What type of coverage addresses losses from forgery or alteration of checks?

The correct answer, which focuses on addressing losses from forgery or alteration of checks, is specifically termed "Forgery or alteration coverage." This type of coverage is designed to protect businesses and individuals from financial losses incurred due to fraudulent activities involving checks, such as when a check is forged or altered without authorization.

Having this coverage can help mitigate the risks associated with such dishonest acts, offering financial protection and peace of mind to policyholders. It is crucial for businesses that handle checks frequently, as a single incident of forgery can lead to significant financial repercussions.

In contrast, employee theft coverage primarily deals with theft committed by the employees of a business, which is a different form of risk. Liability coverage usually protects against claims for bodily injury or property damage to third parties, while property damage coverage focuses on loss or damage to the insured's own property. These other forms of coverage do not specifically address the unique risks posed by forgery and alteration of checks, highlighting why "Forgery or alteration coverage" is the appropriate choice.