(February
2014)
E. CONDITIONS
These conditions apply in addition to the Common Policy Conditions.
2. Conditions Applicable to Insuring
Agreement A. 1: Employee Theft
a. Termination as
to Any Employee
This insuring agreement ends with respect to any employee based on the
earlier of the following:
- As soon as
the named insured, its partners, members, managers, officers, directors,
or trustees learn that an employee has committed theft or any other
dishonest act either before or after being employed.
|
Example: Sherry is
watching a rerun of a reality crime show and is shocked to see the on-screen
arrest of Jackie, who she had hired six months earlier and who she considers
trustworthy. Sherry decides not to share this information with her business
partners. Jackie disappears two months later along with half of the company’s
inventory. Coverage is denied because examination under oath reveals that
Sherry knew about Jackie’s past.
|
- On the date
specified in a notice the insurance company mails to the first named
insured. That date must be at least 30 days after the date the notice is
mailed. The notice is mailed to the last mailing address of the first
named insured that the insurance company knew about. Proof of mailing is
sufficient proof that the notice was sent.
b. Territory
Coverage applies to losses caused by employees located temporarily
outside the United States of America, its territories and possessions, Puerto
Rico, and Canada. However, it is limited to the employee being outside this
territory for not more than 90 consecutive days.
Note: This coverage does
not apply to employees who permanently relocate to other countries.
