Kidnap, ransom and extortion insurance is the part of a family office programme that is discussed least and decided most carefully. Portugal and Spain are safe countries, and nothing in this article suggests otherwise. The exposure of a wealthy family is rarely about where it lives; it follows visibility, business interests and travel — children studying abroad, principals visiting operations in higher-risk countries, a public profile that makes routines easy to observe. Our page on kidnap, ransom and extortion insurance explains the cover itself. This article looks at how a family office builds it into the wider programme.
Deciding who is covered
The first decision is the list of insured persons, and it is wider than most families expect. A well-written family policy can cover the principals, spouses, children and other relatives, household staff, and guests who are with the family at the time of an incident. Family office employees who travel on the family’s business can be included. The definitions should be checked against the people who actually live in, work in and visit the family’s homes in Portugal, Spain and elsewhere.
A corporate K&R policy owned by a family business may cover employees on business travel but not the family at home; the two should be read together so that nobody is assumed to be covered twice and actually covered once.
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Who knows about the policy
K&R wordings normally require the existence of the cover to be kept confidential, and disclosure can prejudice it. In a family office this is a governance question: the policy should be known to a very small number of people — typically one or two family members and one person in the office — and should not appear in board papers, budgets or documents circulated widely. We handle the file with the same discretion and do not publish the names of clients.
The crisis-response consultancy is the core
The most valuable part of the policy is access to a specialist crisis-response consultancy, available 24 hours a day, which advises the family from the first contact and works alongside the police — the Polícia Judiciária in Portugal, the Policía Nacional or Guardia Civil in Spain. Ransom and extortion payments are covered on a reimbursement basis, subject to the applicable law, including international sanctions rules. Many policies also give access to the consultancy before an incident: travel briefings for higher-risk destinations and advice when a threat is received.
How it fits the rest of the programme
- Household policies. Some high-value home policies include a limited kidnap or extortion extension. It is a useful start but rarely replaces a dedicated policy with a consultancy behind it.
- Cyber and fraud. Extortion today is often digital — threats to publish private information or images. The K&R and cyber policies should be read together so that online extortion is answered by one of them.
- Travel and medical. Medical evacuation and travel assistance are separate covers; the family office should know which number to call for which event.
- Security providers. If the family uses a security company, its role in an incident should be agreed with the consultancy in advance, not improvised.
What we need to obtain terms
Underwriters in this class ask few questions, but they need accurate answers: who should be covered and where they live, the countries visited regularly, the nature of the family’s business and public profile in general terms, any previous threats or incidents, and any existing cover. Sensitive details do not need to go through a web form; we discuss them directly.
Frequently asked questions
Is K&R insurance legal in Portugal and Spain?
Yes, in the form these policies take: reimbursement of payments made and of the crisis consultancy’s fees, subject to the applicable law, including sanctions rules, and in cooperation with the authorities.
Can household staff and guests be covered?
Yes, many family policies cover household staff and guests who are with the family at the time of an incident, as defined in the wording. The definitions should be checked against reality.
Who in the family office should know about the policy?
As few people as possible — typically one or two family members and one person in the office. Most wordings require confidentiality, and disclosure can prejudice the cover.
Does K&R cover online extortion?
Many wordings cover extortion threats made online, including threats to publish stolen information. It should be coordinated with the family’s cyber and fraud cover so that the event is answered once.
A confidential conversation about K&R
A general description is enough to start: who should be covered, where they live and where they travel. We reply in writing, with the discretion this cover requires.
This article is general information and does not constitute personalised, legal or tax advice. Cover, limits and exclusions are only those of the policy actually issued, after underwriting. Ransom and extortion cover operates on a reimbursement basis, subject to the applicable law. Adler & Rochefort is a commercial brand of Ownizo, Unipessoal Lda., mediador registado na ASF n.º 425591790/3.
More on this subject: Family office insurance in Portugal and Spain · Kidnap, ransom and extortion insurance