Does K&R Insurance Cover Ransom Payments?

Chubb’s U.S. K&R product summary lists a ransom insuring clause and says its product can cover consideration used to resolve a covered kidnapping or extortion attempt. That is a description of Chubb’s product, not a universal promise that all policies pay every demand. Policies can differ in whether costs are reimbursed or paid on behalf of the insured and may require prompt notice, insurer consent, or use of designated response providers.

Before an incident, review the ransom definition, per-event and aggregate limits, retention, approval process, proof requirements, and sanctions provisions. A policy does not itself establish that a payment is lawful. Do not assume a payment can be advanced or that a demand will be reimbursed without satisfying the issued wording.