Legal Question in Criminal Law in California

embezzellment

we have a bookkeeper that has embezzelled approx. 100,00.00 from our small contracting buisness. we are an S Corp. and this embezzellement has almost put us into bankruptcy. Our liability insurance claims they don't cover this kind of theft. What about our homeowners insurance, or any other means of recouping our loss. the bookkeeper has no assessts


Asked on 9/05/07, 5:25 pm

2 Answers from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

Re: embezzellment

I would be surprised if your homeowner's policy covered a business loss like this, but it is possible. The answer will depend upon your role in the business and the language of your policy.

There may be other defendants you can turn to. Did anyone help the bookkeeper do this? If so, do they have assets? Did you have auditors who failed to catch the theft?

You may well be out of luck, but these avenues are at least worth exploring.

Read more
Answered on 9/05/07, 5:31 pm
Terry A. Nelson Nelson & Lawless

Re: embezzellment

Your homeowner's insurance has nothing to do with business losses. However, if you have an 'umbrella' policy, that might cover it.

If you are sure the liability insurance policy doesn't cover it, then you are SOL. If you think they are wrong in denying coverage, then you should pursue the claim and get counsel to help you in a 'bad faith denial' claim. If that's the case, feel free to contact me.

Read more
Answered on 9/05/07, 5:38 pm


Related Questions & Answers

More Criminal Law questions and answers in California