What is a typical characteristic of crime insurance?

Crime insurance is specifically designed to address risks associated with criminal activities that could lead to financial loss for businesses or individuals. A typical characteristic of crime insurance is its protection against employee theft. This type of coverage is essential for businesses as it helps safeguard against losses incurred from dishonest acts committed by employees, such as theft of money, securities, or property.

This coverage is crucial because employee theft can significantly impact a business's financial health. Unlike general property insurance that may cover losses due to natural disasters or accidental damages, crime insurance focuses specifically on the malicious acts of individuals. Therefore, businesses often purchase this specialized insurance to mitigate the risks of such internal threats and ensure their financial stability.

Other choices may include various types of coverage, but they do not represent the specific focus of crime insurance, which is fundamentally about protecting against criminal acts rather than accidental losses, natural disasters, or general business losses.