4. 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

(B) the employer is entitled to recoup

(C) he or she is entitled to recoup

(D) he is entitled to recoup for（B）

(E) the employer is entitled to recoup for

不懂为什么不可以选C？

看过网上的讨论说是 he or she 指代不清，但这句话不是只有一个one employee 么？何来指代不清之嫌？请指教！