Florida Insurance Licensing Practice Exam

Which of the following type of employee theft best fits a business with a large turnover in its personnel?

1. The Name Schedule coverage

2. The Basic Extended Reporting Period

3. The Blanket coverage

4. The firm should reduce its number of employees

The correct answer is: The Blanket coverage

Blanket coverage would best fit a business with a large turnover in its personnel because it provides a blanket of protection that covers all employees. This is especially beneficial for businesses with high employee turnover, as it ensures that all employees are covered regardless of their length of employment. The other options may not be as suitable for businesses with high employee turnover. Option A, the Name Schedule coverage, only covers specific employees listed by name and may not cover new employees who have not been added to the schedule. Option B, the Basic Extended Reporting Period, is a type of insurance coverage and does not directly address employee theft. Option D, reducing the number of employees, may not effectively address employee theft and could negatively impact the business's operations.