CGL Coverage for Alleged Theft by Employee

 

We issued a CSP policy to The Housekeepers. It appears an employee took items from two homes, but there is no proof. The insured has a bond that she cannot collect under because there was no actual conviction. She is now looking to us as the general liability carrier to pay for the jewelry which was more than likely taken by her employee. The CG 0001 states – We will pay those sums that the insured becomes legally obligated to pay. The definition of insured includes employees. There is an exclusion in regards to an intentional act.

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