Extortion coverage applies to property surrendered away from the premises as a result of a threat to do bodily harm to whom?

Extortion coverage applies to property surrendered away from the premises as a result of a threat to do bodily harm to whom?

• A. The insured
• B. An employee
• C. A relative or invitee who is being held captive
• D. The insurer

Answer: (D)

Extortion coverage responds when property is surrendered away from the premises because someone threatens bodily harm. In this policy, the threat can be directed at the insurer, meaning if criminals threaten to injure the insurer (or its representative) to force surrender of property, that loss falls under extortion coverage. The idea is to protect the insured by reimbursing extortion-related losses that happen as a result of threats tied to the insurer. While threats to the insured, an employee, or a relative being held captive are also relevant in other contexts, this particular wording identifies the insurer as the party whose threat triggers the coverage.

Extortion coverage responds when property is surrendered away from the premises because someone threatens bodily harm. In this policy, the threat can be directed at the insurer, meaning if criminals threaten to injure the insurer (or its representative) to force surrender of property, that loss falls under extortion coverage. The idea is to protect the insured by reimbursing extortion-related losses that happen as a result of threats tied to the insurer. While threats to the insured, an employee, or a relative being held captive are also relevant in other contexts, this particular wording identifies the insurer as the party whose threat triggers the coverage.