North Carolina Adjuster Practice Exam

Which insurance is specifically designed for losses from employee theft?

1. General Liability Insurance

2. Commercial Property Insurance

3. Employee Theft Insurance

4. Workers' Compensation Insurance

The correct answer is: Employee Theft Insurance

Employee Theft Insurance is specifically designed to cover losses resulting from theft committed by employees. This type of insurance provides financial protection for businesses against losses incurred when employees steal money, securities, or inventory. It addresses the unique risks associated with internal theft, which can lead to significant financial damage that may not be covered by other standard business insurance policies. General Liability Insurance primarily covers third-party claims for bodily injury, property damage, and personal injury, but does not extend to theft by employees. Commercial Property Insurance protects business property from damage or loss due to events like fire or natural disasters but does not cover loss from employee dishonesty. Workers' Compensation Insurance provides benefits to employees who are injured on the job, addressing workplace injuries rather than theft-related losses. Thus, Employee Theft Insurance is the targeted solution for mitigating the financial impact of employee theft, making it the appropriate choice in this context.