Summary: The current commercial crime discovery form, CR 00 20 11 15, and loss sustained form CR 00 21 11 15, are revisions of earlier discovery and loss sustained forms. The revisions include simple wording changes for clarification and a new exclusion. This article discusses the revised forms.

Topics covered:

Introduction

Insuring_Agreement_1—Employee Theft

Insuring Agreement 2—Forgery or Alteration

Insuring Agreement 3—Inside the Premises-Theft of Money and Securities

Insuring Agreement 4—Inside the Premises-Robbery or Safe Burglary of Other Property

Insuring Agreement 5—Outside the Premises

Insuring Agreement 6—Computer and Funds Transfer Fraud

Insuring Agreement 7—Money Orders and Counterfeit Money

Limit of Insurance/Deductibles

Exclusions

Conditions

Language Specific to Loss Sustained Form Only

Definitions

Introduction

 These policies contain seven insuring agreements, and coverage is provided under these agreements when a limit of insurance is listed in the Declarations. In the discovery form, the loss must arise from an occurrence and be discovered by the named insured during the policy period or during the extended period to discover loss. The extended period of loss is described in the conditions section E.1.g. The loss sustained form is worded differently because it also applies to loss that the named insured sustains resulting directly from an occurrence taking place during the policy period, except as provided in conditions E.1.k. or E.1.l. (These conditions will be reviewed in detail later in this discussion).

 Insuring Agreement 1—Employee Theft

 1.Employee Theft

We will pay for loss of or damage to "money", "securities" and "other property" resulting directly from "theft" committed by an "employee", whether identified or not, acting alone or in collusion with other persons.

For the purposes of this Insuring Agreement, "theft" shall also include forgery.

 Analysis

 The key points in this insuring agreement are the defined terms (especially "employee"), which will be discussed later in this article. This insuring agreement provides coverage in case an employee takes money, securities, or other property unlawfully from the insured, thereby depriving the insured of that item. Note the inclusion of forgery in the definition of "theft" for this insuring agreement. Loss or damage to money, securities and other property that results from forgery is also covered in this insuring agreement.

 Insuring Agreement 2—Forgery Or Alteration

 a.We will pay for loss resulting directly from "forgery" or alteration of checks, drafts, promissory notes, or similar written promises, orders or directions to pay a sum certain in "money" that are: