This claims scenario illustrates the type of situations and subsequent costs associated with employee theft:
Type of insured: Private company – Trade school
What happened: The insured’s financial aid adviser never mailed tuition refund payments to the students who dropped out of a school program and who used financial aid and student loans to pay for their tuition. Over a period exceeding one year, the financial aid adviser endorsed and deposited more than 100 refund checks into her own account.
Resolution: The insured had adequate management liability coverage that ultimately protected them from employee theft loss. The total amount of loss was over $82,000, plus nearly $2,500 in investigative expenses.