Which type of coverage would protect against losses due to employee theft?

Employee dishonesty coverage is specifically designed to protect businesses from losses incurred due to the theft or fraudulent acts committed by employees. This type of insurance provides financial restitution for stolen property or funds, ensuring that a company can recover from the impact of such dishonest actions.

While general liability coverage protects against third-party claims for bodily injury or property damage, it does not cover losses resulting from employee theft. Business interruption insurance compensates for lost income during a time when a business is unable to operate due to covered events, but it does not address theft by employees. Workers' compensation insurance is focused on providing benefits to employees who are injured on the job and does not relate to theft activities. Thus, employee dishonesty coverage is the tailored solution for protecting against losses from internal theft and is the correct choice.