Employee Dishonesty Loss Does Not Trigger Coverage for Cost to Restore or Replace Valuable Papers

We have a client that suffered an employee dishonesty loss and did not have any coverage for that. However, under Valuable Papers & Records – Cost of Reconstruction, would there be coverage for the cost incurred by the insured to recreate what was taken as well as the cost for professional services needed to help determine which records had to be recreated and used to determine the loss? We think that any resulting damage from the employee dishonesty loss would not be covered either.

Ohio Subscriber

We agree that loss resulting from employee dishonesty would not be covered. The ISO additional coverage for valuable papers and records applies only to specified causes of loss, so if your form has similar or the same provision, employee dishonesty would not trigger this coverage.