What type of insurance covers damages caused by employee theft?

Employee Dishonesty Insurance is specifically designed to protect businesses against financial losses due to theft or fraudulent acts committed by employees. This type of coverage can reimburse the business for losses stemming from activities such as embezzlement, forgery, and other dishonest acts committed by employees, thereby safeguarding the organization’s financial interests.

This insurance is crucial for any business since employees, who have access to company assets and finances, could potentially engage in dishonest behaviors that lead to significant financial damage. By having Employee Dishonesty Insurance, a business can mitigate the risk and impact of such unfortunate events, ensuring stability and continuity.

In contrast, General Liability Insurance primarily protects against claims related to bodily injury, property damage, and personal injury to third parties, which does not include coverage for employee theft. Property Insurance generally covers loss or damage to physical assets due to events like fire or theft, but it does not address theft committed by employees specifically. Workers' Compensation Insurance also has a distinct focus, as it provides coverage for employee injuries or illnesses related to their job, without involving theft or dishonest acts.