North Carolina Adjuster Practice Exam

What version of the Employee Theft insuring agreement would be most suitable for Sam's new cigar shop?

1. Employee Theft: Limited Employees

2. Employee Theft: All Employees

3. Employee Theft: Selective Coverage

4. Employee Theft: Named Employees

The correct answer is: Employee Theft: All Employees

The most suitable version of the Employee Theft insuring agreement for Sam's new cigar shop would be the one that covers all employees. This option provides comprehensive coverage against theft committed by any employee, which is particularly important for a retail environment like a cigar shop, where multiple employees may have access to cash, inventory, and sensitive areas. Using a plan that covers all employees ensures that the owner is protected against any potential theft incidents, regardless of who is responsible. This is crucial for building trust with customers and maintaining the financial stability of the business, especially in a new venture where every loss can significantly impact profitability. In contrast, options that limit coverage, such as restricting it to specific employees or only providing selective coverage, may leave gaps in protection that could expose the business to greater risk. Therefore, having all employees covered provides a broader safety net and facilitates peace of mind for the shop owner.