Ultimately, the higher the risk of travel, the more expensive the premium will be. While some lower risk plans may cost a few hundred dollars annually for a single employee, plans for companies that travel often to high-risk areas may cost upwards of tens of thousands of dollars.

Kidnap and Ransom Insurance is not for every business, but for those businesses that have employees who travel abroad often, particularly in high-risk areas of the world where kidnappings or wrongful detentions are more prevalent, it may be absolutely critical. With ransoms that can quickly run up into the millions of dollars, K&R Insurance could play a crucial role in helping to stave off financial ruin, and at the same time, assisting with the successful remediation of a hostage situation.

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Does Travel Insurance Cover Kidnapping Ransom?

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An American tourist and her guide have been freed after they were kidnapped while on a safari  at Queen Elizabeth National Park in Uganda. The New York Times and Reuters report an unnamed source saying that Wild Frontier Uganda Safaris, which was in charge of the woman's trip, paid a ransom to kidnappers. Here & Now 's Robin Young speaks with attorney  Joshua Gold , who specializes in insurance disputes.

This segment aired on April 8, 2019.

More from Here & Now

Overview of Travel Insurance Coverage

What does travel insurance cover, what does credit card travel insurance cover, what travel insurance coverage do you need to pay more for, choosing the right travel insurance, what does travel insurance cover frequently asked questions, understanding what travel insurance covers.

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate insurance products to write unbiased product reviews.

The information for the following product(s) has been collected independently by Business Insider: Chase Freedom Flex®. The details for these products have not been reviewed or provided by the issuer.

• Travel insurance is intended to cover risks and financial losses associated with traveling.
• Coverage can include trip cancellation, baggage protection, medical care, and emergency evacuation.
• When filing a claim, be specific and comprehensive in your documentation to ease the process.

Whether it's a trip across the world or a trip across the state, having travel insurance provides major relief if things go awry. Flight delays, lost baggage, illness, injuries, and other unforeseen events can disrupt even the best-laid plans. With a major disruption comes the potential for unanticipated expenses.

Travel insurance and the coverage it offers can help keep you protected and save you money in the long run.

Travel insurance policies protect travelers from financial losses should something go wrong during their trip. You can customize which coverages you want to include, and there are several to choose from.

"Common types of coverage include trip cancellation, trip interruption, baggage protection, coverage for medical care if you get sick or hurt during your trip, and emergency medical evacuation," says Angela Borden, a travel insurance expert and product strategist for travel insurance company Seven Corners.

Travel insurance plans offer nonrefundable payments and other trip-related expenses. While monetary compensation is a primary benefit, there is another valuable perk of travel insurance. It can provide peace of mind.

Your specific travel insurance plan (and its terms and conditions) will determine the minutia and specifics of what is covered. As with most other forms of insurance, a general rule of thumb is the more you spend, the better your coverage.

"Travel insurance can be confusing, so it's best to research a reputable company that specializes in travel insurance and has a long history of successfully helping travelers all over the world," says Borden.

Trip cancellations and interruptions

A travel insurance policy can reimburse you for a prepaid, nonrefundable trip if it is canceled for a covered event, such as a natural disaster or a global pandemic.

Trip interruption insurance covers you if you're already on your trip and you get sick, there's a natural disaster, or something else happens. Make sure to check with your travel insurance providers to discuss any inclusions, coverage, and more.

Travel delays and missed connections

Travel delay insurance coverage provides reimbursement for any expenses you incur when you experience a delay in transit over a minimum time. Reimbursements can include hotels, airfare, food, and other related expenses.

Medical emergencies and evacuations

Typically, US healthcare plans are not accepted in other countries. So travel insurance with medical coverage can be particularly beneficial when you are abroad. Medical coverage can also help with locating doctors and healthcare facilities.

Medical transportation coverage will also pay for emergency evacuation expenses such as airlifts and medically-equipped flights back to the US. Out of pocket, these expenses can easily amount to tens of thousands of dollars. Certain plans may even transport you to a hospital of choice for care.

Travel insurance generally does not include coverage for pre-existing conditions. That said, you can obtain a pre-existing condition waiver, which we will talk about later.  

Baggage and personal belongings

Most airlines will reimburse travelers for lost or destroyed baggage, but be prepared for limitations. Travel insurance plans will typically cover stolen items, such as those stolen out of a hotel room. This may not include expensive jewelry, antiques, or heirloom items. Typically, airlines have a few days to recover your bag.

In the meantime, you can make a claim to pay for items like certain toiletries and other items you need to pick up. If your bag is truly lost or you don't get it for an extended period, you can file a true lost baggage claim.

A major perk on several travel credit cards is embedded credit card travel insurance . Typically, you will need to use the specific card for the transaction (at least with partial payment) for travel coverage to kick in.

Each card has specific rules on what exactly is covered. But one of the industry leaders is the $550-per-year Chase Sapphire Reserve credit card. Here's a snapshot of what is covered with this specific card:

• Baggage delay: up to $100 reimbursed per day for up to five days if a passenger carrier delays your baggage by more than six hours.
• Lost and damaged baggage: up to $3,000 per passenger per trip, but only up to $500 per passenger for jewelry and watches and up to $500 per passenger for cameras and other electronic equipment.
• Trip delay reimbursement: up to $500 per ticket if you're delayed more than six hours or require an overnight stay.
• Trip cancellation and interruption protection: up to $10,000 per person and $20,000 per trip for prepaid, nonrefundable travel expenses.
• Medical evacuation benefit: up to $100,000 for necessary emergency evacuation and transportation when on a trip of five to 60 days and traveling more than 100 miles from home.
• Travel accident insurance: accidental death or dismemberment coverage of up to $100,000 (up to $1,000,000 for common carrier travel).
• Emergency medical and dental benefits: up to $2,500 for medical expenses (subject to a $50 deductible) when on a trip arranged by a travel agency and traveling more than 100 miles from home.
• Rental car coverage: primary coverage for damages caused by theft or collision up to $75,000 on rentals of 31 days or fewer

More protections are included with cards with an annual fee, but there are exceptions. The no-annual-fee Chase Freedom Flex, for instance, includes up to $1,500 per person (and up to $6,000 per trip) in trip cancellation and trip interruption coverage.

However, there are some differences between credit card travel coverage and obtaining coverage from a third party.

"Credit card coverage does not typically provide travel medical benefits," Borden says. "For protection if you get sick or hurt while traveling, you'll want a travel insurance plan with medical coverage."

Whether you get your travel insurance in a standalone policy or through a credit card, it's important to review your plan details carefully. In either case, there may be exclusions and other requirements such as deadlines when filing a claim, Borden notes.

Knowing what travel insurance doesn't cover is as important as knowing what it does cover.

"Travelers should understand that travel insurance benefits come into play only if a covered reason occurs," Borden says. Most standard travel insurance plans won't reimburse you for the following:

Cancel for any reason (CFAR)

Cancel-for-any-reason travel insurance covers a trip cancellation for any reason, not just a covered event. your standard benefits won't kick in unless it's a covered event. For instance, you'll be reimbursed simply for changing your mind about taking a trip.

That said, CFAR travel insurance is not without its downsides. For one, it's more expensive than traditional insurance, and most CFAR policies will only reimburse you for a percentage of your travel expenses. Additionally, CFAR policies aren't available for annual travel insurance . 

You can find our guide to the best CFAR travel insurance here.

Foreseen weather events

Sudden storms or unforeseen weather events are typically covered by standard travel insurance plans. There are exceptions to be aware of. For example, an anticipated and named hurricane will not be covered.

Medical tourism

If you're going to travel internationally for a medical procedure or doctor's visit, your travel insurance plan will not cover the procedure itself. Most medical travel plans also won't cover you if something goes wrong with your procedure.

Pre-existing conditions and pregnancy

Those with specific pre-existing conditions, such as someone with diabetes and needing more insulin, will not be covered by most plans. In addition, pregnancy-related expenses will likely not be covered under most plans.

That said, you can obtain a pre-existing condition waiver for stable conditions. In order to obtain a wavier, you will need to purchase travel insurance within a certain time frame from when you booked your trip, usually two to three weeks, depending on your policy.

Extreme sports and activities

Accidents occurring while participating in extreme sports like skydiving and paragliding will typically not be covered under most plans. However, many plans offer the ability to upgrade to a higher-priced version with extended coverage.

Navigating claims and assistance

When a trip goes awry, the first thing you should do is document everything and be as specific as possible with documentation. This will make the claims process easier, as you can substantiate and quantify your financial losses due to the delay.

For example, your flight home has been delayed long enough to be covered under your policy, you'll want to keep any receipts from purchases made while waiting. For instances where your luggage is lost, you will need to file a report with local authorities and document all the items you packed.

Cancellation protection also requires meticulous attention to detail. If you're too sick to fly, you may need to see a doctor to prove your eligibility. If an airline cancels a flight, you'll also need to document any refunds you received as travel insurance isn't going to reimburse you for money you've already gotten back. 

Part of the benefit of CFAR insurance is the reduced paperwork necessary to file a claim. You'll still need to document your nonrefundable losses, but you won't have to substantiate why you're canceling a trip.

Each plan should be personalized to meet the insured party's needs. Some travelers prefer to stick to the bare minimum (flight cancellation benefits through the airline). Others want a comprehensive plan with every coverage possible. Before you buy anything, set your destination. Are there any travel restrictions or changes pending? Does your destination country require emergency or other medical coverage?

If the destination airport is known for lost or delayed luggage, travelers should keep important items in carry-ons. Lost or delayed luggage coverage protects insured parties in the event of a significant delay or total loss.

Second, check current credit card travel benefits to avoid redundancies. Savvy travelers don't need to pay for the same coverage twice.

Finally, consider your individual needs. Do you have a chronic medical condition, or do you feel safe with emergency-only medical coverage? Keep in mind, this does not include coverage for cosmetic surgery or other medical tourism. Do you have a budget limit for travel insurance? Asking and answering these important questions will help every traveler find the right product.

Most travel insurance plans are simple, and Business Insider's guide to the best travel insurance companies outlines our top picks. Remember, read your policy and its specifics closely to ensure it includes the items you need coverage for.

No one likes to dwell on how a trip might not go as planned before even leaving. However, at its core, travel insurance provides peace of mind as you go about your trip. While the upfront cost may seem significant, when you compare it to the potential expenses of a canceled flight, emergency evacuation, or a hefty medical bill, it's a small price to pay in the grand scheme of things.

Coverage for pandemics vary from policy to policy. Some travel insurance companies have specific provisions for pandemic-related cancellations, while others may exclude them entirely.

Sports injuries are often covered under travel insurance, but high-risk or adventure sports might require additional coverage or a special policy.

Travel advisories have different effects on your travel insurance depending on your policy. Traveling to a country already under travel advisory may invalidate your coverage, but if you're already traveling when a travel advisory is announced, you may be covered.

Travel insurance usually covers the cost of emergency medical evacuations to the nearest suitable medical facility, and sometimes back to your home country, if necessary.

Many travel insurance policies provide coverage for the cost of replacing lost or stolen passports during a trip.

• Main content

Domestic Travel Insurance: What Does It Cover?

D omestic vacations are generally less expensive than international ones, and your health insurance policy may already cover medical emergencies you experience, even across state lines. So, do you need one of the best travel insurance policies while vacationing in the U.S.? And what would a policy cover during a domestic trip?

In this article, we explain what domestic travel insurance covers to help you determine whether purchasing one of these policies is right for you. Keep reading to find out more.

Table of contents

What does domestic travel insurance cover, domestic travel insurance exclusions, do you need travel insurance for domestic trips, how much is domestic travel insurance, when to buy domestic travel insurance, domestic travel insurance faqs, summary of money’s guide to domestic travel insurance.

While travel insurance is mainly associated with international travel, you can also purchase this type of policy for domestic trips. Coverage options vary by insurance company and plan, yet most travel insurance policies afford the following types of coverage.

• Emergency medical coverage: Reimburses you — up to the policy limit — for medical treatment related to accidents or illnesses you experience during a trip. Coverage generally excludes pre-existing conditions and may be primary or secondary to any existing medical insurance you have that’s in effect at your destination. (Check with your insurer to confirm that coverage.)
• Emergency medical evacuation and repatriation coverage: Covers emergency transportation to the nearest medical facility or back to a hospital close to your home, if medically necessary and recommended by your doctor. It also covers expenses related to transporting your remains to your return destination if you die during the trip.
• Trip cancellation coverage: Refunds you a percentage of pre-paid, non-refundable travel costs — up to a limit — if you cancel or interrupt your trip for eligible reasons. Valid reasons for canceling include natural disasters and the illness or injury of a traveler or their family member.
• Trip interruption coverage: If you must interrupt a trip for a covered reason, travel insurance can reimburse you for the unused portion of the trip and any expenses you incur returning home. Reimbursement is usually capped at 150% of the trip’s cost.
• Travel delay coverage: Trip delay coverage reimburses you up to your policy limits if you experience flight delays and incur additional expenses like meals or lodging. It may also cover airport delays and flight change fees.
• Baggage loss and baggage delay coverage: Refunds you the cost of replacement items (up to a per-item limit) if your luggage is lost or delayed during your trip. You usually have to wait a specified number of hours before filing a claim and provide purchase receipts or a list of items in your luggage. Coverage may also be subject to a deductible.
• 24-hour emergency and travel assistance: Most travel insurers offer worldwide travel assistance services. These include help with replacing lost documents, luggage, prescriptions or medical devices and arranging hotel accommodations and medical transport services.

For more information about these and other coverage options, read our article on what travel insurance covers .

Travel insurance add-ons and benefits for domestic trips

Again, while options vary by company, insurers generally offer add-ons and other benefits that can enhance a base travel insurance policy. These include:

• Rental car collision coverage: Also called collision damage waiver (CDW), this add-on waives policyholders’ financial responsibility (up to a limit) if their rental vehicle is damaged in an accident or collision. When available, this option generally costs extra.
• Cancel for any reason (CFAR) coverage: While standard cancellation coverage reimburses policyholders for cancellations related to specific covered events, cancel for any reason coverage reimburses policyholders for a portion of their trip cost (50% to 75%) if they cancel for any reason whatsoever. This option can increase the policy’s price by as much as 50%.
• Waiver of pre-existing conditions: Travel insurance policies commonly exclude coverage for pre-existing medical conditions. Unless you qualify for a pre-existing conditions waiver at the time of purchase, you won’t be reimbursed for medical expenses related to a condition diagnosed before — even shortly before — your policy’s effective date. Qualifying for this waiver often requires meeting specific criteria, such as being medically fit to travel and insuring the entire trip cost.
• Accidental death and dismemberment (AD&D): This coverage pays out a sum of money if you die, lose a limb or experience vision loss during your trip due to an accident. Depending on the policy, coverage may apply at specific times (while boarding or traveling by plane) or throughout the trip. Some, but not all, policies automatically include this benefit.

Before researching travel insurance for your next trip, keep in mind that some insurers define domestic travel as any trip that takes you over 100 miles from home but is still within the U.S. That means shorter trips may not be eligible for coverage.

Additionally, you may not be covered in all states. Read your policy information thoroughly to understand the coverage exclusions.

According to the NAIC, other common travel insurance exclusions include:

• Pandemics (although some companies cover certain losses related to COVID-19)
• Pre-existing medical conditions (unless you qualify for a pre-existing condition waiver)
• Civil or political unrest at the destination
• Pregnancy and childbirth
• Coverage for high-risk activities (think snowboarding or parasailing)

You don’t necessarily need to purchase a travel insurance plan for a trip within the U.S., especially if your health insurance plan already offers out-of-state or out-of-network coverage.

Additionally, your auto insurance policy generally extends the same coverage and limits to rental vehicles as to the cars you own, so you may not need additional protection. (And rental car companies may not accept a collision damage waiver from a travel insurer as a valid form of coverage.)

Furthermore, some of the best travel credit cards offer benefits that can duplicate or supplement travel insurance coverage. For example, many top-tier credit cards include trip cancellation and interruption coverage and collision damage waivers for rental cars.

Not all credit cards provide these benefits, however, so review your credit card’s benefits guide or contact the issuer for details. You should also verify whether your credit card’s coverage is primary or secondary to other forms of insurance you’re already carrying.

What you’ll pay for a domestic travel insurance policy will depend on factors such as your age (and the age of your travel companions), the insurance company, the plan and coverage options you choose and the total cost of your trip.

Here are some price examples from various insurers for a $4,500 (total) domestic trip for two travelers.

Read our guide to the best travel insurance companies for more information on these and other insurers. And if you’re planning a cruise, check out our top picks for cruise travel insurance .

Generally, it’s best to buy travel insurance soon after making your initial trip payment. That will ensure you qualify for optional benefits such as CFAR coverage and pre-existing condition waivers.

If you don’t know whether to purchase travel insurance coverage in the first place, consider your risks. Travel insurance may make sense if you’re planning an expensive trip and your airfare or hotel bookings are non-refundable. A policy could reimburse you for some of those expenses if you have to cancel or postpone your travel plans at the “last minute.”

That can be especially true when traveling to a destination where weather-related risks are common. For example, if you’re visiting California during peak wildfire season or Florida during hurricane season, travel insurance could offer peace of mind and financial protection against travel disruptions caused by a natural disaster.

Does travel insurance cover domestic flights?

How much is travel insurance, is travel insurance worth it.

If you’re a U.S. resident traveling to other states, domestic travel insurance may be an option worth considering. A comprehensive travel insurance policy for domestic vacations can cost between 3% and 14% of the total cost of your trip, depending on the coverage options you select.

If you’ve booked expensive, non-refundable accommodations, are traveling to a state where natural disasters are common or don’t have health insurance coverage that extends out of state, travel insurance could offer you a measure of financial protection against common travel mishaps — all for a fraction of the cost of your trip.

© Copyright 2024 Money Group, LLC . All Rights Reserved.

This article originally appeared on Money.com and may contain affiliate links for which Money receives compensation. Opinions expressed in this article are the author's alone, not those of a third-party entity, and have not been reviewed, approved, or otherwise endorsed. Offers may be subject to change without notice. For more information, read Money’s full disclaimer .

Spaceships. Submarines. Kidnappings. How the Very Rich Vacation Now.

Those with $50 million in the bank aren’t average, so it follows that neither are their vacations. In other words, Fitzgerald had it right: The very rich are different from you and me.

By Sarah Kopit | June 23, 2024

According to Jimmy Carroll, containing the kidnapping “victims” is generally the hardest part of the trip to execute.

Here’s the set-up: A wealthy entrepreneur is about to turn 40. To celebrate the milestone birthday, he wants to take his closest friends on a vacation they’ll never forget. It’s a tall order, given these are the Masters of the Universe who have done … a bit of everything. 

Enter Carroll, co-founder of the ultra-exclusive, supremely expensive travel planning company, Pelorus.

For this trip, the team dreamed up a faux kidnapping in a remote part of South East Asia. The birthday boy (and a handful of hired actors) were the only ones in on the ruse. 

It helps that both Carroll and his co-founder, Geordie Mackay-Lewis, are ex-British military, and specialize in reconnaissance and extraction. 

The adventure started with the group exploring the world’s largest cave system, the Son Doong, in Vietnam. It was during the first part of the trek that Carroll and his team were able to psychologically profile the unwitting guests.

Each of the travelers was asked a battery of questions about how they react to stressful situations and their feelings about being underground. That provided excellent cover to hide the actual intention of the questioning. “Ten percent [of the profile] was about the cave system,” Carroll remembers. “Ninety percent was about the kidnap,” he says with a grin.

Leading up to the trip, they created elaborate backstories for the actors. Everyone had to sign waivers. Extra insurance was purchased.

But it was still containment that was the biggest hurdle. “You don’t want someone running into the jungle for their life.” 

Carroll says once they got into it, everything went according to plan – except for an especially astute friend who started to get suspicious. “One guy we had to separate. He started to smell a rat,” he said. “But that actually played into our hands.” 

That trip was a success. The client was thrilled. It’s what Carroll describes as the most complex and challenging travel experience he’s planned since starting Pelorus seven years ago.

And if you’re thinking you’ve seen this movie – you have. “The Game” starring a youngish Michael Douglas and Sean Penn, tells the story of a successful banker who participates in an over-the-top, personalized, real-life game as a birthday gift from his brother. Chaos and danger ensue. 

Pelorus actually does its own version of “The Game,” as well. “People want their senses pushed,” says Carroll, opining on the trends currently in demand with the monied set. 

“Our clients are well-traveled and time-poor. They’re looking for access to something out-of-the-ordinary, something they and their friends haven’t done yet.”

The New Social Currency

For the ultra high net worth traveler – those who typically have assets exceeding anywhere from $30 to $50 million – it’s these intense, experiential travel adventures that have become particularly en vogue. 

In a post-pandemic world, the super rich are seeking trips that offer exceptionally unique experiences heavy on exclusivity, authenticity with extreme measures taken to ensure their safety. They’re looking for once-in-a-lifetime adventures that are the envy of friends (and enemies). Mere opulence will no longer do. 

“A lot of our clients are high profile or senior business executives, and are therefore very security conscious,” Carroll says. Pelorus leans heavily into its founders’ military training. Both Carroll and Mackay-Lewis did tours in Iraq and Afghanistan. For certain high-profile clients, one or both of them are personally on-site for the vacations.

 Geordie Mackay-Lewis and Jimmy Carroll . Source: Pelorus

The well-heeled are now clamoring to race Aston Martins in England or hang with the emperor penguins in Antarctica. They want to fly to space or dive into the deepest depths of the ocean. The echoes of Jules Verne are everywhere. 

In the coming year, Pelorus will take over the actual Orient Express for a birthday celebration. This trip has been two years in the making. After some prodding, Carroll would only give the cost as, “multiple, multiple millions.”

And the demand for adventure by the young and privileged is only increasing. 81% of travelers making over half a million dollars a year say they are very likely to seek out thrilling and adventurous activities in their luxury travel experiences, according to Skift Research. A whopping 78% of that group say they plan to boost their travel budgets for the coming year.

Which, if you’re doing the math, translates into Big Money. The global luxury travel market was valued at $1.67 trillion in 2022 and it’s expected to more than double over the next decade, reaching $3.7 trillion by 2032, according to Spherical Insights .

“It doesn’t matter if you’re doing a kidnapping or a honeymoon or a wedding anniversary,” Carroll stresses. “It’s all about attention to detail, personalization and creating an unforgettable experience.

To Boldly Go Where No One Has Gone Before

So what to do after you’ve seemingly done everything, gone everywhere? The answer increasingly means either looking up (way up) or down (way down).

Humanity’s current space-minded billionaire set – the trio Bezos, Branson and Musk – are leading the fledgling tourism space race, already sending civilians into orbit at a cost of multiple millions a pop.

This is hardly affordable, even for the extremely rich. 

But space tourism is widening and going mainstream at a remarkable rate. The U.S. government now has a Space Force and the moon has a time zone. Hilton is designing the interiors for Starlab, the next iteration of the International Space Station. 

The global space economy is expected to reach $1.8 trillion by 2035, up from $630 billion in 2023, says the World Economic Forum . The space tourism market will take in about $4 billion of that by 2030, according to UBS.  

Artist rendering of Starlab Station . Source: Hilton

For now, there are far fewer seats available than interested parties. But, “every mission gets us one step closer to increasing access to space,” Blue Origin told Skift. And there’s a feeling among all in the industry that prices will come down quickly.

To fill the void, there’s a host of other new flying machines and space balloons to scratch that airborne itch at a more reasonable(ish) price point.

Coming later this year, several companies intend to take passengers up about 100,000 feet in pressurized capsules lifted by hydrogen space balloons. Flights typically last about six hours. At their highest point, passengers see both the curvature of the Earth and the darkness of space.

No training is needed. Cocktails and hors d’oeuvres will be served.

Artist Rendering of  a spaceballoon. Source: SpaceVIP

Over at Pelorus, they’ve teamed with OceanSky Cruises to offer floating expeditions above the Arctic in an airship. These airships – which I confirmed is just a fancy way to say blimp – promise a cleaner way to view both the North and South poles.

Pelorus’s Carroll expects over the next 5-10 years that the travel community will see a huge increase in cleantech aerospace creations like electric vertical take-off and landing aircraft – or EVTOLs – that use electric power to hover, take off, and land vertically.

Artist renderings of airships. Source: Pelorus

But for those looking for still more adventure, there’s often a significant nexus between those Earthlings willing to be blasted off in a rocket and those who want to dive into the deepest depths of the world’s oceans. 

This hasn’t gone unnoticed by exclusive tour providers who are often experts in arranging both types of trips for the right customer. 

Take the luxury outfit SpaceVIP. While it has the word ‘space’ in its name, it offers three types of exotic experiences  – those with Space operators, Earth operators and Ocean operators. 

20,000 Leagues Under the Sea 

The deep sea is also increasingly a place for adventurous tourists.

The Hadal Zone, named for the Greek god of the underworld, Hades, is understood by scientists as depths from 6,000 to 11,000 meters below sea level. Known for its extreme pressure, total blackness, and almost freezing temperatures, this is where you’ll find the Mariana Trench and its cavernous crevasse, Challenger Deep. It’s the lowest point in the ocean and a perennial Hollywood fascination. If you saw “The Meg,” that’s where she lived.

This May, real estate billionaire Larry Connor said that he wants to take a sub to see the shipwreck of the Titanic . That’s the same spot where five people were killed in 2023 when a submersible built by the company OceanGate imploded, leading to increased scrutiny of the industry.

The submersible Connor intends to use will be built by Triton Submarines, the gold standard maker of recreational submersibles. They cost anywhere from $2.7 million to $35 million a piece. 

Triton submersible. Source: Triton

They supply high end hotels, cruise ships and individual explorers alike.  Ray Dalio, the founder of Bridgewater Associates and James Cameron , director of the movie Titanic, have both partnered with Triton. 

“We had a client come to us and say, I’ve skied to the North and the South Pole. I’ve climbed the highest peak on the seven continents, but I’m amazed to find nobody’s ever visited the deepest point of five oceans. Can you build us a sub to do that?” says Craig Barnett, Triton’s director of sales. “So we actually did that.” 

“It used to be to take a photo of your Gucci handbag or your new Ferrari or whatever and put it online,” Barnett says. “Now that seems gauche. So everybody’s looking for unique, meaningful experiences that you share with their friends and families.”

But, but, but, but …

Let’s confront the elephant in the room, shall we?

With rampant income inequality across the globe and the effects of climate change ravaging our environment, should anyone even be able to spend $1.5 million to fly on a private jet for a worldwide whisky tour? Or eat a Michelin- starred meal suspended from a space balloon 20 miles above earth? Or play with the penguins in their natural habitat, which, until recently, was unsullied by human hands?

The providers of these luxury experiences know you’re asking yourself these questions. 

“A half a million dollar meal at the edge of space? Do we need more rich assholes doing that?” quips SpaceVIP CEO Roman Chiporukha. It was his team who arranged for celebrity chef Rasmus Munk to create a menu for a six hour space skimming balloon ride.

He thinks the answer is yes, noting the many things that society takes for granted that originated from space technology (the list is long and includes wireless headphones, your memory foam mattress and the humble Dustbuster).

“So it’s important to educate the public,” he says. “Once they’re educated, they’ll take more interest. Once there’s more interest, they’ll want to buy, then you’ll have economies of scale.”

On a civilian Triton dive to the bottom of Challenger Deep, the company was able to collect over 200,000 scientific samples and specimens. From those, scientists discovered 14 new species that have never been known to exist. 

Triton 3300/3 dives the Great Barrier Reef with David Attenborough. Source: Triton

Pelorus’s Jimmy Carroll points to the  distribution of wealth from million-dollar vacations. “The money was made elsewhere,” Carroll says. And now “has been distributed into countries which didn’t have the money to begin with.”

And like many other ultra luxury outfits, Pelorus also has a philanthropic wing, the Pelorus Foundation , which aims to protect at-risk wildlife and environments. 

At Blue Origin, its non-profit, Club for the Future , promotes STEM learning for kids. And it’s connected to the company’s long-term vision – to build a road to space to benefit all of Earthlings. 

“People who fly to space return to Earth with a different perspective about our planet,” Blue Origin told Skift. “They recognize its fragility and why we must preserve it.” 

But despite any technological leaps or philanthropic and scientific efforts, these controversies show little chance of abating while the demand for unique, high-stakes travel adventures grows.

“We’ve always had problems on this planet,” says Chiporukha, but, “we are explorers by nature.”

Correction: This story has been updated to remove pricing for a dive in a Triton submersible. The reported price is no longer available.

Source: Pelorus

Sarah Kopit is editor-in-chief at Skift. Contact her at [email protected] Graphics by Beatrice Tagliaferri

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Man accused of wielding machete to kidnap, sexually assault woman in Phoenix

A man who allegedly "kidnapped and assaulted" a woman in Phoenix was arrested in Louisiana, according to the Phoenix Police Department.

Police said Michael Young used a machete to kidnap and then sexually assault a woman near 20 th Street and Buckeye Road on around 9 a.m. on June 11. Phoenix officers were unable to find the 41-year-old suspect that day, but detectives found enough evidence to get an arrest warrant for Young

The suspect evaded law enforcement until Thursday, when he was arrested by the Orleans Parish Sheriff's Office in Louisiana for reasons that aren't currently known by The Arizona Republic. That parish, which is the Louisiana equivalent of a county, is where the city of New Orleans is located.

Young will eventually be sent back to Arizona to face charges, according to Sgt. Robert Scherer with the Phoenix Police Department, who added that "there is not an expected date for this extradition to be completed."

"Young will be charged with multiple felonies to include aggravated assault, sexual assault and kidnapping," Scherer told The Arizona Republic via email.

And there may be even more counts tacked on once he's back in Arizona. Scherer explained that "official charging decisions will ultimately be made by the Maricopa County Attorney’s Office after Young is extradited."

Reporter Sam Kmack covers Tempe, Scottsdale and Chandler.   Follow him on X  @KmackSam   or reach him at  [email protected] .