Which of the following correctly describes a limitation for Employee Theft coverage?

The accurate description of a limitation for Employee Theft coverage is that it covers loss up to the limit only after deductibles are met. This means that when a claim is made under Employee Theft coverage, the insurer will only pay out amounts that exceed the specified deductible. The deductible represents the portion of the loss that the insured must absorb before the insurance coverage kicks in. This is a common practice in various types of insurance policies to help mitigate small claims and reduce the overall cost of premiums for policyholders.

In the context of Employee Theft coverage, understanding deductibles is crucial, as it affects how much can be claimed and the overall financial impact of a theft incident. This encourages policyholders to manage risks proactively and only submit claims for more significant losses.

The other choices do not accurately reflect the standard limitations associated with Employee Theft coverage. For instance, losses do not need to be reported immediately to qualify for coverage, and theft can occur on or off company premises. Additionally, while certain policies may exclude theft by contractors under specific circumstances, this does not universally capture the essence of Employee Theft coverage, which primarily focuses on employee-related activities.