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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10600
Experience:  30 years of corporate, litigation and international law
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business insurance and claim The business bought insurance

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business insurance and claim

The business bought insurance of general liability and business own's policy which covers vandalism and dishonesty of employee etc. One contractor has been working for the business for 3 years and another staff for 2 years. They have the business building keys, computer administration passwords and whereabout of the medical records of patients.
Some of these records are critical for business owner in a legal lawsuit. In addition, these two people are also critical witnesses in the same lawsuit. Recently, the owner's attroney asked these two people to be witnesses to testify in a deposition arrangement. But they suddendly disappearred. They cannot reached by phone/email and they do not have fixed address. The owner is considering to file insurance claim for dishonesty of employee or vandalism for the damage to the buisness. Does it make sense to do such a claim? In addition, how the owner quantify the losses in dollar amount given the business activity is running low recently. But the value of loss to the owner is the critical information for his future prevail in his legal lawsuit (to recover his business loss). Does reporting the missing of these two people to authority a necessary step before filing the insurance claim?

Richard :

Hello, my name isXXXXX will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for. What is the nature of the loss you suffered? Was it theft of funds or something of that nature?


I lost the medical records of patients and computer access that hold business information.

I had to switch format because I could not see your answer.


Unless you have reason to believe that the employees stole the records and took steps to deny you access to the business information I do not see a basis for an insurance claim. The fact that they disappeared may well indicate that they had some involvement. For your purposes you should review your policy on the basis that they did take the records to see if the policy covers this type of loss. If you think under the terms of the policy there is any basis for a claim you should make the claim as you have nothing to lose. On the issue of whether you first have to report it to the police, you have to look at the terms of the police. If there is any doubt, then you should report the incident to the police. Whether the police take any action is not critical. You just want to make the report if there is any question.


I highly doubt that the policy will cover the loss in the lawsuit as a result of the fact that the employees are not available as witnesses.


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Richard - Bizlaw and 2 other Business Law Specialists are ready to help you
Hi James I was just following up to see how you made out. If you have any additional questions or I can help on a different topic let me know.