How is coverage triggered under the Commercial Crime Coverage Form?

The correct choice highlights that coverage under the Commercial Crime Coverage Form is triggered when both the loss and its discovery occur within the policy period. This means that for a claim to be valid, the loss itself must happen, and the insured must become aware of that loss during the time frame that the insurance policy is active.

This approach recognizes both the occurrence of the event that causes a financial loss and the moment the insured realizes that the loss has occurred. It is crucial in commercial crime coverage, which is particularly focused on theft, fraud, and other dishonest acts affecting businesses.

If a loss occurs outside of the policy period, even if it is discovered later while the policy is still in force, coverage would not apply. Similarly, if the discovery of a loss happens during the policy period but the loss itself occurred previously and outside the policy timeframe, the claim would also be denied.

Understanding this trigger mechanism is essential for businesses to effectively manage their coverage and ensure they are protected against potential losses stemming from criminal activities.