Employers' Liability Assurance Corp. v. Reed's Refrigeration Service, Inc.

This is an appeal from a summary judgment for the plaintiff (Reed) against the defendant (the Insurance Company) in a suit under a “Comprehensive Dishonesty, Disappearance and Destruction Policy” issued by the Insurance Company to Reed, for which the premium was duly paid. The issue is whether the plaintiff’s loss through cashing a bad check for a dishonest employee was covered by the policy. The employee was prosecuted and sentenced on this and two other bad check charges.

The relevant provisions of the policy are contained in an insuring agreement and in the definitions. Under the former the…