Which type of insurance would cover damages caused by employee theft?

Crime insurance is designed specifically to provide coverage for losses resulting from criminal activities such as theft, burglary, or fraud. When it comes to damages caused by employee theft, crime insurance is the most appropriate type of coverage, as it specifically addresses the risks associated with dishonest acts committed by employees, which can result in significant financial losses for a business.

General liability insurance typically provides coverage for bodily injury and property damage to third parties but does not extend to losses caused by employee actions. Property insurance primarily covers damage to physical assets, such as buildings and equipment, but would not encompass theft or fraud by employees. Professional liability insurance, on the other hand, is intended to protect professionals against claims of negligence or errors in their services and does not cover theft or criminal acts. Hence, crime insurance is the suitable choice for addressing damages due to employee theft.