Amerisure loses dispute over coverage under "employee dishonesty" policy
The DeBruyn Produce Company filed a claim with its insurer, Amerisure, after it discovered that its controller, Jillone Phillips, had issued herself an additional check every payday for a number of years. The checks were issued throught the payroll account but no taxes or witholding were deducted. Amerisure refused to pay on its "employee dishonesty" policy, arguing that even though Phillips was convicted of embezzlement, her scheme was not covered under the policy because the payments were akin to excess salary or employee benefits. The Court unanimously rejected Amerisure's appeal of the trial court's decision that the theft was covered.