What insurance covers loss from damage caused by employee actions?

• A. Commercial Property Insurance
• B. Commercial Crime Insurance
• C. Liability Insurance
• D. Business Interruption Insurance

Answer: (B)

The right answer is indeed Commercial Crime Insurance because this type of policy specifically addresses losses resulting from criminal activities conducted by employees, such as theft, embezzlement, and fraud. It is designed to protect businesses from financial impacts that can arise when employees engage in dishonest acts that result in the loss of money or property.

Commercial Crime Insurance differs from other types of insurance in that it concentrates on malicious actions taken by individuals within the organization. This is important for businesses, as these internal risks can often be more difficult to detect and prevent compared to external threats.

In contrast, Commercial Property Insurance primarily covers physical damage to property, while Liability Insurance focuses on claims made by third parties for bodily injury or property damage. Business Interruption Insurance helps cover lost income due to a disruption in business operations but does not specifically address losses from employee misconduct. Thus, Commercial Crime Insurance is the most suitable choice for coverage against losses due to employee actions.