Which type of coverage would help protect ABC Convenience from financial loss after accepting a fake hundred dollar bill?

The correct choice, which is money orders and counterfeit paper currency coverage, is specifically designed to protect businesses from financial losses due to accepting counterfeit currency and fraudulent money orders. In the scenario where ABC Convenience accepts a fake hundred dollar bill, this type of coverage would provide a safety net against the loss incurred from the acceptance of such fraudulent currency.

This particular coverage is important for any business that handles cash transactions, as it directly addresses the risk of counterfeit money entering circulation and being accepted as valid payment. It ensures that the business can recover the financial loss associated with the rejection of the counterfeit bill, which is crucial for maintaining its financial stability.

Employing other types of coverage listed would not specifically cover the loss from accepting counterfeit bills. Employee theft, forgery, and alteration coverages are focused on different aspects of risk management and would not apply directly to the acceptance of counterfeit currency in a retail transaction. Premises theft coverage primarily deals with losses from physical theft occurring on the business premises rather than the acceptance of fake currency. Therefore, money orders and counterfeit paper currency coverage is the most relevant option for protecting against such financial loss.