Final answer:
The main difference between Commercial Crime and Government Crime policies is that the former protects private businesses from financial losses due to crimes like theft and fraud, while the latter guards government entities against broader and sometimes more complex criminal acts due to their provision of public goods.
Step-by-step explanation:
The major difference between a Commercial Crime policy and a Government Crime policy lies in the nature of the entities they protect and the scope of coverage. A Commercial Crime policy is designed to protect businesses from the financial losses due to crimes such as theft, burglary, fraud, embezzlement, and forged checks. Moreover, these policies are purchased by businesses in the private sector and provide coverage that aligns with the specific risks those businesses face.
On the other hand, a Government Crime policy is geared towards covering the losses that government entities might incur due to criminal acts. Such policies are part of broader risk management strategies for public organizations. Since the government provides public goods, which are non-excludable and non-rival, like national defense, it deals with different types of crimes and requires a specialized approach to crime prevention and coverage.
While both policies address theft and fraudulent acts, the nature of crimes that a government might seek to insure against can include more complex and multi-layered issues, often involving a larger scale and broader implications than those faced by private companies.