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The Theft "Inventory Shortage" Exclusion

The Special Causes of Loss form (and most crime forms) excludes losses "where the only evidence of the loss or damage is a shortage disclosed on taking inventory." In other words, if you conduct an inventory and find something missing, that doesn't necessarily mean it was stolen. But what DOES it mean? In this article, we'll discuss how this exclusion should be applied and what the courts have said about it.

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