Occurrence or PD When Customer Credit Card is Stolen by Employee?

Our insured's employee stole a credit card belonging to a customer. The employee then charged items on the credit card. From the standpoint from our named insured, is there an occurrence, is there property damage?

Kentucky Subscriber

Under the CGL policy, an occurrence means an accident, including conditions or repeated exposure to substantially the same general harmful conditions. Ultimately, whether property damage is caused by an occurrence hinges on fortuity; if the property damage resulted without the insured's foresight or anticipation then it is an occurrence.

As a result of the policy's separation of insureds clause, each insured is considered a separate insured by the CGL form. Therefore, unless the named insured knew about the employee's theft and approved it, took part in it, or otherwise authorized it, there is an occurrence under the policy because the property damage resulted without the insured's foresight or anticipation.

However, the only PD here is the cost of the actual plastic card through its loss of use. The CGL form is not going to pay for the charged items since those are not PD as defined.