My Military

We have two sons in the service - 1 Army, 1 Navy.

Got a call today from Army Son that he is back on US soil from 11 months in the desert.  The sun is brighter today.  The air is crisper. My wife is smiling.

Now, back to our regular programing...

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Dishonest Employees and Crime Insurance

I have posted about this in the past.

Most crime policies exclude acts by an employee who is known to have committed a past dishonest act. That exclusion removes coverage when a manager knows that an employee has stolen a pencil, and then six years later is found to have stolen $200,000.

Goofy!

Here is the wording from a Travelers' crime policy I am reviewing. Much better!

This Crime Policy terminates as to any Employee:

a. as soon as the Insured's partner, any of the Insured's Management Staff Members, or any Employee with managerial or supervisory responsibility not in collusion with the Employee becomes aware of any dishonest or fraudulent employment related act involving an amount in excess of $10,000; or

b. 60 days after the Insured's partner, any of the Insured's Management Staff Members or any Employee with managerial or supervisory responsibility not in collusion with the Employee becomes aware of any dishonest or fraudulent non-employment related act; either of which acts were committed by such Employee in the Insured's service, during the term of employment by the Insured or prior to employment by the Insured, provided such dishonest or fraudulent non-employment related act involved Money, Securities, or Other Property in an amount in excess of $10,000.

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Crime Insurance - No Coverage For Owners

Here is an exclusion I see quite often in employee dishonesty and crime policies:

"This Crime Policy will not apply to loss resulting directly or indirectly from any fraudulent, dishonest, or criminal act committed by the Insured, the Insured's natural person partners, any LLC Member or Officer-Shareholder, whether acting alone or in collusion with others."

This means no coverage for theft by an owner.

Imagine there are five owners, and one steals. Most insureds would expect there to be coverage.

Nope!

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Policy Form Number Decoding

It dawned on me that the un-initiated in insurance traditions don't know the rhyme or reason to insurance policy form numbers.

A policy form listed as "CG0001 1001" means that it is a commercial general liability form - CG - the form number is 0001 and the edit date is 10/2001.

Here are some of the prefix codes most commonly used by insurers in the ISO (Insurance Service Office) system of policy forms.

HO Homeowners
BOP Business Owners
PP Private Passenger Auto
CP Commercial Property
CA Commercial Auto
DP Dwelling Property
CG Commercial General Liability
IM Inland Marine
DP Dwelling Property
CU Commercial Umbrella
CR Crime

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