When employee theft coverage is modified to include designated agents, what is the implication?

When employee theft coverage is modified to include designated agents, the coverage explicitly mentions that only specific agents named in the policy are included. This means that rather than offering blanket coverage for all agents or leaving them completely excluded, the policy specifies which individual agents are protected under the employee theft coverage. This allows for more tailored risk management by addressing specific individuals whose actions could result in theft and the consequent financial losses.

Designating agents helps the insurer and the insured clarify the scope of coverage and limit the exposure to risk associated with employee theft to only those individuals who are deemed necessary by the policyholder. This approach helps in maintaining strict control over the individuals covered by the policy and managing the risk effectively.

In contrast, broad coverage scenarios would either cover all agents without conditions, which could potentially increase liability, or have agents completely excluded, which might leave significant gaps in coverage for the organization.