Keys clause

A clause that is a standard part of a money insurance policy stating that cover will not operate for cash left in a safe overnight if a loss arises as a result of the keys to the safe or the combination for the safe being left on the premises.

Kidnap and ransom insurance

Specialist insurance provided to pay a sum of money up to a chosen limit to secure the release of the insured person following kidnap, extortion, detention or hi-jack.

Knock-for-knock agreement

An agreement that was commonplace in the motor insurance market but is now operated by few insurers on a bilateral basis, that in the event of an accident or attempt to avoid an accident involving their respective policyholders neither insurer will seek to recover his outlay but will settle losses for damage to the vehicle according to his own policy terms. In a non-fault situation the option still exists for the policyholder to seek to recover any uninsured losses from the at-fault driver's insurer.