Kidnap and Ransom Insurance: What Recent Cases Reveal About Business Risk

Recent kidnap and extortion cases show that businesses face growing exposure to kidnapping, ransom demands, and related threats—even in regions traditionally considered low risk. These incidents highlight the importance of understanding how kidnap and ransom insurance helps protect organizations from financial and operational disruption.

Without proper coverage and crisis response support, a single incident can result in significant loss and long-term business impact.

Key Takeaways

• Kidnap and extortion incidents can occur in low-risk regions
• Executives and high-value employees are common targets
• Events can lead to financial loss, operational disruption, and liability
• Kidnap and ransom insurance provides crisis response and recovery support
• Lack of coverage can result in significant uninsured exposure

Recent Kidnap and Extortion Cases

In recent months, two separate kidnap and extortion attacks have made headlines. Although they differ in many details, two similarities stand out: both targeted executives involved in the cryptocurrency industry and both occurred in locations not typically associated with a high risk of kidnappings.

The first incident happened in Canada in November 2024. It targeted Dean Skurka, the president and CEO of a cryptocurrency holding company. According to CBC, Skurka was kidnapped in downtown Toronto during rush hour. After forcing him out of his car, the kidnappers demanded a ransom. Once they had received the $1 million ransom electronically, they released Skurka. The company says client funds and data were not compromised.

The second incident happened in France in January 2025. It targeted David Balland, an executive who helped create Ledger – a cryptocurrency security company. According to Money Check, kidnappers forced their way into Balland’s home in central France, kidnapping both Balland and his wife. French newspapers reported that the kidnappers held the couple for nearly 24 hours and committed acts of extreme violence while demanding a cryptocurrency payment. They were freed when France’s National Gendarmerie stormed the location.

From an insurance perspective, these incidents demonstrate how quickly financial and operational exposure can escalate during a kidnap and ransom event.

Kidnap and Ransom Risk Exists Everywhere

The Q4 2024 Kidnap Ransom and Extortion Risk Map from SPS shows that kidnapping and extortion incidents are extremely rare, isolated, and not part of any specific organized activity in some countries. In the United States, Canada, and much of western Europe, the risk is low to moderate, meaning incidents are infrequent and mostly opportunistic. However, the recent kidnappings in Canada and France show that even these areas carry some risk. In many other parts of the world, the risk is medium, high, or even extreme. This expanding risk profile increases the importance of having properly structured kidnap and ransom insurance in place.

Some Americans may be surprised to learn that Mexico is high risk. The SPS December 2024 Global Insights Report shows that 85 criminal kidnappings occurred per month in Mexico in 2024.

Managing Corporate Kidnap and Extortion Risk

According to Wired, recent incidents have “spooked” the cryptocurrency industry, prompting many wealthy figures to hire bodyguard services.

These incidents should be a cause of concern for all corporations and executives, not just those in the cryptocurrency industry. It’s true that the two recent incidents both targeted cryptocurrency leaders; however, kidnappers will target anyone they think will result in a ransom payment, regardless of the industry. In addition to physical security measures, insurance plays a critical role in managing both financial and operational exposure.

In addition to hiring private security, business leaders should review their kidnap and ransom insurance needs. If a kidnapping occurs, this coverage will help in many ways that go beyond the financial losses.

How Kidnap and Ransom Insurance Protects Businesses

Kidnap and ransom insurance provides coverage for executives and high-net-worth individuals whom criminals could target. If a kidnap and ransom event occurs, the policy will provide reimbursement for the ransom per the policy terms. However, this reimbursement is only one aspect of what kidnap and ransom insurance provides. However, the value of this coverage extends well beyond financial reimbursement.

Just as many cyber insurance policies include risk management support to prevent and mitigate losses, kidnap and ransom insurance provides support before, during, and after incidents.

Coverage may include pre-trip risk assessments, executive protection, and secure journey management to minimize the chance of a kidnap and ransom incident. In the event of a kidnap and ransom, the policy will manage negotiations and work with local law enforcement to increase the odds of a positive outcome and safe return. Other benefits may include business interruption, legal liability, and psychiatric expenses.

As with any type of policy, it’s important to read the policy to understand the limits and exclusions. For example, most policies exclude coverage for people traveling in countries that have been sanctioned by the U.S. These services are essential to reducing the severity of an incident and improving the likelihood of a safe resolution.

What Does Kidnap and Ransom Insurance Cover?

Kidnap and ransom insurance typically includes coverage for kidnapping, extortion threats, wrongful detention, and in some cases business interruption resulting from an incident. Policies also provide access to crisis response services such as professional negotiators, security consultants, and legal advisors.

These capabilities are critical in helping organizations respond effectively while reducing financial loss and long-term impact.

Do Businesses Need Kidnap and Ransom Insurance?

In the past, corporations and high-net-worth individuals may have only worried about kidnap and ransom insurance if they were traveling to countries known for these attacks. Unfortunately, recent events show that no one can assume they are safe, even when staying in low-risk countries. This shift in risk exposure means organizations should reassess whether their current coverage is adequate.

Protect Your Organization from Kidnap and Extortion Risk

Kidnap and extortion incidents can create immediate financial exposure, operational disruption, and long-term reputational impact. Without the right combination of coverage and crisis response support, these events can be difficult to manage.

Tangram Insurance Services helps organizations structure kidnap and ransom insurance programs that address real-world risks, including executive protection, extortion response, and crisis management.

Explore our Kidnap, Ransom & Extortion Insurance Program to learn how we can help protect your business and manage complex risk.