Q

We insure a moving and storage company that wants to bond its employees for theft of merchandise from clients. I know there must be a way to provide this coverage but cannot find out how to do it. Is coverage available?

Illinois Subscriber

A

Endorsement CR 04 01 03 00 clients' property may be attached to the ISO commercial crime policy for this coverage. This endorsement adds coverage for “money,” “securities,” and “other property” that belong to the named insured's client. “Client” is defined as anyone for whom the named insured performs services under terms of a written agreement. The loss must be caused by an identified employee in order for the coverage to be triggered.

Keep in mind that this endorsement provides coverage only for property at the client's location. It fills the gap created by Condition n. of the commercial crime policy. Condition n. states that coverage applies to property that is owned or leased by the named insured, held by the named insured for others, or for which the named insured is legally liable—except for property that is located inside the premises of a client of the named insured. This condition precludes coverage for employee theft of client property that is located in the client's premises.

Endorsement CR 04 01 fills that gap.