Proof of employee theft

Question. My client has a business covered by a standard commercial crime policy, which includes coverage form A, employee dishonesty, and coverage form C, theft, disappearance and destruction.

Not long ago an employee was "tricked" into giving a large sum of money — the daily deposits — to a supposed security guard. No witnesses saw the guard, and no other businesses in the area had such a loss. The employee has since refused to take a lie detector test. She has also filed a workers' comp claim, citing stress from this incident. She told the doctor a gun was involved, but has later denied there was a gun.

We feel this loss should be covered, but are unsure how to proceed. How does my client prove there has been a loss? Explanatory material accompanying the policy states "loss which results from an insured…being induced by any dishonest act to voluntarily part with title to or possession of money or securities is not covered. This implies employee dishonesty which is not within the scope of this form."

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