June 13, 2011

Our client is a paint distributor and he has several employees that are salespersons that visit clients and prospects to place orders and collect due payments from past orders. Therefore, at times, these salespersons carry cash from the company with them until they deposit the funds to company accounts. The client has a commercial crime policy. During working hours one of these salespersons was robbed by an armed third person while getting out of his car. The robber took his wallet, the company cash he had collected from clients that day and a company firearm which had been given to him by the company for his protection during work. We presented the claim to the insurance company under the crime policy under the Out of Premises Clause Coverage both for the company's money as well as the company's firearm that were stolen. We understand that the firearm is covered under the crime policy as “other property”, even though it is not money and securities as defined in the policy, given that the firearm was being transported by the salesperson. The insurance company claims there is no coverage for the firearm given that they consider the firearm not insured under the crime policy as they claim is was not being transported to a deposit or client but rather a work tool. Please advise what your opinion is.