Acme Carrier’s driver had one too many customers. In between the owner of the imported shrimp and the purchaser of that shrimp, the driver decided to insert his own purchaser. When the 200 cases of shrimp the driver was supposed to deliver didn’t show up — questions were asked.

The driver admitted to the police that he had stolen the shrimp. The owner of the shrimp turned to Acme Carrier’s motor truck cargo insurance carrier for reimbursement – not because of employee theft but because of negligent supervision by Acme.

The courts ruled that the employee theft exclusion overruled the negligent supervision and the claim was denied.

Click here for more detail on this court case.

Employee theft is excluded from almost every commercial lines policy. The only policy that specifically covers theft by employees is the Commercial Crime Policy. The best part is that the coverage is very broad and applicable to most situations. There are also endorsements to expand coverage to additional situations.

Click here to discover more about the
ISO Commercial Employee Dishonesty coverage.

Everyone believes that their closest and most trusted employees would never betray them. Unfortunately, they do. How do you discuss this reality with your client without offending him or her? Ask the questions as part of the Risk Survey/Commercial! Just check the employee dishonesty box to have it included in the natural flow of the survey.

Click here to view a sample Risk Survey/Commercial
Employee Dishonesty questionnaire.

If your clients are reluctant to purchase employee dishonesty coverage, a reminder might be helpful. Next time the newspaper has an article regarding an employee theft, include a copy of the article with a letter asking them if they would like to consider adding the coverage.

Click here for a business building letter
you might consider sending.

Risk Survey/Commercial is constantly being updated with new classifications. Some of the more recent additions are:

Have you found what you need in the Producer OnLine? Is there a classification to add to the Producer's Commercial Lines Risk Evaluation System or a subject that you would like to see covered in PF&M?  Contact us now.

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