Canadian Accredited Insurance Broker (CAIB) Two Practice Exam

What incident would not be covered under the Inside/Outside Robbery Policy for losses outside the premises?

1. Theft from a safe drop box at the bank

2. Robbery from the custodian while engaging in their duties

3. Theft from the custodian's private residence

4. Theft during a public event

The correct answer is: Theft during a public event

The Inside/Outside Robbery Policy is designed to provide coverage for specific types of theft or robbery incidents that occur during the course of business operations, particularly involving employees and assets related to the business. The primary focus of this policy is on losses that occur on the premises or in direct connection to the activities of the business. In the case of theft during a public event, the incident typically falls outside the scope of this policy. Public events often involve a wide variety of individuals and can occur in settings that are not directly controlled or affiliated with the business's premises. Since such scenarios usually involve more general public space and the risks associated with crowds and gatherings, they may not be considered a direct business loss covered by the Inside/Outside Robbery Policy. In contrast, theft from a safe drop box at the bank, robbery from a custodian while performing their duties, and theft from a custodian's private residence relate more directly to business activities and responsibilities, making them eligible for coverage under this policy's terms. Therefore, it’s clear that theft during a public event would not come under the policy's protection.