What could be the coverage for a theft that involves an employee fraudulently signing checks?

What could be the coverage for a theft that involves an employee fraudulently signing checks?

• A. General liability coverage
• B. Employee fraud coverage
• C. Employee theft coverage
• D. Professional liability coverage

Answer: (C)

Employee theft coverage is specifically designed to protect businesses against losses due to theft committed by employees. This coverage would apply in situations where an employee fraudulently signs checks, which constitutes stealing from the employer. Employee theft coverage not only includes direct theft of money but also extends to various forms of dishonesty by employees, making it the most appropriate choice for the situation described. In contrast, general liability coverage typically protects businesses from third-party claims of bodily injury or property damage, but it does not address issues of internal theft. Employee fraud coverage may sound relevant, but it does not typically exist as a standalone policy separate from employee theft coverage. Lastly, professional liability coverage relates to errors and omissions in a professional service context rather than theft or dishonesty, further reinforcing why employee theft coverage is the correct answer for this scenario.

Employee theft coverage is specifically designed to protect businesses against losses due to theft committed by employees. This coverage would apply in situations where an employee fraudulently signs checks, which constitutes stealing from the employer. Employee theft coverage not only includes direct theft of money but also extends to various forms of dishonesty by employees, making it the most appropriate choice for the situation described.

In contrast, general liability coverage typically protects businesses from third-party claims of bodily injury or property damage, but it does not address issues of internal theft. Employee fraud coverage may sound relevant, but it does not typically exist as a standalone policy separate from employee theft coverage. Lastly, professional liability coverage relates to errors and omissions in a professional service context rather than theft or dishonesty, further reinforcing why employee theft coverage is the correct answer for this scenario.