1. Forms
2. CR
3. CR-00-01

What the Form Is

The CR 00 01 Employee Dishonesty Coverage Form (often referred to as Form A) was an Insurance Services Office (ISO) commercial crime insurance form that provided coverage to employers for losses resulting from dishonest acts committed by their employees. This form offered 'blanket' coverage, meaning all employees were generally covered without needing to be individually named or scheduled, although a separate form (CR 00 02) was available for scheduled employees. Essentially, CR 00 01 functioned as a fidelity bond, reimbursing the insured business for direct financial loss of money, securities, or other property due to employee theft. It was a foundational part of the ISO Commercial Crime Program before its major revision effective around July 1, 2000.

Classes of Business It Applies To

This form was broadly applicable to many types of commercial enterprises that faced exposure to loss from employee dishonesty. Examples include:

• Retail stores (theft of cash or merchandise by clerks)
• Manufacturing companies (theft of raw materials or finished goods by plant workers)
• Service businesses (misappropriation of funds by office staff)

However, certain classes of business were typically excluded or had specialized forms, such as financial institutions (banks, credit unions, stockbrokers) and governmental entities.

Special Considerations

• Older Form: CR 00 01 is an older generation form and has largely been superseded by newer ISO crime forms, such as the CR 00 21 (Commercial Crime Coverage Form - Loss Sustained) and CR 00 22 (Commercial Crime Policy - Discovery Form). These newer forms often use the term "Employee Theft" instead of "Employee Dishonesty," though the core coverage intent is similar.
• Blanket vs. Scheduled: CR 00 01 provided blanket coverage. If an insured wished to cover only specific, named employees or positions, Form CR 00 02 would have been used.
• Discovery Period: As with all crime insurance, the provisions regarding when a loss must be discovered and reported were critical.
• "Manifest Intent": Older employee dishonesty forms sometimes included a requirement that the employee acted with "manifest intent" to cause the insured to sustain loss and to obtain financial benefit for the employee or another person. This concept has evolved in newer forms.

Key Information for Agents and Underwriters

• Historical Context: Recognizing CR 00 01 as a pre-2000 crime form is important for understanding its scope and limitations if encountered in historical policy reviews or discussions of prior coverage.
• Risk Assessment: Underwriting for employee dishonesty coverage, whether under CR 00 01 or modern forms, focuses on the applicant's internal controls (e.g., separation of duties, regular audits, inventory management), employee screening practices, management oversight, and prior loss experience.
• Coverage Gaps: On its own, CR 00 01 only addressed employee dishonesty. Businesses would often need additional crime coverage parts or endorsements for other exposures, such as forgery by third parties (covered under a form like CR 00 03), theft of money and securities from the premises or by messengers (CR 00 04), or theft of client property by employees (which might require an endorsement like CR 04 01).
• Transition to Newer Forms: When ISO updated its crime program, agents and underwriters had to manage the transition of insureds from older forms like CR 00 01 to the newer suite of crime coverages, ensuring appropriate continuity or understanding changes in coverage terms.