Richard owns several retail stores. The employees are insured for employee theft under a commercial crime coverage form (loss-sustained form) with an insurance limit of $10,000. Richard discovered that Vera, a long-time accountant, had embezzled $5000 during the current policy period to pay the gambling debts of her son, who had been threatened with bodily harm. What is the liability of the insurer, if any, for the preceding loss? Explain your answer.