Florida Insurance Claims Adjuster License Practice Exam

What does Extortion coverage typically insure against?

1. Damages from public defamation

2. Loss or damages due to burglary

3. Property surrendered away from the premises due to threats of bodily harm

4. Financial losses due to business interruption

The correct answer is: Property surrendered away from the premises due to threats of bodily harm

Extortion coverage typically insures against property being surrendered away from the premises as a result of threats of bodily harm. Option A is incorrect because public defamation is not covered under Extortion coverage. Option B is incorrect because losses due to burglary are typically covered by property insurance, not Extortion coverage. Option D is incorrect because business interruption is not typically covered by Extortion coverage either. Therefore, option C is the most accurate choice for what Extortion coverage insures against.