This type of insurance would pay up to the chosen limit if you willingly give something of value to someone else, with the expectation of getting the ‘thing’ back in the future, or with the plan of getting paid for that ‘thing.’
An example of this would be the following : Let us look at a clothing retailer as an example of one of our customers. This company, we will call it Kelly’s Fashions, has a bunch of really nice trunk show one-offs from last season. One day, Kelly’s Fashions receives a call from another clothing wholesaler offering to buy last year’s stock for a great price. Kelly’s Fashions sends the merchandise as promised, but there is a problem with the payment that was discovered after Kelly’s Fashions sent the merchandise. As it turns out this was a scam from the get-go – FALSE PRETENSE COVERAGE.