An employee, under Crime coverage, must be a natural person. A business organization is not an employee. Generally, the right to control and to direct a person makes a someone an employee.
For insurance purposes, an “employee” may also be a former employee who commits a wrongful act immediately after being let go. Managers are employees acting within the scope of their employment. Temporary workers are considered employees. Leased employees are not. Executive officers may or may not be employees for coverage purposes.
There are three ways to place employees under a Crime policy: as individuals, by position, or as groups of employees under blanket coverage. These are referred to as a name schedule, a position schedule, or a blanket schedule. Which schedule you would use depends on the employees you want covered.
Crime insurance has a wealth of endorsements used to modify the basic coverage. It takes a great deal of study on an insurance agent’s part to set Crime coverage up properly.
If you’d like to learn more, contact one of our Licensed Advisors . We’re here to help.