Kidnap and Ransom Insurance: Why Film Productions Should Consider It
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Kidnap and ransom (K&R) insurance is a type of insurance that provides coverage for certain financial losses incurred as a result of a kidnapping or extortion. It typically covers costs such as ransom payments, legal fees, and expenses for crisis management consultants. Under a foreign film production insurance package, K&R coverage is available to you and should be considered to protect against potential kidnappings, extortion, wrongful detention and hijacking.
A film production may need K&R insurance to protect against certain financial losses that could result from the kidnapping or extortion of a cast or crew member while on location. Additionally, K&R insurance can also provide coverage for the cost of hiring a replacement cast or crew member, if needed.
Example of a kidnapping/ransom that happened on a movie set:
One example of a kidnapping that happened on a movie set is the abduction of John Paul Getty III. In 1973, while the younger Getty was working as an extra on the set of a movie in Rome, he was kidnapped by a criminal organization known as the "Ndrangheta" and held for ransom. This kidnapping was dramatized in the movie All the Money in the World (2017).
His grandfather, J. Paul Getty Sr., who was one of the wealthiest men in the world at the time, initially refused to pay the ransom, leading to a prolonged and highly publicized ordeal. Getty Sr. had taken out a K&R insurance policy in anticipation of something like this happening to a family member. The kidnappers initially demanded $17 million for his grandson’s release, but Getty Sr. offered to pay only $2.2 million, the maximum amount covered by the K&R policy. After further negotiations, Getty Sr. agreed to pay $3.2 million, and his grandson was released after being held for more than five months.
Hopefully, such a situation never occurs on your film/TV set, but if it does, having K&R insurance in place would be very helpful because the policy can include ransom payments. Get a quote for film production insurance (Canada & US) here and inform your broker that you are interested in K&R insurance.
About: Front Row Insurance Brokers Inc. is an independent insurance broker that specializes in the entertainment industry – specifically, the film industry. Front Row works hard to provide insurance protection for a very low cost. Should a claim occur, Front Row works diligently with clients and insurers to expedite the payment.
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