What does ransom/extortion coverage pay for?

Ransom/extortion coverage is specifically designed to address the financial implications of threats or acts of coercion that involve demanding payment, typically to recover a kidnapped individual or for the return of stolen property. The primary purpose of this type of coverage is to protect against losses incurred when a business or individual is compelled to pay a ransom or extortion fee due to threats.

In the context of the correct answer, this coverage pays for the theft, disappearance, confiscation, or destruction of money, securities, or other property while it is being transported by a messenger specifically for the purpose of making a ransom or extortion payment. This means that if a business incurs a loss while attempting to comply with the demands of an extortionist, the expenses or losses associated with that transaction are covered.

The other options do not align with the specific intent of ransom/extortion coverage. The theft or destruction of company vehicles pertains to property damage or theft, which is covered under different types of insurance policies. Loss of personal belongings during travel is related to personal property coverage, and financial loss due to a business shutdown stems from business interruption insurance, neither of which directly fits the parameters of ransom/extortion incidents.