Question

The transfer of money from inside a banking premises to a person other than a messenger outside those premises or to a place outside those premises is covered under which commercial crime coverage?

1. Employee theft
2. Forgery or alteration
3. Inside the premises theft of money and securities
4. Outside the premises robbery

Answer 1

The transfer of money outside of a banking premises to someone or somewhere else is covered under the 'Outside the premises robbery' commercial crime coverage. This differs from other crime policies like Employee theft or Inside the premises theft, and is significant for protecting businesses against various financial crimes. The correct option is 4.

Step-by-step explanation:

The transfer of money from inside a banking premise to a person or place outside those premises is covered under commercial crime coverage known as Outside the premises robbery or theft coverage. This policy type is different from other forms of commercial crime policies, such as employee theft, forgery, or alteration, and theft of money and securities that occur inside the premises.

When an employee or a messenger is transferring funds from the bank to another location and is robbed, that is a scenario where this specific coverage would apply. On the contrary, if the theft occurs by an employee within the company, it would be considered under the Employee theft coverage instead.

It is essential for businesses to understand the nuances of these insurance coverage options to ensure appropriate protection against the wide array of potential financial crimes, from the proverbial bank robber Willie Sutton scenarios to internal corporate crimes such as embezzlement.

Hence, Option 4 is correct.