Canadian Accredited Insurance Broker (CAIB) Two Practice Exam

Which of the following does NOT represent a theft scenario covered under the Inside/Outside Robbery Policy?

1. Theft during transportation of goods

2. Theft from an open display while the store is open

3. Theft from a safe drop box

4. Theft resulting from employee negligence

The correct answer is: Theft resulting from employee negligence

The reason "Theft resulting from employee negligence" is the correct answer is that most Inside/Outside Robbery Policies are designed to cover theft that occurs through active criminal conduct rather than incidents where negligence is a factor. Employee negligence refers to situations where a worker may inadvertently contribute to a theft occurring, such as misplacing keys or failing to lock up properly. This type of scenario typically falls outside the scope of coverage because the loss does not directly involve a criminal act but rather an error in judgment or carelessness by the employee. In contrast, the other scenarios listed involve clear instances of theft where the action is taken with the intent to steal. For example, theft during transportation of goods, theft from an open display while the store is open, and theft from a safe drop box all involve direct acts of stealing that are intentional and criminal in nature, making them more likely to be covered by an Inside/Outside Robbery Policy. The policy generally focuses on protecting against losses that arise from theft rather than the consequences of an employee's negligent actions.