Crime coverage is an important—and often overlooked—piece of an insured's insurance program. The following checklist is designed to help the agent determine the need for crime coverage and the appropriate coverage to sell.
General Information
Date:
Named Insured:
D/B/A:
Address:
City, State:
Phone:
Named Insured is a: _____Individual _____Partnership _____Corporation
____Limited Liability Corp. _____Joint Venture _____Other
General business operations:
States/territories in which insured has operations:
States/territories in which insured may begin operations within next twelve months:
Loss control contact name/phone:
Insurance Company Information
Carrier name ___________________________________________________
Financial (A.M. Best) rating ____________________________________
Premium ____________________________________
Number of days for notice of cancellation & non-renewal _____________
Has there been continuous coverage with one carrier since crime coverage has been carried? If not, do replacement policies include a superseded suretyship provision? ___________________________________________
Standard or non-admitted market? _________________________________
Coverage territory ____________________________________________
Common Coverage and Limits
Employee Theft, Insuring Agreement One:_________________________________
Forgery or Alteration, Insuring Agreement Two: _____________________________
Theft Of Money & Securities, Inside the Premises, Insuring Agreement Three: _______________________________
Robbery or Safe Burglary of Other Property, Insuring Agreement Four: _______________________________
Outside the Premises, Insuring Agreement Five: _______________________________
Computer Fraud, Insuring Agreement Six: ________________________
Money Orders and Counterfeit Paper Currency, Insuring Agreement Seven _________________________
Loss Control Items (General Crime Exposures)
|
| Yes | No |
| Are standard accounting procedures being used? | ___ | ___ |
| Are audits conducted at least annually by a firm or individual from outside the organization? | ___ | ___ |
| Is inventory included in the audits, if applicable? | ___ | ___ |
| Are all locations audited? | ___ | ___ |
| Is the audit report given directly to the owner or board of directors? | ___ | ___ |
| Are internal audits periodically conducted by an internal audit department? | ___ | ___ |
| What are the time intervals between these audits? | ___ | ___ |
| Are bank accounts reconciled by someone not authorized to deposit or withdraw from them? | ___ | ___ |
| Is counter signature of checks required? | ___ | ___ |
| Are securities subject to joint control of two or more employees? | ___ | ___ |
| Are all employees and officers required to take annual vacations of at least five consecutive business days? | ___ | ___ |
| Are checks stamped “for deposit only” immediately upon receipt? | ___ | ___ |
| How frequently are bank deposits made? Are messengers who make deposits accompanied by guards and do they vary their route to the deposit institution? | ___ | ___ |
| If an armored car service is used, review contract to determine whether appropriate insurance is being provided. | ___ | ___ |
| Are locations equipped with an alarm system? | ___ | ___ |
| - Local gong system? |
| - Central system alarm? |
| - Police connection? |
| - Do guards make rounds with clock key system? |
|
| Yes | No |
| Are background checks conducted on employees who handle money? Volunteers who handle money? | ___ | ___ |
| Have steps been taken to prevent theft of money, securities, or goods through the computer system? Are computer passwords changed frequently? | ___ | ___ |
| Have past claims been reviewed to detect possible patterns of loss? | ___ | ___ |
| Are purchase orders and inventory reconciled by rotating employees? | ___ | ___ |
| If individuals travel outside the U.S., is adequate protection provided for them? | ___ | ___ |
Employee Theft
|
| Yes | No |
| Does limit carried reflect amount of money, securities, and other goods that an employee or group of employees could misappropriate over a period of time? | ___ | ___ |
| Consider whether blanket or scheduled coverage is more suitable. | ___ | ___ |
| Is ERISA bonding coverage needed? In what amount? What are the asset values of applicable ERISA-regulated pension and welfare plans? | ___ | ___ |
| Should excess coverage be provided for any employees who handle large amounts of money? | ___ | ___ |
| Review employee census used to write present coverage. Is it current? Are employees properly classified? | ___ | ___ |
| Consider comparing cost of blanket and scheduled coverage. If scheduled coverage is provided, consider whether named employee or named position coverage is most suitable. | ___ | ___ |
| Are employees of all subsidiary companies included? | ___ | ___ |
| Is coverage needed for agents, auditing, law or other service providers who have access to company money, securities, or goods? If they are providing their own coverage, has it been reviewed to be sure the type and amount(s) of coverage are acceptable? | ___ | ___ |
| Do volunteers have access to company money, securities, or goods? If so, should they be added to the employee dishonesty coverage? | ___ | ___ |
| Should coverage for innocent partners (if entity is a partnership) be included? | ___ | ___ |
| Should leased workers be added for coverage? | ___ | ___ |
| Consider whether there are exposures for the following classes of individuals: |
|
|
| - Spouse/children of managers? (real estate management companies) |
| - Chairman/committee members as employees? (not-for-profit organizations) |
| - Specified directors or trustees as employees? |
| - Designated agents as employees? |
| - Specified non-compensated officers as employees? |
| Is faithful performance of duty required by the organization's bylaws? If so, is faithful performance coverage in place? (usually public entities) | ___ | ___ |
| Is coverage included for unknown prior acts? | ___ | ___ |
Forgery or Alteration
|
| Yes | No |
| Review limit for adequacy. (Forgery & alteration applies to the insured's documents (checks, etc.) being stolen, forged or altered, and negotiated.) | ___ | ___ |
| Has credit and debit card forgery been endorsed if needed? If so, is limit adequate? | ___ | ___ |
Theft, Disappearance, and Destruction Of Money & Securities
|
| Yes | No |
| Review coverage for money and securities for adequacy. Should coverage be on a blanket or scheduled basis? | ___ | ___ |
| Do the limits of coverage reflect the maximum amount of money or securities subject to loss at any one time? Review loss control items above to assist in discussing limits. | ___ | ___ |
| Should higher limits be arranged for seasonal peak business periods, when additional money is on hand? | ___ | ___ |
| In reviewing limits, have you considered the amount of money, checks for deposit, payroll checks, accounts payable checks, overnight funds, and securities that are either on premises or in the custody of messengers at any one time? | ___ | ___ |
| Consider having optional deductible amounts quoted and compare premiums? | ___ | ___ |
Robbery and Safe Burglary of Other Property
|
| Yes | No |
| Review commercial property form to determine whether theft is a covered peril. If theft is excluded, should coverage be arranged through the property policy or a separate crime policy? | ___ | ___ |
| Is limit adequate for the exposures? | ___ | ___ |
| Does insured have property in display windows? Is such property excluded or limited? Is such property removed from the windows in the evening? | ___ | ___ |
| Is adequate coverage in place for the insured's property away from premises? Review mail and transit exposures. | ___ | ___ |
Outside the Premises
|
| Yes | No |
| Review commercial property form to determine whether theft is a covered peril. If theft is excluded, should coverage be arranged for burglary outside of the premises of goods other than money and securities? | ___ | ___ |
| Is limit adequate for the exposures? | ___ | ___ |
Other Exposure and Coverage Issues
Computer Exposures
____ 1. Is insured vulnerable to computer fraud? Is coverage in place for the exposure?
____ 2. Could money, securities, or other property be stolen or impaired through computer fraud?
____ 3. Are other types of valuable property—such as trade secrets, business style, or customer lists—subject to loss through computer fraud?
____ 4. Review loss control items listed previously for possible safeguarding activities.
Liability for Property of Others
____ 1. Hotels, bed & breakfast locations, motels: should liability for guests' property coverage be added?
____ 2. Are loss control safeguards, such as safe deposit boxes or central safe, available for guests' use?
____ 3. Furriers and jewelers: is furriers or jewelers block coverage needed and adequate?
____ 4. Are there any precious metals or stones, bullion, or other high-value items that need special coverage?
Extortion, Kidnap, Ransom
Note: This coverage is not part of the standard crime program, but is available in the surplus lines market.
____ 1. Review need for kidnap, ransom, or property damage extortion coverage with insured. Is coverage in place and is limit adequate?
____ 2. Does coverage include access to security professionals who are available to assist if a demand is received?
____ 3. Are response procedures in place if a demand is received?
____ 4. Do insureds and their employees travel outside the U.S., where kidnap and ransom exposures may be increased?
____ 5. Does coverage extend to employees, family members, and guests?
____ 6. Does property damage extortion coverage extend to the cost of recalling products that may or have been tampered with?
____ 7. Is a procedure in place for evacuation of premises when a demand or threat is received, such as a bomb threat?
____ 8. Remind insured to keep the existence of kidnap and ransom insurance coverage completely confidential. Only those who must know should be made aware of the coverage.
____ 1. Review insurance policies to determine whether they contain warranties or conditions which, if not complied with, could result in coverage being voided. Is the insured aware of these requirements?
____ 2. Are the insured and employees aware of the need to notify police of crime losses?
____ 3. Is the insured aware that coverage under the employee dishonesty policy may be canceled for any individual once the insured becomes aware that the employee has committed a “dishonest act”?
____ 1. Quote optional deductible amounts on all coverages to determine most economically feasible plan.