What does the term "employee theft coverage" refer to?

Employee theft coverage specifically relates to the protection against financial losses incurred due to the embezzlement or theft of funds by employees. This type of coverage is crucial for businesses, as it helps to safeguard against dishonest acts committed by individuals within the organization. Employees who have access to financial resources or sensitive information can potentially exploit that access for personal gain, leading to significant monetary losses for the company.

In the context of the coverage, it's important to note that it does not extend to physical loss of property unrelated to the employee's actions regarding funds, nor does it cover damage inflicted by employees themselves or thefts conducted by outside parties. Therefore, employee theft coverage specifically targets the internal risks associated with employee dishonesty, focusing on the embezzlement aspect directly tied to their role within the company.