What does employee theft coverage protect against?

Employee theft coverage is designed specifically to protect businesses from financial losses that occur as a result of employees stealing from the company. This type of insurance provides coverage for loss of cash, securities, and other types of property directly taken by employees through dishonest acts.

When businesses face risks associated with internal theft, employee theft coverage can provide critical financial support to recover losses. This coverage is essential because employee theft can often be more difficult to detect than theft from external sources, making it a significant risk for organizations.

The focus of employee theft coverage on cash and securities is particularly important, as these assets are often targeted by employees seeking immediate financial gain. Therefore, the correct choice highlights the specific kind of loss that this insurance is intended to address, ensuring businesses can safeguard their financial interests against dishonest acts committed by their own staff.