Insurer Owes Pa. Church For $1.2M Employee Theft, Suit Says

Law360 (February 22, 2021, 5:34 PM EST) -- Brotherhood Mutual Insurance Co. is on the hook for more coverage in a former church employee's $1.2 million embezzlement, the Pittsburgh church and its child education program said in a lawsuit removed to Pennsylvania federal court Monday, arguing a $250,000 insurance payment doesn't satisfy their separate losses.

Westminster Presbyterian Church of Upper St. Clair and WECEP LLC, which had filed suit in Allegheny County trial court, are seeking another $250,000 payment by the insurer under ministry personnel dishonesty coverage because the theft by David Reiter, a former church administrator, affected both the church and the child education program.

Although not a...

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