Which coverage would a business owner need in a crime policy to cover money that may be stolen from a messenger?

• A. Outside the Premises
• B. Inside the Premises
• C. In transit between premises
• D. Employee dishonesty

Answer: (A)

The key idea is that money being handled away from the insured’s own premises and in the care of another person is protected under Outside the Premises coverage. When a messenger is carrying money and that money is stolen from the messenger, the loss occurs while the money is outside the insured’s premises and in the custody of a third party. Outside the Premises coverage is designed to insure money and securities in the care and custody of a messenger or other person away from the insured’s premises, making this the best fit for the scenario described.

Inside the Premises would cover money theft while it’s inside the business’s own location. In transit between premises is a separate coverage for money in transit during transportation, but the specific circumstance of theft from the messenger aligns with Outside the Premises because the loss happens while the money is outside the insured’s premises in someone else’s custody. Employee dishonesty covers losses caused by the insured’s own employees, not a messenger.