Does K&R Cover Blackmail?

Usually yes, when the blackmail meets the policy's definition of extortion. Chubb's K&R product lists extortion as a covered event and pays for whatever is handed over to resolve it, whether money, cryptocurrency or physical property. Travelers says its K&R cover is built to limit the financial impact of kidnapping, extortion or detention.

If the threat is to leak stolen data or attack your systems, check your cyber policy as well. Before you buy, ask the insurer to confirm in writing whether a threat to disclose damaging information counts as extortion, and what notice and consent steps you must follow before anything is paid.