Summary: Category 25 of ISO crime forms consists of forty various endorsements that change certain crime policy provisions. Among them are provisions that define employees; that add coverage for certain activities; that remove coverage for certain activities; and that add excess limits.
Topics covered:
Endorsements that change the definition of employee
Endorsements that add coverage for certain activities
Endorsements that remove coverage for certain activities
Endorsements that add excess limits
Endorsements That Change the Definition of Employee
This first section contains fifteen endorsements.
CR 25 02 03 00 : adds designated agents of the insured as employees. It also allows the insured to choose a limit of insurance that applies to each agent. This limit of insurance is included within the limit shown on the declarations page. These agents are covered only for theft and not for faithful performance of their dutieseven if the policy contains an endorsement providing “faithful performance” coverage for other employees.
CR 25 03 03 00 : provides a schedule to add, as employees, designated persons who are partners in an insured partnership. The basic crime policy excludes theft by any of the insured's partners. This endorsement adds theft coverage for designated partners. When calculating the amount of loss payable under this endorsement, the insurer deducts the following from the total reported loss:
1. Amounts the named insured owes to the partner.
2. The value of the partner's interest in the partnership.
3. The deductible.
CR 25 04 03 00 : provides a schedule to add, as employees, designated persons who are members of an insured limited liability company (LLC). As with partners, the acts of members are also not covered by the basic crime policy. Like the CR 25 03, this endorsement subtracts the same three items from the reported loss. However, this endorsement uses the value of the member's membership interest in the LLC, rather than a partner's interest in the partnership.
CR 25 05 03 00 : adds leased workers as employees. It provides a schedule to list the various leasing firms used by the insured. Then, any employee leased from that firm is an insured. However, it exempts leased employees substituting for a permanent employee on leave or leased employees hired to meet “seasonal or short-term workload conditions.”
CR 25 06 03 00 : adds the chairperson and other members of designated committees as employees. Many businesses have committees that are chaired by non-employees, or that have non-employees as members. This endorsement extends coverage to these individuals when acting in their capacity as either a committee chairperson or member.
CR 25 11 03 00 : adds the spouse and family members of certain employees as employees. Sometimes a building manager, superintendent, or janitor will live in the building where they work. They are already covered as employees of the named insured. This endorsement adds their spouse and children to the definition of employee. Each family is then one insured.
CR 25 14 03 00 : adds certain officers and employees of a Federal Reserve Bank as employees under the commercial crime form. A business may operate an electronic fund transfer system. With such an operation an employee or officer of a Federal Reserve Bank might have custody of the insured's covered property. This endorsement adds these Federal Reserve employees as insureds in that case.
CR 25 16 03 00 : adds coverage for trading. It provides a place to show a limit of liability for trading coverage. For example: a business might have its treasurer or controller invest any excess funds. The commercial crime policy excludes any losses caused by employee theft in connection with such trading activities.
When this endorsement is added, it amends that exclusion so that trading is covered up to the limit of liability on the endorsement. That limit is included in the overall limit shown on the declarations.
CR 25 17 03 00 : adds coverage for warehouse receipts, also excluded by the commercial crime policy. The endorsement provides a place for a limit of liability for this coverage. When used, this endorsement provides coverage for loss that results from “fraudulent or dishonest signing, issuing, canceling or failing to cancel, a warehouse receipt or any papers connected with it.”
CR 25 18 03 00 : adds coverage for faithful performance by an employee of his or her duties. The endorsement adds to the employee theft insuring agreement that the policy will pay for loss of covered property that occurs because of an employee's failure to perform his or her duties. This endorsement is used to modify the commercial crime policy and the employee theft policy.
CR 25 20 03 00 : adds coverage for credit/debit card forgery. It allows the insured to add or include such cards in the coverage or to limit the coverage to such cards. It also provides for a sub-limit for such forgery. It also adds an exclusion applicable to this coverage: the policy does not apply if the insured does not comply with the provisions and terms of the card.
CR 25 21 03 00 : adds coverage for warehouse receipts and withdrawal orders. As with the CR 25 20, the insured may include these items in the coverage or limit the coverage to them; and a sub-limit of coverage is provided. Although the crime policy excludes warehouse receipts, the term is not defined in the policy. This endorsement says that a “warehouse receipt” shows that the insured received certain goods or merchandise. A “withdrawal order” is sent to the insured by the owner of a warehouse receipt that requests withdrawal of the owner's goods.