Employee Theft coverage protects against losses caused by which party?

• A. Losses caused by theft by an employee.
• B. Damage from natural disasters.
• C. Liability claims by customers.
• D. Damage to property caused by policyholder's own acts.

Answer: (A)

Employee Theft coverage protects a business from losses that result from the dishonest acts of employees, such as theft of cash, securities, or property entrusted to them. This is specifically about the employee's fraudulent behavior, which is exactly what the option mentions. The other scenarios fall outside this coverage: natural disasters are handled by property or business interruption policies, liability claims by customers are handled by liability insurance, and damage caused by the policyholder’s own acts is typically not covered under employee theft and would be addressed by other policy provisions.