Reference no: EM132892177

Samuel owns several retail stores. The employees are insured for employee theft under a commercial crime coverage form (loss-sustained form) with an insurance limit of $10,000. Samuel discovered that Vera, a long-time accountant, had embezzled $5,000 during the current policy period to pay the gambling debts of her son, who had been threatened with bodily harm.

Is the threat of bodily harm a justifiable reason to embezzle money from a company?

As a business owner, how would you approach Vera regarding this incident?

Should Vera be terminated or receive a warning for her actions? Explain why or why not

What is the liability of the insurer, if any, for the preceding loss? Explain your answer.

Who would be responsible for theft in the event it was in the amount of $20,000 and the loss - sustained form limit was only $10,000? Explain why.