What does employee theft coverage protect against?

Employee theft coverage specifically safeguards businesses against the loss of money, securities, and other property resulting from dishonest actions by employees. This type of insurance is designed to mitigate financial risks that arise when employees engage in fraudulent activities, such as embezzlement or theft of company assets. By covering the direct financial losses incurred, this coverage is fundamental for businesses seeking to protect their operations and maintain financial stability.

In contrast, the other options do not align with the primary intent of employee theft coverage. Theft of inventory by customers pertains to a different issue related to shoplifting or external theft, which is typically covered by general liability insurance rather than employee theft coverage. Vandalism of company property is an entirely different risk associated with damage, not theft, and is usually covered under property or liability insurance policies. Similarly, theft of tools by subcontractors represents a risk associated with contractor agreements rather than employee actions and would typically fall under other types of insurance coverage specific to contractor dealings. Thus, the correct focus of employee theft coverage is clearly delineated in the protection against employee-related dishonest acts.