COMMERCIAL CRIME COVERAGES EXPOSURE ANALYSIS CHECKLIST

(July 2019)

This checklist is designed to assist in beginning the analysis of the commercial crime coverages. This is only a starting point and additional risk specific questions may arise as the exposures are developed. This analysis should be combined with exposure analysis checklists for other coverages to develop a complete picture of the insured’s operations.

This checklist is designed to supplement the ACORD application.

A list of endorsements may be helpful as you discuss exposures with your client.

ISO Commercial Crime Coverages Available Endorsements and Their Uses

ISO Commercial Crime Coverages Endorsements Checklist

GENERAL INFORMATION

Legal business name(s):

______________________________________________________________________________________

Mailing address:

______________________________________________________________________________________

Type of entity:

___ Individual	___ Corporation	___ Sub-S Corp
___ Partnership	___ Joint Venture
___Not-for-profit	___ Limited Liability Company

SIC Code(s): ___________________________________________________________________________

NAICS Code(s): _________________________________________________________________________

Federal ID Number: ______________________________________________________________________

When did the applicant start business operations? ______________________________________________

When did the present management assume control? ____________________________________________

How many years’ experience does the owner have in this type of business? __________________________

How many years’ experience does the manager have in this type of business? ________________________

Has the applicant ever been involved in a bankruptcy procedure? ___ Yes ___ No

If yes, explain including the type of bankruptcy, the filing date, and the resolution.

______________________________________________________________________________________

Names of subsidiary companies or joint ventures that are not part of this application:

______________________________________________________________________________________

Important People	Name	Phone Number
Owner/Principal
Other Decision Makers
Plant and Grounds
Financial
Legal
Claims

The applicant’s primary operations are:

_______________________________________________________________________________________

The applicant’s secondary and/or incidental operations are:

_______________________________________________________________________________________

The applicant used to be involved in the following operations, but they have been discontinued:

_______________________________________________________________________________________

The hours of operations are: ________________________________________________________________

How many days per week is the applicant open for business? _____

Is this a seasonal operation? ___ Yes ___ No

If yes, what is the season? From ____________________________ to _____________________________

Does the applicant have a safety program? ___ Yes ___ No

If yes, answer the following:

Name of safety director: ____________________________________________________________

Safety director phone number: _______________________________________________________

Safety director email address: _______________________________________________________

Attach a copy of the safety program.

Does the applicant have a disaster plan? ___ Yes ___ No

If yes, answer the following:

Name of disaster coordinator: ________________________________________________________

Disaster coordinator phone number: ___________________________________________________

Disaster coordinator email address: ___________________________________________________

Attach a copy of the disaster plan.

PREMISES CRIME PROTECTION: BURGLAR ALARMS

Describe any burglary exposures beyond what is usual to the applicant’s business.

______________________________________________________________________________________

Describe any special features of the applicant’s the burglary alarm or safe or vault systems that are not noted elsewhere.

______________________________________________________________________________________

CRIME–EMPLOYEE DISHONESTY

PRIOR POLICY

Provide the policy number, carrier, limits, and the inception and expiration dates of any policy that provided employee dishonesty coverage for the applicant over the last five years.

Policy Number	Carrier	Employee Dishonesty Limit	Inception Date	Expiration Date

Note: This information is needed when a loss is discovered in the current policy year for an occurrence in prior years.

EMPLOYEES

Does the applicant employ any person who has committed a theft or dishonest act? ___ Yes ___ No

Note: These employees are excluded from coverage and should not be included for rating purposes.

Are all potential employees screened prior to employment? ___ Yes ___ No

Are references required and verified? ___ Yes ___ No

Does applicant contract with another firm to lease employees? ___ Yes ___ No

Does applicant lease employees without using an outside agency? ___ Yes ___ No

Does applicant use volunteers? ___ Yes ___ No

Note: Temporary leased employees who substitute for regular employees are covered. Others, including volunteers, are excluded and should not be included for rating purposes.

MANAGEMENT CONTROLS

Does a person outside of the applicant’s accounts payable unit verify the accuracy of all monthly paid invoices? ___ Yes ___ No

Are invoices marked “paid” at the time payments are made in order to prevent issuing duplicate payments to fictitious entities? ___ Yes ___ No

Does the applicant implement improvements in internal controls that auditors suggest? ___ Yes ___ No

Does the applicant maintain an adequate separation of duties between employees who:

Receive money and those who keep books? ___ Yes ___ No

Disperse money and those who keep books? ___ Yes ___ No

Reconcile bank accounts and those who deposit or withdraw? ___ Yes ___ No

FORGERY OR ALTERATION

Are checks and drafts kept in a locked area? ___ Yes ___ No

If yes, describe the area where they are kept and the person(s) who controls the keys.

______________________________________________________________________________________

Does the applicant use electronic signatures? ___ Yes ___ No

If yes, describe security methods utilized.

______________________________________________________________________________________

Does the applicant use facsimile signatures? ___ Yes ___ No

If yes, describe security procedures in place.

______________________________________________________________________________________

MONEY AND SECURITIES

Premises # _______ Building # _______

Location address: _______________________________________________________________________

INSIDE THE PREMISES

Does the applicant keep money and securities in a locked safe, vault, or other type of receptacle? ___ Yes ___ No

If yes, describe the safe, vault, or other receptacle.

______________________________________________________________________________________

If no, where are they kept?

______________________________________________________________________________________

Does this location require a different limit than other locations? ___ Yes ___ No

If yes, what is this location’s limit? $ ____________________

Does the applicant have any peak periods with significant increases in the amount of cash on hand? ___ Yes ___ No

(Examples: Churches/synagogues – high holy days; nonprofits – fund raising events)

If yes, amount $____________ Time period(s) ___________________________________________

Does the applicant place all cash registers in well-lit areas that are easily seen from the street and/or other parts of the premises? ___ Yes ___ No

Are customers' credit/debit cards checked for validity? ___ Yes ___ No

Does the applicant accept personal checks? ___ Yes ___ No

Does the applicant have a safe deposit box? ___ Yes ___ No

If yes, answer the following.

Where is the applicant’s safe deposit box? Name and address of depository:

______________________________________________________________________________________

What is the minimum value of the contents in the safe deposit box? $_______________

What is the maximum value of the contents in the safe deposit box? $_______________

OUTSIDE THE PREMISES

What is the maximum amount of money and securities that any one person can carry off premises?

$________________

Do these individuals vary:

the time of day when they go to the bank? ___ Yes ___ No

the conveyance they use to go to the bank? ___ Yes ___ No

the route they take to the bank? ___ Yes ___ No

Do salespersons, truck drivers, or any other employees keep money or other valuables away from premises at night or on weekends? ___ Yes ___ No

If yes, who does the applicant authorize to do so and what is the maximum amount of money exposed?

_____________________________________________________________________________________

Do the applicant’s salespersons, delivery persons, or others collect money off premises? ___ Yes ___ No

If yes, what are the average and the maximum amounts any person may carry?

$___________________Average $________________ Maximum

Does the applicant use an armored car service? ___ Yes ___ No

If yes, describe the armored car service.

_____________________________________________________________________________________

COMPUTER FRAUD

Describe the hardware that is a part of the applicant’s computer system.

___ Main Frame ___ LAN ___ Desktop ___ Laptop ___ Other

Describe other.

_____________________________________________________________________________________

Do the applicant’s employees have access to the computer database from off-site locations? ___ Yes ___ No

If yes, which employees and the databases(s) they are allowed to access?

_____________________________________________________________________________________

Do vendors and customers have access to the applicant’s computer database from off-site locations?___ Yes ___ No

If yes, identify the databases(s) that they are allowed to access?

_____________________________________________________________________________________

Describe all firewall or encryption protection that the applicants uses to prevent security breaches.

_____________________________________________________________________________________

Describe the applicant’s computer security protocol when employees leave the company.

_____________________________________________________________________________________

Does the applicant use the Internet to transfer money, securities or goods? ___ Yes ___ No

If yes, describe the applicant’s security methods it uses to monitor usage and prevent fraud and identity theft.

_____________________________________________________________________________________

If the applicant uses a main frame, answer the following:

Are computer room door entry codes regularly changed? ___ Yes ___ No

Are source documents secured when not in use? ___ Yes ___ No

Are operations/procedure manuals secured when not in use? ___Yes ___No

Do the applicant’s employees sign a nondisclosure statement? ___ Yes ___ No

If the applicant uses an application service provider (ASP) provide a copy of the contract.

Does the applicant use an outside service to maintain the computers? ___ Yes ___ No

If yes, provide a copy of the contract.

Are the applicant’s accounting and ordering computer systems controlled separately from the other computer operations?
___ Yes ___ No

If yes, describe the applicant’s accounting and ordering controls and person(s) who have access to them.

_____________________________________________________________________________________

MONEY ORDERS AND COUNTERFEIT MONEY

How many of the following does the applicant receive in a normal week?

____ Money orders ____ $20 bills ____ $50 bills ____ $100 bills ____ Foreign currency

Does the applicant check all currency $20 and over with a counterfeit checker? ___ Yes ___ No

If yes, describe method the applicant uses to insure that all employees use the checker.

_____________________________________________________________________________________

If the applicant accepts foreign currency, describe the methods it uses to verify authenticity..

_____________________________________________________________________________________

EXTORTION

Does the applicant or any of the applicant’s officers, partners, managers, or members work outside of the United States, Puerto Rico or Canada? ___ Yes ___ No

If yes, list the countries.

_____________________________________________________________________________________

Has the applicant received extortion threats in the past five years? ___ Yes ___ No

If yes, describe the threats in detail. Include dates and resolution.

_____________________________________________________________________________________

Does the applicant have a protocol in place in case there is an extortion attempt? ___ Yes ___ No

If yes, describe the protocol.

_____________________________________________________________________________________

Does the applicant have security procedures in place to protect at-risk individuals? ___ Yes ___ No

If yes, describe the procedure(s).

_____________________________________________________________________________________

Does the applicant or any of the applicant’s officers, partners, managers, or members travel outside of the United States, Puerto Rico, or Canada on a regular basis? ___ Yes ___ No

If yes, list those countries._____________________________________________________________________________________

_____________________________________________________________________________________