What is a characteristic of the Loss Sustained Form in Commercial Crime Insurance?

The characteristic that identifies the Loss Sustained Form in Commercial Crime Insurance is its focus on losses occurring during the policy period. This form provides coverage for losses that not only happen after the policy has been in effect but also ensures that claims are made based on incidents occurring while the policy is active.

This type of coverage is particularly important for businesses, as it helps protect against theft, fraud, or other criminal acts that impact a company’s financial stability during the duration of the policy. The primary intent is to provide a clear timeframe where the insurer is liable for losses, thus offering businesses security and clarity regarding their coverage.

The other choices suggest features that do not align with the nature of the Loss Sustained Form. It does not provide coverage for all past losses unrelated to the policy period, nor does it limit coverage solely to losses discovered after the policy ends. Furthermore, while employee theft is a part of Commercial Crime Insurance, the Loss Sustained Form encompasses various types of crime and is not restricted to losses exclusively attributable to employees.