ISO COMMERCIAL CRIME COVERAGES AVAILABLE ENDORSEMENTS AND THEIR USES

(July 2019)

INTRODUCTION

This list identifies endorsements available to modify the Insurance Services Office (ISO) Commercial Crime Coverage Forms and Policies. It is arranged by form number and title and briefly explains how each endorsement is used. It does not include any state specific endorsements, changes, or amendments. New endorsements introduced or changed in the 11 15 edition are in bold print.

Note: This section lists but does not otherwise address any of the various ISO Terrorism Endorsements.

Related Article: Terrorism and Insurance

A list of forms that can be used with the Commercial Crime Coverage Forms may be useful.

FORM NUMBERING

The ten-digit numbering sequence of ISO forms and endorsements has a very specific meaning.

The first two entries are alphabetical characters that indicate the line of insurance involved. For example, CR denotes Commercial Crime.
The next two digits designate the specific insurance category. Additional detail and information on these categories is in the next section below.
The next two digits are the form or endorsement number within the insurance category.
The last four digits are the edition date of the form or endorsement expressed in month and year format. These digits are not used in this analysis.

Endorsements are grouped in categories according to their purpose as follows:

CR 00	Coverage Forms and Policies
CR 04	Optional Crime and Fidelity Insuring Agreements
CR 20	Common Crime and Fidelity Endorsements
CR 25	Fidelity Amendatory Endorsements
CR 35	Crime Amendatory Endorsements
CR 45	Kidnap/Ransom and Extortion Coverage Endorsements
IL 09	Terrorism Endorsements

COVERAGE FORMS AND POLICIES (CR 00)

CR 00 20–Commercial Crime Coverage Form (Discovery Form)

CR 00 21–Commercial Crime Coverage Form (Loss Sustained Form)

CR 00 22–Commercial Crime Policy (Discovery Form)

CR 00 23–Commercial Crime Policy (Loss Sustained Form)

CR 00 24–Government Crime Coverage Form (Discovery Form)

CR 00 25–Government Crime Coverage Form (Loss Sustained Form)

CR 00 26–Government Crime Policy (Discovery Form)

CR 00 27–Government Crime Policy (Loss Sustained Form)

CR 00 28–Employee Theft and Forgery Policy (Discovery Form)

CR 00 29–Employee Theft and Forgery Policy (Loss Sustained Form)

CR 00 30–Government Employee Theft and Forgery Policy (Discovery Form)

CR 00 31–Government Employee Theft and Forgery Policy (Loss Sustained Form)

CR 00 40–Kidnap/Ransom and Extortion Coverage Form

CR 00 41–Kidnap/Ransom and Extortion Policy

OPTIONAL CRIME AND FIDELITY INSURING AGREEMENTS (CR 04)

CR 04 01–Clients’ Property

Related Article: CR 04 01–Clients' Property

CR 04 03–Extortion-Commercial Entities

CR 04 04–Extortion–Government Entities

CR 04 05–Inside the Premises–Theft of Other Property

CR 04 06–Inside the Premises–Robbery of a Watchperson or Burglary of Other Property

CR 04 07–Inside the Premises–Robbery of a Custodian or Safe Burglary of Money and Securities

CR 04 08–Employee Theft–Name or Position Schedule (09 17 change)

CR 04 09–Lessees of Safe Deposit Boxes

CR 04 10–Securities Deposited With Others

CR 04 11–Guests’ Property

Related Article: CR 04 11–Guests' Property

CR 04 12–Safe Depository

Related Article: CR 04 12–Safe Depository

CR 04 13–Destruction of Electronic Data or Computer Programs

CR 04 14–Unauthorized Reproduction of Computer Software by Employees

CR 04 15–Identity Fraud Expense

Related Article: CR 04 15–Identity Fraud Expense

CR 04 16–Telephone Toll Fraud

Related Article: CR 04 16–Telephone Toll Fraud

CR 04 17–Fraudulent Impersonation (11 15 addition)

Related Article: CR 04 15–Fraudulent Impersonation

COMMON CRIME AND FIDELITY ENDORSEMENTS (CR 20 SERIES):

CR 20 01–Policy Change (Discovery Form)

(Use with CR 00 20, CR 00 22, CR 00 24, CR 00 26, CR 00 28, and CR 00 30)

This is a miscellaneous or general coverage change endorsement used with Discovery Coverage Forms and Policies. The changes being made are entered on the endorsement schedule.

CR 20 02–Policy Change (Loss Sustained Form)

(Use CR 0021, CR 00 23, CR 00 25, CR 00 27, CR 00 29, and CR 00 31)

This is a miscellaneous or general coverage change endorsement used with Loss Sustained Coverage Forms and Policies. The changes being made are entered on the endorsement schedule.

CR 20 04–Change Extended Period to Discover Loss

(Use with CR 00 20, CR 00 22, CR 00 24, CR 00 26, CR 00 28, and CR 00 30)

This endorsement also changes the number of days in the Extended Period to Discover Loss Condition from the automatic 60 days to 60 days plus the number of days entered in this endorsement schedule. It does not affect the one-year discovery period for employee benefit plan(s).

CR 20 05–Include Retroactive Date

(Use with all except CR 00 40 and CR 00 41)

This endorsement restricts coverage to actions that occur after the retroactive date entered on the endorsement schedule. The retroactive date is set by named insured so that when multiple named insureds are on the declarations, they have the same retroactive date or different ones.

CR 20 08–Convert to an Aggregate Limit of Insurance (09 17 change)

(Use with all except CR 00 40 and CR 00 41)

This endorsement adds an aggregate limit of insurance to the policy. The aggregate limit scheduled on the endorsement schedule is the most the insurance company pays in a year regardless of the number of occurrences. This is a very restrictive endorsement and should be used carefully. The endorsement does not apply to loss sustained by an employee benefit plan.

CR 20 09–Amend Territorial Limits

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 28, CR 00 29)

This endorsement is used to add territories to the territory definition. It contains an amendment to the Legal Action Condition that requires bringing legal action in the coverage form or policy’s basic territory.

CR 20 10–Concurrent Insurance

(Use with all except CR 00 40 and CR 00 41)

This endorsement is used when there are multiple carriers. A list of the names of each carrier their applicable limits of insurance is entered on the endorsement. The coverage form or policy pays only its portion of the loss as that limit bears to the total of all limits of insurance.

Example: Company A insures for a $10,000 limit, Company B for a $10,000 limit, and Company C (this insurer) for a $20,000 limit. Company C has 50% of the total limits for indemnity in any loss. In the case of a $5,000 claim, Company C pays only $2,500 even if Company A and/or Company B do not respond.

CR 20 11–Coindemnity

(Use with all except CR 00 40 and CR 00 41)

This endorsement is used when two or more companies provide coverage for the same insured. The difference between it and CR 20 10–Concurrent Insurance is that a lead or controlling insurance company is selected. This controlling company collects premiums and sends notices of cancellation for the benefit of all companies. Any of the companies can cancel its coverage by notifying both the named insured and the controlling company. Each company pays its portion of the loss as its limit bears to the total of all limits of insurance.

CR 20 12–Binding Arbitration

(Use with all coverage forms and policies)

The named insured and the insurance company may disagree about the amount of loss and not be able to resolve the dispute. In such a case, this endorsement permits either party to resolve the issue by demanding binding arbitration.

CR 20 13–Non-Binding Arbitration

(Use with all coverage forms and policies)

The named insured and the insurance company may disagree about the amount of loss and not be able to resolve the dispute. In such a case, this endorsement permits either party to ask to resolve the issue by through the use of arbitration. What differentiates this endorsement from CR 20 12 is that under this endorsement any decision the arbitrators agree to may be appealed to a court.

CR 20 14–Loss Payable

(Use with all except CR 00 40 and CR 00 41)

This is a standard loss payable clause. It requires loss payments that involve certain property to be made to designated entities listed on the endorsement schedule.

CR 20 15–Joint Loss Payable

(Use with all except CR 00 40 and CR 00 41)

This is a standard loss payable clause. It requires loss payments that involve certain described property to be made jointly to the named insured and to designated entities listed on the endorsement schedule instead of just to one or another.

CR 20 16–Provide Notice of Cancellation to Another Entity

(Use with all except CR 00 40 and CR 00 41)

This endorsement lists other entities that are to receive notice of cancellation. Their names and the requested number of days’ notice are entered on the endorsement schedule.

It is very important to note the word “endeavor” in the endorsement. This means that the insurance company will try hard to get the notices sent in the time frames requested. However, if they don’t comply the recipients have no legal standing to challenge the cancellation.

CR 20 17–Provide Required Notice of Cancellation to Another Entity

(Use with all except CR 00 40 and CR 00 41)

This is identical to CR 20 16, except that if the insurance company fails to mail the cancellation to the listed entity within the required time frame, the cancellation is not valid for that specific entity.

CR 20 18–Include Joint Venture or Partnership as Insured(s)

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 28, and CR 00 29)

This endorsement is attempting to add coverage for joint ventures or partnerships of the named insured but in a limited way. If the named insured is legally liable for a loss, the full limit of insurance is available for the claim. However, if the named insured is not legally liable, this policy only pays proportionally.

The problem is that once the joint venture or partnership becomes a named insured, the use of the word “you” in the endorsement could be creating some ambiguities.

CR 20 19–Obligee

(Use with CR 00 24, CR 00 25, CR 00 26, CR 00 27, CR 00 30, and CR 00 31)

This endorsement adds an obligee (one to whom another is bound by a contract or legal agreement) to be protected against covered losses. The insurance company must notify a listed obligee of any cancellation. The obligee also has the right to request cancellation. The obligee has the same obligations as the named insured with respect to knowledge of current and prior dishonest acts by employees. If the obligee is aware or such dishonest acts of employees, coverage for that employee is cancelled.

CR 20 20–Calculation of Premium

(Use with CR 00 22, CR 00 23, CR 00 26, CR 00 27, CR 00 28, CR 00 29, CR 00 30, CR 00 31, and CR 00 41)

This endorsement is used with policies that have a term of more than one year or that are continuous until cancelled. It specifies that the policy can be re-rated and the premiums recalculated using the rules and rates in effect at the anniversary date, continuation date, or renewal.

CR 20 21–Exclusion of Certain Computer-Related Losses

(Use with CR 00 22, CR 00 23, CR 00 26, CR 00 27, CR 00 28, CR 00 29, CR 00 30, and CR 00 31)

This endorsement is used to exclude Year 2000 (Y2K) type events.

CR 20 22–Include Designated Person Required to Have Knowledge of Loss (Discovery Form)

(Use with CR 00 20, CR 00 22, CR 00 24, CR 00 26, CR 00 28, and CR 00 30)

Throughout the coverage forms and policies, this endorsement replaces the term “you” with the term “designated persons” but only in regard to the discovery of an occurrence. A designated person is defined in this endorsement to be any of the positions listed in the definition plus any position(s) scheduled on the endorsement. This endorsement is very helpful in setting parameters.

Example: United Front, Inc. is a large corporation with multiple offices. On 3/15/2016, Josh, an employee at one of their warehouses, stops by the warehouse one evening and notices his boss removing multiple items. Josh doesn’t tell anyone at that time. On 6/15/2016, an internal audit at the corporate headquarters begins an investigation into inventory shortages. They interview Josh on 7/15/2016 and he tells them what he witnessed on 3/15/2016.

Scenario 1: No endorsement is on the policy. Josh could be considered part of “you.” This means that the discovery date was 3/15/2016.

Scenario 2: The endorsement is on the policy. The discovery date is not established until a person occupying one of the six positions on the endorsement is provided with the information developed by the internal audit department.

CR 20 23– Include Designated Person Required to Have Knowledge of Loss (Sustained Form)

(Use with CR 00 21, CR 00 23, CR 00 25, CR 00 27, CR 00 29, and CR 00 31)

This is identical to CR 20 22 above except for changes made because this endorsement is attached only to a sustained form.

CR 20 24–Provide Limited Coverage for Loss Occurring Before Retroactive Date

(Use with all except CR 00 40 and CR 00 41)

The endorsement is identical to CR 20 05 except that a loss is covered if it began prior to the retroactive date but only if it continued after the retroactive date.

CR 20 25–Loss Reporting Threshold

(Use with all except CR 00 40 and CR 00 41)

The named insured is only required to report a loss if the amount of the loss exceeds a certain percentage of the applicable deductible. One problem is that the endorsement does not contain a schedule to show that percentage and the declarations also does not contain a place to show the percentage. That means that when this endorsement is used, an endorsement will need to be issued showing the percentage.

CR 20 26–Provide Automatic Coverage for Acquired Entities

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 28, and CR 00 29)

This endorsement provides automatic coverage for entities that the named insured purchases or acquires provided it has more than 50% of that entity’s voting rights and that the assets of the company being acquired are less than the scheduled percentage of the named insured’s total assets

CR 20 27–Provide Varying Deductibles

(Use with all except CR 00 40 and CR 00 41)

This endorsement allows deductibles to vary by named insured and insuring agreement.

CR 20 28–Add Protective Devices or Services

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 24, CR 00 25, CR 00 26, and CR 00 27)

This endorsement lists devices the named insured must maintain in proper working order. Failing to do so results in no coverage unless failing to properly maintain them is beyond the named insured’s control.

CR 20 29–Change in Control of the Insured–Notice to the Company

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 28, and CR 00 29)

This is a very restrictive endorsement. It requires that the named insured notify the company of significant ownership changes. Coverage ends if the named insured fails to do so.

CR 20 30–Amend Territory Condition–Include Worldwide Coverage (08 13 addition)

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 28, and CR 00 29)

This endorsement replaces the territory condition in the coverage form or policy. The territory is expanded to anywhere in the world. However, any legal action taken must be brought in the United States, its territories and possession, Puerto Rico or Canada. There are two exceptions to the expanded territory. Losses sustained in scheduled territories are not covered. In addition, losses sustained in territories subject to United States of America embargo or trade or other economic sanctions are not covered.

CR 20 31–Include as Joint Insured(s)

(Use with all crime coverage forms and policies)

This endorsement considers the entities listed on the endorsement schedule to be named insureds.

CR 20 32–Amend Definition of Financial Institution

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 24, CR 00 25, CR 00 26, and CR 00 27)

This endorsement revises the Inside the Premises–Theft of Money and Securities Insuring Agreement and the Computer and Funds Transfer Insuring Agreement definition of financial institution by adding and/or deleting the institutions on the endorsement schedule.

FIDELITY AMENDATORY ENDORSEMENTS (CR 25 SERIES)

CR 25 01–Exclude Designated Persons or Classes of Persons as Employees

(Use with all except CR 00 40 and CR 00 41)

This endorsement is used to revise the definition of employee by excluding specific individuals or classes of persons that are listed on the endorsement schedule.

CR 25 02–Include Designated Agents as Employees

(Use with all except CR 00 40 and CR 00 41)

All crime coverage forms and policies exclude agents as employees. This endorsement adds scheduled agents as employees but only for employee theft losses and only up to the limit of insurance on the endorsement schedule.

CR 25 03–Include Partners as Employees (09 17 change)

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 28, and CR 00 29)

This endorsement adds partners as employees for theft coverage but the coverage is limited. Any loss the insured partner-employee causes must be more than the sum of the following:

· Any amounts the named insured owes the partner

· The value of the partner's interest on the day the loss is discovered

· The deductible that applies

In other words, a partner who takes what he or she is entitled to from the partnership is not stealing. However, if the partner steals property that belongs to other partners and that property’s value is more than the deductible, the loss is paid.

The endorsement does not apply to loss sustained by an employee benefit plan but the plan has the right to recover from the partner.

CR 25 04–Include Members of a Limited Liability Company as Employees (09 17 change)

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 28, and CR 00 29)

This endorsement adds members of a Limited Liability Company (LLC) as employees for theft coverage but the coverage is limited. Any loss the insured member-employee causes must be more than the sum of the following:

Any amounts the named insured owes the member
The value of the member’s interest on the day the loss is discovered
The deductible that applies

In other words, a member who takes what he or she is entitled to from the LLC is not stealing. However, if the member steals property that belongs to other members and that property’s value is more than the deductible, the loss is paid.

The endorsement does not apply to loss sustained by an employee benefit plan but the plan has the right to recover from the member.

CR 25 06–Include Chairpersons and Members of Specified Committees as Employees

(Use with all except CR 00 40 and CR 00 41)

This endorsement treats the chairperson and all members of the committee(s) listed on the endorsement schedule as employees when they perform work of that committee or committees.

CR 25 08–Include Specified Non-Compensated Officers as Employees

(Use with all except CR 00 40 and CR 00 41)

This endorsement amends the definition of employee to include the named insured’s scheduled officers who are not compensated as employees. The officers can be scheduled by named or by title.

Note: Some examples are the chairman emeritus, honorary officers of city boards, and others in similar or related capacities.

CR 25 09–Include Volunteer Workers as Employees

(Use with all except CR 00 40 and CR 00 41)

This endorsement includes and treats all volunteers as employees and covers them on a blanket basis. However, volunteer fund solicitors are considered employees only during a fundraising campaign.

CR 25 10–Include Volunteer Workers Other Than Fund Solicitors as Employees

(Use with all except CR 00 40 and CR 00 41)

This endorsement includes and treats all volunteers as employees and covers them on a blanket basis.

Unlike CR 25 09, CR 25 10 does not cover volunteers who engage in fundraising activities.

CR 25 11–Include the Spouse and Children of Building Manager, Superintendent, or Janitor as Employees

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 28, and CR 00 29)

The spouse and any child of the building manager, janitor, or superintendent who is over the age of 18 is an employee but only while they reside with the employee. The spouse and children are considered as a unit for everything in the coverage form or policy except for the Termination of Any Employee Condition. This means that one child may be terminated from coverage due to his or her dishonest acts while coverage continues to apply to the spouse and other children.

CR 25 12–Include Treasurers or Tax Collectors as Employees (10 10 change)

(Use with CR 00 24, CR 00 25, CR 00 26, CR 00 27, CR 00 30, and CR 00 31)

The treasurers and tax collectors exclusion in the coverage form or policy is eliminated for only the treasurer or tax collector listed on the endorsement schedule. That scheduled person is then covered as an employee.

This endorsement is name specific. If a treasurer is replaced for any reason, there is no coverage for the new treasurer until his or her name is listed on the endorsement schedule.

CR 25 13–Include Students as Employees

(Use with CR 00 24, CR 00 25, CR 00 26, CR 00 27, CR 00 30, and CR 00 31)

Students enrolled in a school within the named insured’s jurisdiction who handle funds and property in connection with sanctioned school activities are covered employees. It deletes the treasurers and tax collectors exclusion in the coverage form or policy. As an example, students who collect money for a band trip to the Rose Bowl would be covered.

This endorsement can be used only by governmental entities so would not be available to private institutions.

CR 25 14–Include Officers and Employees of Federal Reserve Bank Acting as EFTS Agent as Employees

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 28, and CR 00 29)

This endorsement adds officers and employees of a Federal Reserve Bank as employees. However, this is only when they act as the named insured’s agent for electronic funds transfers (EFT). These parties are employees only when they perform services on the named insured’s behalf or when they have care or custody of the named insured's covered property.

CR 25 15–Amend Definition of Employee to Comply with Labor-Management Reporting and Disclosure Act of 1959

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 28, and CR 00 29)

This endorsement broadens the definition of employee to include officers, dues collectors, shop stewards, and shop chairpersons whom the named insured does not compensate.

CR 25 16–Add Trading Coverage

(Use with all except CR 00 40 and CR 00 41)

This endorsement applies to only the employee theft insuring agreement. It adds trading coverage that uses a genuine account to the coverage form or policy. A separate limit of insurance on the endorsement schedule applies to this coverage. This limit is part of the limit on the declarations, not in addition to it.

Example: The crime policy for Fred’s Financial Consulting has a $60,000 limit of insurance for employee theft and a separate $25,000 limit of insurance for trading. If an employee is involved in both a trading loss and a theft loss, the most the insurance company pays is $25,000 for the trading loss and up to another $35,000 for the theft loss.

CR 25 17–Add Warehouse Receipts Coverage

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 28, and CR 00 29)

This endorsement applies to only the employee theft insuring agreement. It replaces the exclusion that applies to warehouse receipts but only up to the limit of insurance on the endorsement schedule. This limit is part of the limit on the declarations, not in addition to it.

CR 25 18–Add Faithful Performance of Duty Coverage

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 28, and CR 00 29)

This endorsement applies to only the employee theft insuring agreement. It broadens coverage to include loss due to an employee failing to faithfully perform his or her job.

CR 25 19–Add Faithful Performance of Duty Coverage for Government Employees

(Use with CR 00 24, CR 00 25, CR 00 26, CR 00 27, CR 00 30, and CR 00 31)

This endorsement applies to only the employee theft insuring agreement. It broadens coverage to include loss due to an employee failing to perform his or her job faithfully. The endorsement schedule has spaces to enter limits for either the Employee Theft–per Loss Coverage or the Employee Theft–per Employee Coverage Insuring Agreement.

CR 25 20–Add Credit, Debit, or Charge Card Forgery

(Use with all except CR 00 40 and CR 00 41)

This endorsement applies to only the forgery or alteration insuring agreement. Forgery coverage is broadened to include credit, debit, or charge card forgery if the first box is selected. Forgery coverage is restricted to apply only to credit, debit, or charge card forgery if the second box is selected.

A space is available to enter a limit of insurance but the endorsement does not provide an explanation as to how that limit works with the forgery or alteration insuring agreement limit of insurance.

CR 25 21–Add Warehouse Receipts Forgery

(Use with all except CR 00 40 and CR 00 41)

This endorsement applies to only the forgery or alteration insuring agreement. Forgery coverage is broadened to include warehouse receipts and withdrawal forgery if the first box is selected. Forgery coverage is restricted to apply only to warehouse receipts and withdrawal forgery if the second box is selected.

A space is available to enter a limit of insurance but the endorsement does not provide an explanation as to how that limit works with the forgery or alteration insuring agreement limit of insurance.

CR 25 22–Include Personal Accounts of Specified Persons

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 28, and CR 00 29)

This endorsement applies to only the forgery or alteration insuring agreement. Coverage applies to the personal accounts of designated persons. The endorsement schedule has spaces for the name of each person and the limit of insurance that applies to that person. The limit is part of the limit of insurance on the declarations, not in addition to it.

This endorsement is especially useful for sole proprietors who have individual accounts, as well as business accounts on which employees may be able to write checks. Other parties, such as executives, are exposed to losses because their staff members and others familiar with their handwriting might steal the executive’s checkbook and write checks to themselves or for cash.

CR 25 23–Exclude Certain Risks Inherent in Insurance Operations

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 28, and CR 00 29)

This endorsement applies to only the employee theft insuring agreement. It excludes losses associated with issuing insurance, indemnity, or surety contracts.

CR 25 24–Exclude High-Grading Loss

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 28, and CR 00 29)

This endorsement applies to only the employee theft insuring agreement. Precious metals, precious stones and ores containing them are considered property not covered. The only exception is when an employee who has been authorized to do so receives the items and places them in a safe or vault for safekeeping.

CR 25 25–Exclude Unauthorized Advances, Require Annual Audit

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 28, and CR 00 29)

This restrictive endorsement applies to only the employee theft insuring agreement and is to be used when coverage is provided to a Labor Union. It serves two functions. First, it excludes losses caused by employees who make unauthorized advances of funds for dues or other assessments for any member. Second, it states that coverage applies only if an annual audit of the named insured's books and records.

CR 25 26–Rural Utilities Service Borrowing Corporations–Limit Amount of Insurance on Collection Agents

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 28, and CR 00 29)

This endorsement applies to only the employee theft insuring agreement. It covers losses caused by collection agents included as an employee up to the limit of insurance on the endorsement schedule. The limit is part of the limit of insurance on the declarations, not in addition to it.

CR 25 27–Rural Utilities Service Joint Insured

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 28, and CR 00 29)

This endorsement significantly changes the Joint Insured Condition and the Termination As to Any Employee Condition to provide additional protections for a borrowing corporation of the rural utilities service.

CR 25 28–Rural Utilities Services Regulations

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 28, and CR 00 29)

This endorsement is used when coverage is provided to rural utility companies in order to comply with federal regulations.

CR 25 29–Insured at Military Center

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 28, and CR 00 29)

This endorsement is required when the named insured has operations at a military center. Any member of the armed services or a department of government added as an employee of the insured while that person is providing services to it. The manner in which claims are investigated and arbitrated due to the military and governmental involvement is also described.

CR 25 30–Banks for Cooperatives and Federal Intermediate Credit Banks

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 28, and CR 00 29)

This endorsement applies to only the employee theft insuring agreement. If a loss occurs the insurance company agrees to pay the scheduled bank instead of the named insured. Coverage applies even if the named insured allows the coverage to be terminated or suspended. The bank scheduled must be notified of any cancellation within the number of days shown on the endorsement schedule.

CR 25 31–Add Blanket Excess Limit of Insurance for Specified Joint Insured

(Use with all except CR 00 40 and CR 00 41)

This endorsement applies to only the employee theft insuring agreement. It can be added if one or more joint insureds require higher limits. The joint insured(s) that require higher limits and the blanket excess limit of insurance are entered in the spaces provided on the endorsement schedule.

CR 25 32–Provide Employee Theft Coverage Excess Over a Statutory Bond Requirement

(Use with CR 00 24, CR 00 25, CR 00 26, CR 00 27, CR 00 30, and CR 00 31)

This endorsement applies to only the employee theft insuring agreement. It covers bonded employees, treasurers, and tax collectors for losses that exceed the statutory limits required by law. If a loss exceeds a certain employee’s required bond limits, this coverage pays the additional amount subject to the lesser of either the limit of insurance or the amount of loss.

CR 25 33–Employee Theft–Per Loss Excess over Employee Theft–Per Employee

(Use with CR 00 24, CR 00 25, CR 00 26, and CR 00 27)

This endorsement applies to only the employee theft insuring agreement. It explains how the per-loss limit of insurance applies if the limit for employee theft–per employee is not high enough to pay the loss.

CR 25 34–Add Schedule Excess Limit of Insurance for Specified Employees or Positions

(Use with all except CR 00 40 and CR 00 41)

This endorsement applies to only the employee theft insuring agreement. It provides excess coverage for persons and/or positions listed on the endorsement schedule up to a specific limit of insurance also on the endorsement schedule. As a result, the limit of insurance on the declarations applies to all employees and the limits on this endorsement’s schedule are in addition to the limit for all employees. When a person holds two or more position, the limit applicable to that person is the highest of the limits for those positions. This coverage applies only if a covered employee is identified as the thief.

CR 25 35–Add Schedule Excess Limit of Insurance for Specified Employees or Positions for Employee Theft Only

(Use with all except CR 00 40 and CR 00 41)

This endorsement is identical to CR 25 34 except that it adds a sentence limited to coverage to only employee theft.

Note: There is no explanation of why an endorsement that applies only to employee theft coverage needs to state that it applies only to employee theft.

CR 25 36–Change Schedule (Discovery Form)

(Use with CR 00 20, CR 00 22, CR 00 24, CR 00 26, CR 00 28, and CR 00 30)

This endorsement applies to only the employee theft – name or position schedule insuring agreement. It is used to add or delete coverage for scheduled names and/or positions. It is used with only policies or coverage forms written on a discovery basis and explains how endorsement’s changes are to be applied from a discovery standpoint.

CR 25 37–Change Schedule (Loss Sustained Form)

(Use with CR 00 21, CR 00 23, CR 00 25, CR 00 27, CR 00 29, and CR 00 31)

CR 25 38–Change Schedule Excess Limit of Insurance for Specified Employees or Positions (Discovery Form)

(Use with CR 00 20, CR 00 22, CR 00 24, CR 00 26, CR 00 28, and CR 00 30)

This endorsement is used to modify CR 25 34 or CR 25 35. It cannot be used if one of those forms is not attached to the policy. It is used to add or delete names and/or positions. It is used with only policies or coverage forms written on a discovery basis and explains how endorsement’s changes are to be applied.

CR 25 39–Change Schedule Excess Limit of Insurance for Specified Employees or Positions (Loss Sustained Form)

(Use with CR 00 21, CR 00 23, CR 00 25, CR 00 27, CR 00 29, and CR 00 31)

This endorsement is used to modify CR 25 34 or CR 25 35. It cannot be used if one of those forms is not attached to the policy. It is used to add or delete names and/or positions. It is used with only policies or coverage forms written on a loss sustained basis and explains how endorsement’s changes are to be applied.

CR 25 40–Include Expenses Incurred to Establish Amount of Covered Loss

(Use with all except CR 00 40 and CR 00 41)

This endorsement applies to either the employee theft insuring agreement or the computer and funds transfer fraud insuring agreement, or to both. Coverage applies to the cost the named insured incurs to hire the services of an accountant to determine the amount of a loss. This endorsement pays the lesser of the limit of insurance or the percent of the loss on the endorsement schedule. Any amount paid reduces the limit of insurance available to pay for the entire loss

Example: The employee theft limit of insurance is $750,000. The Costs, Fee, or other Expenses limit is $60,000. The percentage is 15%. The employee theft loss is $750,000. Based on the endorsement the named insured could receive $75,000 ($500,000 X .15), $30,000, or the actual expenses, whichever is less. However, because the except that the actual loss plus the expenses cannot exceed the total available limit of insurance, there is no funds available to pay for the expenses.

CR 25 41–Include Designated Persons or Classes of Persons as Employees

(Use with all except CR 00 40 and CR 00 41)

This endorsement applies to only the employee theft insuring agreement. It is used to broaden the definition of employee by adding the individuals or classes of persons listed on the endorsement schedule. For example, a named insured may want certain temporary employees added as employees but not all of them.

CR 25 42–Include Computer Software Contractors as Employees

(Use with all except CR 00 40 and CR 00 41)

This endorsement applies to only the employee theft insuring agreement. It adds employees of the computer software contractor listed on the endorsement schedule as employees of the named insured. All employees of a given computer software contractor are treated as one employee. The limit of insurance on the endorsement schedule is a sublimit. It is part of the limit on the declarations, not in addition to it.

CR 25 43–Add Faithful Performance of Duty Coverage for Specified Government Employees or Positions

(Use with CR 00 24, CR 00 25, CR 00 26, CR 00 27, CR 00 30, and CR 00 31)

This endorsement applies to only the employee theft–name or position schedule insuring agreement. This is blanket coverage for all employees or positions listed. It broadens coverage to include loss due to an employee failing to faithfully perform his or her job.

CR 25 44–ERISA Inflation Guard

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 28, and CR 00 29)

This endorsement automatically increases the employee theft limit of insurance for ERISA up to the minimum amount of coverage that ERISA requires. It applies only when the limit was equal to or greater than ERISA’s minimum requirement when the policy was issued.

CR 25 45–Include Virtual Currency as Money

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 24, CR 00 25, CR 00 26, and CR 00 27)

This endorsement applies to either the employee theft insuring agreement or the computer and funds transfer fraud insuring agreement, or to both. The virtual currency exclusion is modified to not apply to the virtual currency covered under this endorsement. Only the virtual currency that is traded on the scheduled exchange is covered. The insurance company has the option to settle any loss in the virtual currency or its U.S. dollar equivalent.

CR 25 46–Include Virtual Currency as Money

(Use with CR 00 28, CR 00 29, CR 00 30 and CR 00 31)

This endorsement applies to the employee theft insuring agreement .The virtual currency exclusion is modified to not apply to the virtual currency covered under this form. Only the virtual currency that is traded on the scheduled exchange is covered. The insurance company has the option to settle any loss in the virtual currency or its U.S. dollar equivalent.

CR 25 47–U.S. Department of Labor – ERISA Plan Coverage Amendments (09 17 addition)

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 28 and CR 00 29)

This endorsement is mandatory whenever an employee benefit plan is being covered. It applies to theft losses caused by the named insured, partners and members when it involves loss or damage to eligible property that is related to an employee benefit plan. Coverage also applies to loss due to fraudulent use or dishonesty involving an employee’s use of confidential information related to an employee benefit plan.

CRIME AMENDATORY ENDORSEMENTS (CR 35 SERIES)

CR 35 01–Exclude Specified Property (08 13 change)

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 24, CR 00 25, CR 00 26, and CR 00 27)

This endorsement restricts coverage. It can be used to exclude certain specific property, such as securities, liquor, cigarettes, vending machines, watches, and other target commodities and merchandise from the insuring agreement selected.

CR 35 04–Increase Limit for Specified Property Subject to Special Limit of Insurance (08 13 change)

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 24, CR 00 25, CR 00 26, and CR 00 27)

Crime coverage forms and policies cover furs, jewelry, and similar property for a $5,000 sublimit. This endorsement is used to increase the sublimit but only for the type of property described on the endorsement schedule and only for the insuring agreements selected.

CR 35 10–Forcible Entry into Premises Requirement

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 24, CR 00 25, CR 00 26, and CR 00 27)

This endorsement restricts coverage. It can be used with CR 04 06–Inside the Premises–Robbery or Safe Burglary of Other Property and/or CR 04 07–Inside the Premises–Robbery or Safe Burglary of Money and Securities. It requires forcible entry into the premises in order for safe burglary to be covered.

This means that actions by a thief who hides inside, burglarizes the safe, and then exits by the front door without leaving any marks are excluded – even if the safe was totally destroyed!

CR 35 11–Include Outside Showcases or Show Windows as Premises

This endorsement was withdrawn with the 11 09 changes. Consider using CR 35 23 or CR 35 26.

CR 35 12–Convert to Schedule Coverage

This endorsement was withdrawn with the 11 09 changes due to lack of use.

CR 35 13–Exclude Designated Premises

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 24, CR 00 25, CR 00 26, and CR 00 27)

This endorsement restricts coverage. It is used to remove designated premises from the insuring agreement(s) selected.

CR 35 14–Reduce Limit of Insurance for Designated Premises

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 24, CR 00 25, CR 00 26, and CR 00 27)

This endorsement restricts coverage. It is used to reduce the limit of insurance at designated premises for the insuring agreement(s) selected.

CR 35 15–Decrease Limit of Insurance While Premises Not Open for Business

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 24, CR 00 25, CR 00 26, and CR 00 27)

This endorsement restricts coverage. It reduces the limit(s) of insurance for the insuring agreement(s) selected on the endorsement schedule when the premises is closed for business and there is no custodian on duty.

Some businesses do not have any money on their premises when they are closed. Certain facilities may be closed for extended periods, such as arenas and stadiums. In these cases, limits can be decreased when the business or facility is not open for business.

CR 35 16–Exclude from Extortion Coverage Persons or Property at Designated Premises

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 24, CR 00 25, CR 00 26, and CR 00 27)

This endorsement applies to only the extortion insuring agreement. It excludes any location on the endorsement schedule from coverage for threats against people who work there and/or property situated there.

CR 35 17–Include Personal Extortion for Named Individuals

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 24, CR 00 25, CR 00 26, and CR 00 27)

This endorsement broadens coverage. It applies to only the extortion insuring agreement. Any person listed on the endorsement schedule is considered an insured person.

This endorsement is normally used to extend insured status to a retired chairperson, former board member, former elected official, or another person who the unendorsed insuring agreement does not cover.

CR 35 18–Change Schedule Coverage

This endorsement was withdrawn with the 11 09 changes due to lack of use.

CR 35 19–Limit Coverage to Fixtures, Fittings or Appliances or Property in Public Entrances, Hallways or Storerooms

This endorsement was withdrawn with the 11 09 changes due to lack of use.

CR 35 20–Add Property of Others

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 24, CR 00 25, CR 00 26, and CR 00 27)

This endorsement broadens coverage by adding coverage for property of scheduled others. The others are selected by class and are scheduled by insuring agreement with a limit entered. That limit can be a sublimit or can be a separate limit based on the entry made. The limit is a separate limit if “limited to” is selected. The limit is a sublimit to the limit of insurance on the declarations if “includes” is selected. However, the most paid for the property of any single person within the class is 10% of the limit on the endorsement schedule.

CR 35 21–Include Theft of Outdoor Signs

This endorsement was withdrawn with the 11 09 changes. Consider using CR 35 23 or CR 35 26.

CR 35 22–Require Record of Checks

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 24, CR 00 25, CR 00 26, and CR 00 27)

This endorsement restricts coverage. It requires either a photocopy or a complete written description of any check accepted.

CR 35 23–Extend Definition of Premises to Include Portion of Grounds Enclosed by Fence or Wall

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 24, CR 00 25, CR 00 26, and CR 00 27)

This endorsement extends coverage to the grounds where the premises is situated but only for the coverage(s) selected on the endorsement schedule. Coverage applies to only the portion(s) entirely enclosed by a fence or wall.

CR 35 24–Increase Limit of Insurance for Specified Periods

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 24, CR 00 25, CR 00 26, and CR 00 27)

This endorsement increases the limits of insurance for various insuring agreements at designated premises for specified periods during the year. The increased limit(s) applies to only covered losses discovered before the end of the specified period.

Note: This endorsement is similar to the peak season endorsement in commercial property coverage forms.

CR 35 25–Include Selling Price or Processing Charge

(Use with CR 00 20, CR 00 21, CR 00 22, and CR 00 23)

This endorsement changes the valuation terms. It adds the named insured’s processing charge to the value of raw material and material being processed. Stock that is ready to be sold is valued at its selling price less discounts and expenses that the named insured does not incur because the item is not being sold. This valuation applies to only the insuring agreement(s) selected on the endorsement schedule.

CR 35 26–Extend Premises to Entire Plot of Ground under Your Control

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 24, CR 00 25, CR 00 26, and CR 00 27)

This endorsement is similar to CR 35 23 in that it moves premises from only the interior to the outside. This is broader than the CR 35 23 in that all land that is under the named insured’s control is considered premises. There is no requirement that any of the land be fenced or walled off.

CR 35 27–Include Covered Property in Custody of Designated Agents

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 24, CR 00 25, CR 00 26, and CR 00 27)

This endorsement extends the definition of premises to include an agent’s premises. It also extends the definition of messenger to include the agent’s employees and officers. The agent’s name, address, services it performs for the named insured, and a sublimit of insurance must be entered in the spaces provided for the insuring agreement(s) selected on the endorsement schedule.

CR 35 28–Include Guests’ Property Accepted for Safekeeping

(Use with CR 00 20, CR 00 21, CR 00 22, and CR 00 23)

This endorsement provides a maximum of 10% of the limit of insurance per guest for the insuring agreements on the endorsement schedule.

This endorsement is appropriate for businesses such as hotels, inns, and lodges but it is poorly written and does not fully explain the coverage being provided CR 04 11–Guests’ Property may be more appropriate.

Related Article: CR 04 11–Guests’ Property

CR 35 29–Include Securities Held by a Depository in Trust

(Use with CR 00 20, CR 00 21, CR 00 22, and CR 00 23)

This endorsement broadens the coverage in CR 04 09–Lessees of Safe Deposit Boxes Section 1.a. It provides coverage for securities that are in specifically described safe deposit boxes when the depository holds them in trust. This coverage applies only while under dual control of the depository and a co-fiduciary.

CR 35 30–Include Bulky Property

(Use with CR 00 20, CR 00 21, CR 00 22, and CR 00 23)

This endorsement broadens the coverage in CR 04 09–Lessees of Safe Deposit Boxes Section 1.b. It eliminates the requirement that the described items be kept in a safety deposit box. The property is required only to be in a vault on the depository’s premises.

Examples of property this endorsement may cover are manuscripts, paintings, and other large or bulky items.

CR 35 31–Provide Sublimits for Money, Securities, or Checks

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 24, CR 00 25, CR 00 26, and CR 00 27)

This endorsement restricts coverage. It provides separate sublimits of insurance for money, securities, and checks (other than retail checks) for the insuring agreements on the endorsement schedule. The sublimit of insurance is part of the limit of insurance on the declarations, not in addition to it.

CR 35 32–Limit Coverage for Money and Securities Outside the Premises to Robbery Only

(Use with CR 00 20, CR 00 21, CR 00 22, CR 00 23, CR 00 24, CR 00 25, CR 00 26, and CR 00 27)

This endorsement restricts coverage when money and securities is off the premises. Only losses that involve robbery or attempted robbery are covered.

CR 35 33–Increase Limit of Insurance per Guest

(Use with CR 00 20, CR 00 21, CR 00 22, and CR 00 23)

This endorsement is used to increase the limits per guest and per occurrence in CR 04 11–Guests’ Property to the limits per guest and per occurrence on the endorsement schedule.

CR 35 34–Include Damage from Food or Liquid

(Use with CR 00 20, CR 00 21, CR 00 22, and CR 00 23)

This endorsement broadens the coverage that CR 04 11–Guests’ Property provides to include coverage for the damage that food or drink spills, leaks, or upset cause to the guests’ property.

CR 35 35–Include Property in Custody of Laundry or Cleaner

(Use with CR 00 20, CR 00 21, CR 00 22, and CR 00 23)

This endorsement broadens the coverage that CR 04 11–Guests’ Property provides to include damage to guest property while in the named insured’s care and custody for laundering or cleaning.

This endorsement does not extend coverage to the dry-cleaning establishment that receives the customer’s property from the named insured.

CR 35 36–Include Property of Guests Occupying Leased Lodging Accommodations

(Use with CR 00 20, CR 00 21, CR 00 22, and CR 00 23)

This endorsement broadens the coverage that CR 04 11–Guests’ Property provides to covered leased accommodations. Some hotels and other temporary lodging facilities occasionally provide extended lease arrangements for rooms and suites. This endorsement covers damage to property of such guests as long as the lease does not involve any business use. It does not apply to any guest who is the named insured’s employee.

CR 35 37–Include Samples or Articles Carried or Held for Sale or Delivery

(Use with CR 00 20, CR 00 21, CR 00 22, and CR 00 23)

This endorsement broadens the coverage that CR 04 11–Guests’ Property provides to include coverage for samples or property that guests hold for sale.

CR 35 38–Include Money for Full or Partial Limit of Insurance

(Use with CR 00 20, CR 00 21, CR 00 22, and CR 00 23)

This endorsement broadens the coverage that CR 04 12–Safe Depository provides to cover money, securities, and other property that belongs to the named insured’s customers at the location and for the limit of insurance on the endorsement schedule. This limit is part of the limit on the declarations, not in addition to it.

CR 35 39–Reduce Limit of Insurance for Specified Premises

This endorsement was withdrawn with the 08 07 edition because this change can be made on CR 04 12–Safe Depository’s endorsement schedule.

CR 35 40–Safe Deposit Box Transfer

(Use with CR 04 12)

This endorsement broadens the coverage that CR 04 12–Safe Depository provides. It covers customers’ property in safe deposit boxes while they are being transferred from one specified location to another. Coverage is limited to the date and time periods on the endorsement schedule.

KIDNAP/RANSOM AND EXTORTION COVERAGE ENDORSEMENTS (CR 45 SERIES)

CR 45 01–Policy Change

(Use with CR 00 40 and CR 00 41)

This endorsement can be used to make a number of different changes to the coverage form or policy.

CR 45 02–Death and Dismemberment

(Use with CR 00 40 and CR 00 41)

This endorsement adds coverage. It pays a scheduled amount to the insured person for his or her loss of any limb, hand, or foot, loss of sight in eyes, mutilation, or permanent total disability that results from a kidnapping, extortion threat, detention, or hijacking. It pays the life benefit to the person’s estate if the person dies.

CR 45 03–Products Recall Expenses

(Use with CR 00 40 and CR 00 41)

This endorsement adds coverage for specified products recall expenses that are a direct result of an extortion threat to violate the named insured’s products or goods. This is subject to the limit of insurance on the endorsement schedule.

CR 45 04–Business Income and Extra Expense

(Use with CR 00 40 and CR 00 41)

This endorsement covers the loss of business income and extra expenses that is incurred as a direct result of a covered incident. The amount paid is the lesser of the amount of loss sustained in each 24-hour period immediately following the incident or the limit entered on the endorsement schedule. Business income is defined to include payroll in addition to continuing normal operating expenses.

CR 45 05–Amend Territory Condition to Suspend Coverage for Foreign Business Operations

This endorsement was withdrawn with the 08 07 edition.

TERRORISM ENDORSEMENTS (IL 09)

Note: These endorsements are used in response to the Terrorism Risk Insurance Program Reauthorization Act of 2015 (TRIPRA). There are no longer crime specific terrorism endorsements.

Related Article: Terrorism and Insurance

IL 09 53–Exclusion of Certified Acts of Terrorism

IL 09 86–Exclusion of Certified Acts Of Terrorism Involving Nuclear, Biological, Chemical Or Radiological Terrorism; Cap On Covered Certified Acts Losses

IL 09 87– Limitation of Coverage for Certified Acts of Terrorism (Sublimit on Annual Aggregate Basis)