In a commercial crime policy, what does employee theft cover?

• A. Losses resulting from theft by employees
• B. Losses due to customer fraud
• C. Losses from natural disasters
• D. Losses from outsider vandalism

Answer: (A)

Employee theft coverage in a commercial crime policy protects a business from losses caused by dishonest acts by someone employed by the company, such as embezzlement or theft of money or property. This coverage targets internal risk—the risk that a trusted employee will steal assets.

The other scenarios fall outside this specific protection: losses from customer fraud involve the actions of customers, not employees; losses from natural disasters are handled by property or other perils coverages; losses from outsider vandalism are covered under different crime or property protections, not the employee dishonesty portion. So the concept that best fits is losses caused by theft committed by employees.