What type of coverage is designed to protect against losses caused by employee dishonesty?

Employee theft coverage is specifically designed to protect businesses from losses incurred due to dishonest acts committed by employees, such as stealing cash, inventory, or other property. This type of coverage is crucial for businesses because it provides financial protection in situations where an employee takes advantage of their position to commit fraud or theft.

While commercial property insurance and general liability insurance provide essential protections for businesses, they focus on physical damages to property and liability claims from third parties, respectively, rather than protecting against internal misconduct. Employee fraud insurance, while sounding similar, is not a standard term in insurance and can refer to various types of losses that may not specifically address theft. The precise nature of employee theft coverage directly aligns with the need to safeguard against losses from dishonest actions of employees, making it the most fitting choice.