What is Third Party Employee Dishonesty coverage? Is it expensive?

Ohio Subscriber

What you are referring to is an employee of the named insured stealing from a third party. Examples would be a home health aide, employed by a home health agency, stealing from a homebound client; an individual employed by a consulting company stealing from a corporate client; or an employee of a property management company stealing from the owner of one of the buildings being managed. While employees are involved, they are stealing from third parties—not their employers.

The ISO commercial crime program, endorsement CR 04 01, Clients' Property, may be used to cover this exposure.

As to pricing, it would depend upon the details of the risk. This type of exposure is harder to control than the typical employee dishonesty coverage. It also would depend upon the limits of coverage and type of account.