How does a 'loss sustained form' operate in Commercial Crime policies?

In Commercial Crime policies, a 'loss sustained form' specifically covers losses that occurred during the policy period. This means that if a business experiences a crime-related loss, such as theft or fraud, the insurance will provide coverage for that loss only if it takes place while the policy is in effect.

This type of form emphasizes the period during which the loss must occur in order for the claim to be valid. This coverage approach is important for businesses as it helps to define the timeframe in which the insurer is liable for claims related to criminal activities. It allows for accurate tracking of incidents and ensures that claims are managed within the context of the coverage period defined by the policy.

In contrast, other options reflect misunderstandings about the coverage. Only covering future losses would mean any past incidents occurring before the new policy period would not be covered, which contradicts the purpose of providing protection for losses during the defined policy period. Requiring proof of loss after the incident is a general claim requirement, but it does not specifically pertain to the nature of the loss sustained form. Covering all past losses regardless of the policy period does not align with the structured timeframe that this type of policy establishes, which is critical to understanding how coverage operates in practice.