Yes. Kidnap and ransom insurance (Lösegeldversicherung) has been allowed in Germany since 1998, but only under strict rules set by the financial regulator BaFin: no advertising, a term of no more than one year and strict secrecy. Companies buy it mainly for staff in high risk countries; premiums start at a few hundred euros a year.
Premiums are underwritten case by case. Only a few figures are published.
Example
Typical range
Low risk individual (report 2026)
from about USD 500 a year
Mid-sized company with a few travellers to high risk countries (guide value)
about EUR 3,000 to 8,000 a year
Top executive travelling to high risk countries (report 2026)
several USD 100,000 a year
Figures from a published report, year in brackets.
The company figure is a guide value from quoting practice (Richtwert aus der Angebotspraxis).
For German companies the premium depends on destinations,
number of travellers and the security concept.
Worked example
Engineering firm with 4 technicians on sites abroad
The firm regularly sends technicians to countries with a higher kidnap risk and considers an annual policy.
Insured persons
all employees worldwide, no name list
Ransom sum insured
EUR 1,000,000 per event
Crisis consultants
unlimited
Premium
about EUR 3,000 to 8,000 a year
The premium is a guide value from quoting practice (Richtwert aus der Angebotspraxis). Without a policy the firm pays consultants, ransom and downtime itself.
What kidnap and ransom insurance pays
The most valuable part is not the money but the crisis consultant. In an emergency the insurer sends specialists who run communication and negotiation, liaise with the authorities and support the family. Published policy terms often cover their fees without limit.
Within the sum insured the policy also refunds ransom paid, even if lost in transit, and additional costs such as continued salaries, travel, interpreters and psychological care after release.
Until 1998 the German regulator considered ransom insurance contrary to public policy. Since then it has been allowed under conditions. Since 1 April 2026 circular 01/2026 (VA) sums them up and expressly also applies to cyber attacks and product extortion.
Key points: no advertising, no bundling with other policies except cyber insurance, a term of one year at most, a sum in line with your wealth, security advice before cover starts, secrecy and an immediate report to the police if something happens.
Who needs kidnap and ransom insurance
Typical buyers are companies whose staff travel to or work in high risk countries, firms with branches abroad and businesses exposed to extortion. Prominent or wealthy private individuals buy it too.
If you holiday in safe countries, you do not need kidnap and ransom insurance. Travel health and trip cancellation insurance matter more for you.
Secrecy is mandatory
Anyone who knows you are insured could target you more deliberately. That is why no more than three trusted persons may know about the policy, and insured employees are often not told.
Secrecy is a contractual duty (Obliegenheit). If you breach it, you put your cover at risk, so do not mention the policy to colleagues.
Limits of the policy
It does not prevent a kidnapping and cannot guarantee a release. Its value lies in professional crisis support and in protecting company funds from an unplanned outflow.
Because of the advertising ban, enquiries go discreetly through specialist brokers. Norman Nammert works as an insurance broker (Versicherungsmakler); the insurer pays the commission.
Step by step
List destination countries and the number of travellers.
Prepare a security concept and travel policy.
Ask a broker to obtain quotes from specialist insurers discreetly.
Name no more than three trusted persons.
Store the crisis consultant's emergency number securely.
Submit the renewal statement in good time before expiry.
Checklist
Crisis consultants without a cap
Ransom covered even if lost in transit
Additional costs such as salaries and therapy included
Territorial scope covers all destinations
Secrecy organised within the company
Common mistakes
Talking openly about the policy within the company
Negotiating yourself instead of calling the crisis consultant at once
Missing the renewal statement, so the contract lapses
Not involving the police although the terms require it
Questions and answers
Frequently asked
Is kidnap and ransom insurance legal in Germany?
Yes, since 1998 under regulatory conditions.
BaFin circular 01/2026 (VA) applies since 1 April 2026.
Why is there no advertising for it?
Advertising ransom insurance is banned in Germany.
Offers are only available on request.
Can private individuals buy it?
Yes, mainly prominent or wealthy people.
For normal holidays it is not needed.
Does it cover cyber extortion?
The circular includes cyber attacks.
In practice ransomware is usually covered by cyber insurance,
which may be bundled with ransom cover.
Do insured employees have to be told?
No.
They are often deliberately not informed so that the information does not leak.
