Under the new corporate insurance policy, when an employer is charged

Under the new corporate insurance policy, when an employer is charged for damages to a third party wholly or largely as a result of actions by an employee, he is entitled to recoup the amount of the damages.

(A) he is entitled to recoup -> the employee can be he or she
(B) the employer is entitled to recoup -> employer is not entitled, the employee is entitled
(C) he or she is entitled to recoup-> correct
(D) he is entitled to recoup for-> same as A
(E) the employer is entitled to recoup for-> same as B

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Here the employer had paid the money on behalf of the employee, then how an employee is eligible to recoup the amount of the damages? The employer is entitled to recoup the amount of damages. Option C distorts the meaning here.

Ans : B

Under the policy, The employer can get reimbursed for the charges the employer paid for the damages done by any employee.
Answer choice should be clear in conveying that the employer is entitled to recoup.
Pronoun "he" or "He or She" may refer to employee. Hence ambiguous.

We are left with Option B and E.
Recoup verb takes direct object. Hence B is the correct answer.

Regards,

As per the e-GMAT vouched 3 step process
Step1: Read the sentence and understand the meaning
As per some new insurance policy , the employer is charged for some actions which the employee has performed and thus employer is eligible to recover the money from the Employee.

Step 2: Find the Errors under 7 headers as follows Mnemonics to remember these SVPMPIMO or IMPACTS(as per MGMAT)

(i) SV- Subject Verb Agreement : Employer-Charged (correct SV Pair) employee-performed (correct SV pair) - hence no Subject Verb pair error. Each subjecthas a unique verb matching in number with its subject
(ii) Verb Tense - Employer's action is correctly in present tense while employee action performed earlier is correctly in past tense. So no verb tense error here either
(iii)Pronoun- The pronoun here is ambiguos and it incorrectly seems to have the employee as its antecedent. This needs to be coorected in the correct answer choice.
(iv) Modifier: There is no explicit use of modiefiers here in this sentence.
(v) Parallelism: There are no parallel lists either which need to be compared
(vi) Idioms: recoup has been used correctly in the sentence. We need to retain it as is in the correct answer
(vii) Others: There is a change in meaning because of incorrect pronoun reference. The meaning needs to be corrected by correecting the pronun error

Step 3 : Process of Elimination

This is clearly incorrect as discussed above

This corrects the pronoun-antecedent error and correctly refers to the employer. The answer choice is promising and needs to be kept until we find an answer which conveys the same in a better way

Pronoun error same as in choice A

Again, the same pronoun error same as in choice A

Although it corrects the pronoun error but introduces unidiomatic usage of recoup for.
See the following 2 versions of the sentence.
1. The employer is entitled to recover/recoup the amount -(Correct version)
2. The employer is entitled to recover/recoup for the amount - (incorrect usage)

Hence, for the above reasons we have B as our correct answer

The answer should be B.

I know B and C are tricky options but I insist that the "he or she" refers to an employee, not employer. Since this passage is all about a new insurance policy benefits the employer, the answer should be mentioning employer.

Can someone please reveal the OA?

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