Topics covered:
Clients' Property—CR 04 01
Funds Transfer Fraud—CR 04 02
Extortion – Commercial Entities—CR 04 03 or Government Entities—CR 04 04
Inside The Premises – Theft of Other Property—CR 04 05
Inside The Premises – Robbery or Burglary of Other Property—CR 04 06
Inside The Premises – Robbery or Safe Burglary of Money and Securities—CR 04 07
Employee Theft – Name or Position Schedule—CR 04 08
Lessees of Safe Deposit Boxes—CR 04 09
Securities Deposited with Others—CR 04 10
Guests' Property—CR 04 11
Safe Depository—CR 04 12
Destruction of Electronic Data—CR 04 13
Unauthorized Reproduction of Computer Software by Employees—CR 04 14

Clients' Property

CR 04 01 03 00

This endorsement adds the agreement to cover “money,” “securities,” and “other property” that belongs to the named insured's client. Remember that “client” is a defined term that means anyone for whom the named insured performs services under the terms of a written agreement. The client's property is covered for loss from theft by an “identified employee.” Although the policy covers the named insured's property for theft by both identified and unidentified employees, this endorsement limits coverage for clients' property to theft by an identified employee.

As in the policy, the employee committing the theft may be acting alone or “in collusion with others.” While endorsement CR 04 01 requires that the offending employee be identified, it does not require identification of others who may be colluding with the employee.

The endorsement modifies one definition and adds two others. While the policy says that a theft must be to the deprivation of the named insured, this endorsement changes that to the deprivation of the named insured's client. The commercial crime policy covers theft at the insured's premises; endorsement CR 04 01 covers it at the client's premises. The client's premises is the interior of any building where the client conducts its business. Finally, the endorsement repeats the definition of “occurrence” applying it, as well, to this additional insuring agreement.

Endorsement CR 04 01 removes one exclusion. In the crime policy, exclusion D.1.b. eliminates coverage for theft unless the theft is covered under the “employee theft” insuring agreement. The exclusion specifies that the policy does not apply to theft by “employees, managers, directors, trustees, or representatives” except as provided by the agreement A.1. By removing this exclusion, endorsement CR 04 01 covers almost all instances of employee theft of covered property.

The policy spells out four duties of the insured following a loss. The first specifies that the insured must notify the insurer “as soon as possible.” It also requires the insured to notify the police if a violation of the law is suspected. Endorsement CR 04 01 removes the police notification requirement.

The crime policy conditions payment upon the property being owned, leased, or held by the named insured; or upon the insured's legal liability for the property. This endorsement changes “named insured” to named insured's “client.” It also requires that the property be inside the client's premises.

As in the crime policy, the coverage provided by this endorsement is for the benefit of the named insured only.