Patrick is the owner of a liquor store that is insured under an ISO commercial crime coverage form (losssustained form) with the following insuring agreements:
■■ Employee Theft
■■ Inside the Premises—Theft of Money and Securities
■■ Inside the Premises—Robbery or Safe Burglary of
Other Property
■■ Outside the Premises
For each of the following losses, indicate whether any of the preceding insuring agreements would cover the loss. Explain your answer.
a. Patrick withdrew money from a bank on a Friday afternoon to cash the payroll checks of customers over the weekend. He drove back to the liquor store and parked his car in the store’s parking lot. As he was walking toward the liquor store, he was robbed of the cash at gunpoint.
b. A video surveillance tape revealed that a newly hired employee was stealing money from the cash register.
c. Patrick suspected that one employee was taking liquor from the stock of inventory without paying. A physical inventory revealed a shortage of five cases of Canadian whiskey.
d. A burglar forced open a locked safe and money inside the safe was taken. Also, the interior of the store was badly damaged in the burglary.
e. Because of the burglary, the business was closed for
2 days. Patrick’s sales receipts for the week were substantially reduced.
f. A robber threatened a cashier with a knife and demanded the cash receipts. The cashier resisted giving the robber the money. The robber stabbed her and fled from the store with a substantial amount of cash.
g. A customer paid for merchandise by giving the cashier a $50 money order drawn on a commercial bank. When the money order was presented to the bank for payment, the bank refused to pay because the money order had been stolen.