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.