Bishop Appliance Store is covered by a commercial crime insurance policy.The policy provides coverage for "Employee Theft" on a blanket basis.When the store owner arrived to open the store for business one morning,he discovered that many small electrical appliances were missing.A surveillance tape showed a company employee had disabled the burglar alarm before leaving work,and had returned to the store later and had taken the appliances.Which of the following statements regarding this loss is true?

Question

Quizplus · Accepted Answer

The policy provides coverage for "Employee Theft" on a blanket basis, which includes coverage for property. The fact that the employee disabled the burglar alarm and then returned to steal the appliances clearly indicates that it was an act of theft by the employee. The policy does not require the employee to be caught while committing the theft for coverage to apply. Therefore, the loss is covered under the policy.

Bishop Appliance Store Is Covered by a Commercial Crime Insurance