Texas All Lines Adjuster Practice Test

What does Commercial Crime Insurance cover?

1. The loss of property in a fire

2. Employee dishonesty and theft

3. Natural disasters affecting businesses

4. General liability for accidents

The correct answer is: Employee dishonesty and theft

Commercial Crime Insurance specifically addresses risks associated with dishonesty and criminal acts within a business setting. This type of insurance provides protection against financial losses that arise from employee theft, fraud, or other dishonest acts. In the business context, employee dishonesty can include situations where an employee steals company property, falsifies expense reports, or engages in other fraudulent activities that lead to financial loss for the business. This insurance coverage is essential for businesses as it helps to mitigate the financial impact of these risks, offering peace of mind and ensuring that the business can recover from such losses. Unlike the other options which focus on different types of risks, such as property loss from fire, natural disaster impacts, or general liability, Commercial Crime Insurance targets the specific vulnerabilities related to criminal acts and dishonesty that can occur within an organization.