This is an excerpt from the Podcast, "Wealth Building Made Simple".https://www.facebook.com/PhillipWashingtonJr/


https://www.audible.com/pd/How-kidnap-and-ransom-insurance-works-Podcast/B09SXN58J7?ref=a_pd_AskPhi_c3_lAsin_0_1&pf_rd_p=625c212d-b95a-47db-8d56-d35a359de6e9&pf_rd_r=5SRZ7682A93M5SB9CH4M


Phillip:

So, we were talking before about the movie Taken.


Susana:

There is like four Taken movies now,  first the daughters taken then the wife is taken, who is next??


Phillip:

If you are in some countries, and somebody gets kidnapped, and they want to ransom them. How do you pay for that? You know, where do you find the money to pay for that? So, we're talking about kidnap insurance.


Susana:

It's called KNR policies or Kidnap and Ransom policies. It's almost like Fight Club. You don't talk about KNR policies. Because if you talk about a KNR policy, it means you might actually be kidnappable. So, there's a ton of people that have this but they never mention it.


Phillip:

It's like a secret club somehow.


Susana:

We see these a lot for celebrities. They have KNR policies because they are high-profile figures. Kids, family members of other high-profile members, CEOs of companies. We also see them for companies that send their employees overseas or they are a nonprofit that sends their employees overseas, they will buy Kidnap and Ransom policies for their employees.  The employees may never know. They may never know they even are covered.


Phillip:

What is the coverage? I am assuming like you buy them out in advance.


Susana:

It's interesting because they pay the reimbursement of ransom funds. They don't pay ransom funds. They will reimburse it so you got to have the money able to pay. You think about other movies where the hostage negotiator rushes into the scene, and they start talking to the kidnappers. They do pay for the negotiators, the loss of ransom in transit or other expenses, bodily harm. Another movie which is a good reference is that Proof of Life. The husband got kidnapped on a volunteer mission in South America. And so, they send in Russell Crowe, the hero who has an affair with Meg Ryan and that was kind of a hot mess, but he was with a firm that dealt with KNR.


Phillip:

So I guess it would be wise to do reimbursement, so that you get help to avoid fake claims.


Susana:

Oh, there is another movie, I was just thinking about.  Have you ever seen that movie Man on Fire, with Denzel Washington in Mexico City. That was so good. But you talked about false claims and that is what made me think of it, is the guy needed money and so he had his daughter kidnapped.


Phillip:

Are there like any exclusions? Does it cover you at any country anywhere?


Susana:

That is depending on the policy. The State Department has list of dangerous countries.  And so, if you choose to go there, there could be exclusions for that. if you choose to go there where the pirates are, you know, if you drive your boat there, I am pretty sure there's that's going to be an issue with your KNR policy.


Phillip:

Or like that, Ukraine.


Susana:

Well, you think about that, the reporters that are there. Bet you money that those networks have KNR policies on them


Phillip:

I bet Berkshire Hathaway has some of those policies.

SusanaL

It's many companies that you've heard of like, Travelers has a KNR policy, Hartford has an international travel policy that includes KNR.  Piggybacking off our travel discussion from last week, for companies who send employees that travel, they buy travel insurance, which includes workers comp, evacuation, medivac, health insurance while they're overseas. Your health insurance mostly extends when you travel, but it's kind of like an emergency. So, it means that you have to pay it and then get reimbursed if it's a true emergency. So, If you buy one of these travel policies where a KNR is often tucked into, it just kind of makes it easy turnkey solution.