Does General Liability Cover Employee Theft?
CGL does not cover your direct loss when an employee steals business money or property; crime coverage may.
An employee who takes cash, inventory, or equipment creates a direct business loss that falls under a crime-policy grant, not CGL.
Review which employees and property qualify, when a loss must be discovered, the reporting deadline, and the limit. Preserve records and report the loss under the crime policy.
Coverage Guides Related to General Liability Insurance
Sources for General Liability Insurance Answers
- Commercial Insurance Guide. California Department of Insurance; Commercial General Liability; Commercial Automobile; Workers Compensation; Commercial Property. Accessed 2026-09-25.
- Commercial General Liability Coverage Form, CG 00 01 12 07. ISO; specimen hosted by Hiscox; Coverage A I.A pp.1–5; Coverage B I.B pp.6–7; Who Is An Insured II pp.9–10; Limits III p.10; Conditions IV pp.10–12; Definitions V pp.12–16. Accessed 2026-09-25.