What frequently leads to the exclusion of employee dishonesty from a BOP?

The exclusion of employee dishonesty from a Business Owners Policy (BOP) commonly stems from the need for specific endorsements. Insurers often require these endorsements to cover employee dishonesty because standard BOP forms typically do not automatically include coverage for such risks. Employee dishonesty can encompass a range of actions—such as theft or fraud—committed by employees, which may not fall under the general coverage of a BOP. To specifically address this risk, businesses must request additional coverage through endorsements tailored to include employee dishonesty. By obtaining these endorsements, policyholders ensure that they have the necessary protection against potential losses caused by dishonest acts of their employees, thereby mitigating significant financial risks.