What type of theft is excluded from the Personal Effects and Property of Others coverage?

The correct answer is that theft of personal effects owned by the insured is excluded from the Personal Effects and Property of Others coverage. This coverage is specifically designed to protect property belonging to others that may be in the insured's possession, which is why personal effects owned by the insured are not covered.

When a business or individual holds property for others, the coverage is primarily targeted at that property to ensure the interests of those third parties are protected. In practical terms, this means that if personal belongings that belong to the insured themselves are stolen, those losses fall under the responsibility of the insured, rather than the coverage designed for protecting the property of others.

This distinction is key in commercial insurance policies, as it delineates between property that the insured is responsible for on behalf of clients or customers versus their own personal belongings. Understanding these exclusions helps businesses accurately assess their risks and the types of coverage they might need to secure additional protection for their own property if necessary.