Canadian Accredited Insurance Broker (CAIB) Two Practice Exam

Which scenario qualifies for coverage under the Inside/Outside Robbery Policy when the incident occurs inside the premises?

1. Theft of goods during a storm

2. Kidnapping

3. Damage from a fire

4. Burglary after business hours

The correct answer is: Kidnapping

The scenario that qualifies for coverage under the Inside/Outside Robbery Policy is kidnapping. This type of coverage typically addresses incidents involving threats or violence against an individual, particularly when the crime involves unlawful taking of property through force or intimidation, even if the taking occurs inside the premises. While theft of goods during a storm, damage from a fire, and burglary after business hours involve various risks, they do not fall squarely under the ambit of an Inside/Outside Robbery Policy. A storm is a natural event that would likely be covered by property insurance rather than robbery insurance. Damage from fire is typically included under fire coverage policies. Burglary after business hours focuses on the unauthorized entry to commit theft, which is distinct from the personal threat element involved in kidnapping. Thus, the threat to an individual in the context of kidnapping makes it the scenario that aligns best with the intent and scope of robbery insurance coverage.