Employee Robs Customer – Is There Coverage?

Sometimes I hear of a news story that involves financial institutions where I have to scratch my head to answer my own bank insurance coverage question.

That just happened when I read THIS story about a “bank” employee who robbed a customer who had made a large cash withdrawal.  (The article says a bank. It was a credit union he worked for.)

Apparently said employee was tired of working two jobs so he decided to break into a customer’s home.

What if the injured customer decides to sue the employer?  I immediately went to a sample bank Management Liability Policy and there I think I found the coverage.

I assume the allegation would be negligent hiring.  Right there in plain language was the coverage grant… “Negligent hiring or wrongful supervision of others.” within the policies definition of the “Employment Practices Act” in the Employment Practices coverage section.

Next, I went to the exclusions in the Employment Practices coverage section…  Nope, nothing there that would remove coverage.

Then onto the exclusions applicable to all coverage sections. Again, all clear.

So, dear reader, if one of your employees goes off the rails and robs a customer. You probably have coverage – assuming you have employment practices liability insurance and assuming it is written properly and assuming you have the right limits of coverage.

I happen to know someone who can help you if you question your coverage.  Give me a call.