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DH Sports (DH) is a retail sporting goods store. The store, which is open seven days a week, has a lot of part-time employees. When
- DH Sports (DH) is a retail sporting goods store. The store, which is open seven days a week, has a lot of part-time employees. When Tom, the owner, began to notice some missing merchandise, he suspected shoplifting. He installed a video camera on May 1, 2020. Within a week, the video showed his evening supervisor and one of the part-time employees stealing merchandise from the store. When confronted, the supervisor admitted that they had been stealing merchandise for the last month and had also taken some cash from the register. He promised to repay Tom if he did not report it to the police. Tom fired both employees and reported the crime to the police.
They confessed to the following thefts:
Date of Theft Item Stolen Value of Stolen Item
April 5, 2020 Merchandise $200
April 13, 2020 Merchandise $400
April 19, 2020 Merchandise$350
April 27, 2020 Cash $600
May 3, 2020 Merchandise $450
The Declarations page of DH's Commercial Crime Coverage Form shows Employee Theft
coverage with a $10,000 limit of insurance per occurrence and $500 deductible per occurrence.
How much, if any, will DH's crime insurer pay for the above loss?
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