December 14, 2015
Claims Corner: Warehouse Crime
A local trucker’s relative worked in a warehouse where manufactured cookware goods were stored and then sold to restaurants. The trucker colluded with the warehouse employee to steal cookware out of the warehouse. They would sell the inventory to restaurants themselves, pocketing the cash. They doctored the inventory records to cover the theft, and the scheme continued for several years. An audit and undercover investigation eventually brought the theft to the warehouse owner’s attention, and he filed a claim against his Executive Risk insurance policy. The audit determined that nearly $1 million worth of cookware was stolen, and the warehouse operator’s crime policy covered the losses up to policy limits.