Which group is typically excluded from extortion coverage?

Extortion coverage is designed to protect businesses from the financial impact of extortion threats. However, there are certain groups typically excluded from this coverage due to the nature of their relationship with the insured and the potential for conflict of interest and insider knowledge.

Contract workers are generally excluded because they do not have the same level of integration into the company as full-time employees. They may lack a strong loyalty or vested interest in the company's operations and finances, making them more susceptible to being coerced in the event of an extortion situation. Their temporary status often means they do not have the same comprehensive access to sensitive information that could be exploited during an extortion event, thereby justifying this exclusion within the policy.

In contrast, employees and their relatives, as well as managers' immediate family members, often have close ties to the company and thus present a higher risk for extortion scenarios. Similarly, directors of the company are integral to its governance and strategy, which are often crucial to an extortion scheme's success.