Kidnap and Ransom for Bankers

When I look at bank insurance programs I almost always find Kidnap, Ransom, and Extortion Insurance coverage in the fraud-bond (AKA the financial institution bond).

That is a good thing.

However, I have a concern with what I call extra-bank exposures. Events impacting bank employees but not directly involving banking.


  • A bank employee’s child is abducted/kidnaped by a former spouse. No ransom demand is made. The kid just vanishes.
  • An employee travels to South America on a mission trip for their church and is kidnaped.
  • A child of an employee enrolls in a youth exchange program and is studying abroad for a year and is kidnaped in Eastern Europe.
  • The president of the bank is traveling in Asia on vacation. The bank gets a threatening email with pictures of the president in her hotel.

A stand-alone policy issued by an international insurer like AIG/Chartis or Travelers offers broader coverage from what your bond includes. They also provide emergency services to help you through the event. For example, an employee is kidnaped in Italy. Who do you call? Who negotiates? How do you manage the process and event? AIG has teams of people ready to help.

Consider a stand-alone kidnap and ransom insurance policy for your employees.