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.
Endorsements That Change the Definition of Employee
This first section contains fifteen endorsements.
CR 25 01 03 00: provides a schedule to list any person or class as excluded from the definition of employee.
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 duties—even 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 07 03 00: extends coverage to directors or trustees on certain committees. It has a schedule to name the covered person or persons. For the coverage to apply, the director or trustee must perform “specific directorial acts” as opposed to “general directorial acts.”
CR 25 08 03 00: provides a schedule to list non-compensated officers and include them as employees.
CR 25 09 03 00: adds volunteer workers as employees. However, it excludes “fund solicitors” while they are performing duties usual to an employee.
CR 25 10 03 00: adds “fund solicitors” as employees.
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 12 03 00: adds designated treasurers or tax collectors as employees under the government crime form. It also deletes the exclusion for treasurers and tax collectors.
CR 25 13 03 00: adds students as employees under the government crime form. The student must be enrolled in a school under the jurisdiction of the named insured. It covers the student while he or she is handling money or property in connection with “sanctioned” student activities.
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 15 03 00: is the last endorsement in this series. It amends the definition of employee to comply with the “Labor – Management Reporting and Disclosure Act of 1959.”
Endorsements That Add Coverage for Certain Activities
This second series contains seven endorsements.
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 19 03 00: works the same as CR 25 18, except for government entities.
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.
CR 25 22 03 00: allows the insured to include the “personal accounts” of named individuals. It has a schedule for the names and the amount of insurance to apply to each person's accounts.
Endorsements that Remove Coverage for Certain Activities
This category contains three endorsements.
CR 25 23 03 00: excludes losses that result from insurance operations. There is no coverage for liability arising out of the insured's issuance of insurance, indemnity, or surety contracts.
CR 25 24 03 00: excludes “high-grading loss.” It eliminates from covered property precious metals and stones that were not received by an authorized employee and placed in a safe.
CR 25 25 03 00: excludes coverage for “unauthorized advances” made by an insured's employee for “delinquent dues or assessments.” It also requires the insured to consent to an audit of his or her books at least once a year.
Endorsements That Add Excess Limits
This category contains five endorsements.
CR 25 31 03 00: allows the insured to add blanket excess coverage for specified “joint insureds.” The policy says, under the “joint insured” condition, that an employee of any insured is an employee of every insured.
CR 25 32 03 00: provides excess coverage over a statutory bond for employees or treasurers/tax collectors. It removes the exclusions in the crime policies that apply to these employees.
CR 25 33 03 00: provides excess “per loss” insurance under the governmental crime form.
CR 25 34 03 00: allows an insured to add excess limits of insurance for scheduled employees or positions.
CR 25 35 03 00: allows an insured to add excess limits of insurance for scheduled employees or positions for the peril of employee theft only.