Alabama Property and Casualty Practice Exam

Under a Commercial Policy, what type of loss would be covered if money is lost during a robbery?

1. Theft of property

2. Negligence of employee

3. Unintentional damage

4. Business interruption

The correct answer is: Theft of property

In the context of a Commercial Policy, the loss of money during a robbery falls under the coverage for theft of property. This type of loss is specifically included in most Commercial Property insurance policies, which typically cover different forms of theft, including robberies where the insured's property is taken forcibly. Theft of property refers to the illegal taking of items that belong to the business, which can include cash, equipment, and inventory. When money is lost due to a robbery, it is considered a direct loss resulting from theft, and the policy is designed to provide coverage for such incidents. Understanding this can also clarify why the other options do not apply in this scenario. Negligence of an employee relates to failure to exercise reasonable care in performing their duties, which would not cover the scenario of theft during a robbery. Unintentional damage generally refers to losses that occur without intent or foreseeability, which does not apply to acts of theft. Business interruption is related to the loss of income due to disruptions in business operations, but it does not cover the direct loss of physical property such as cash. Therefore, theft of property is the correct classification for a loss of money during a robbery under a Commercial Policy.