In the past, insurers that covered businesses for their stolen inventory would often refuse to provide coverage, citing an "inventory exclusion", when the business's only proof of loss by theft were internal records showing that the business's inventory had decreased. Courts typically upheld insurers' denials on this basis, because, under previous inventory monitoring technology, a diminished inventory could be due to several causes - such as poor monitoring, inventory reporting fraud, or simple mistake - only one of which was theft. Because a diminished inventory alone did not prove theft, courts held that such evidence was not enough to prove, and recover for, insurable loss. Now a new technology called Radio Frequency Identification ("RFID") may change all of that. This article, published by the
Surety Claims Institute, discusses the new technology and how if may alter pre-existing law.