What is a primary characteristic of the Extortion Threat coverage?

The primary characteristic of the Extortion Threat coverage is that it addresses financial losses incurred due to an extortion threat. This type of coverage is specifically designed to provide protection against incidents where a third party demands payment with the intention of causing harm, such as releasing stolen sensitive information or disrupting business operations.

Under this coverage, businesses can recover financial demands made by extortionists, thus providing a safety net against monetary losses that would arise from complying with such demands. It focuses on the economic repercussions stemming from the threat itself rather than physical damage to property, impacts on market value due to data loss, or costs associated with upgrading IT security systems, which are not the primary focus of this particular coverage.