Employee Dishonesty Coverage and Discovery Period

Q

Our insured business owner received a phone call from a customer stating he had been double-billed. The call was received two days before the end of the one-year discovery period on the employee dishonesty policy that we wrote for the insured. The business owner investigated and determined that the bookkeeper had been double-billing customers and pocketing the money. However, this was not determined until one month after the initial phone call, which was after the extended discovery period had ended.