What type of events does employee dishonesty coverage typically address?

Employee dishonesty coverage is specifically designed to protect businesses from losses incurred due to fraudulent or criminal acts committed by their employees. This can include theft of money, property, or other assets belonging to the business, such as embezzlement or forgery. This type of coverage helps mitigate the financial impact on a business when an employee engages in dishonest behavior that directly affects the organization.

Choosing the correct option highlights the importance of understanding the specific risks that businesses face related to employee behavior. Accidental damages caused by employees, losses due to natural disasters, or outstanding salaries owed to departing employees are not covered under employee dishonesty policies; rather, they fall into other types of insurance or risk management categories. By recognizing the scope of employee dishonesty coverage, businesses can better safeguard their assets and ensure they are prepared for potential risks posed by internal parties.