1. Forms
2. CR
3. CR-00-02

What the Form Is

The CR 00 02, often referred to as Employee Dishonesty - Scheduled Employees or Positions, is a commercial crime insurance coverage form. Its primary purpose is to indemnify an employer for financial losses arising from dishonest acts committed by employees who are specifically identified (scheduled) in the policy, either by name or by position held. This form is a type of fidelity coverage and falls under the jurisdiction of the Surety Association of America. Unlike blanket coverage (such as that provided by form CR 00 01), which covers all employees, this form requires the insured to list the particular employees or positions to be covered. Coverage applies to loss of money, securities, and property other than money and securities.

Classes of Business It Applies To

This form is suitable for businesses that wish to insure against employee theft but want to limit the coverage (and potentially the premium) to specific, often higher-risk, roles or named individuals. It can be used across various industries.

• Example 1: A small retail business might schedule coverage only for the store manager and the head cashier, who have direct access to cash and inventory control.
• Example 2: A non-profit organization might schedule its Treasurer and Executive Director, who have authority over financial accounts.
• Example 3: A company with a large workforce might only schedule employees in its accounting department or those with significant financial responsibilities, rather than covering every employee.

Special Considerations

• Identification Required: A critical aspect of this form is that the specific dishonest employee(s) who caused the loss must be identified for coverage to apply. This contrasts with blanket forms where coverage may apply even if the specific culprit isn't identified, as long as the loss is clearly due to employee dishonesty.
• Scheduled Basis: Coverage only applies to those employees or positions explicitly listed in the schedule of the policy. If an unscheduled employee commits a dishonest act, there would be no coverage under this form for that loss.
• Collusion: If two or more scheduled employees are involved in collusion, each employee's act may be considered a separate occurrence, subject to the per-employee limit and deductible.
• No Temporary Overseas Coverage: This policy form typically does not provide temporary coverage for employees while they are overseas.
• Discovery Period: The form will specify a period after policy expiration during which losses discovered must have occurred during the policy period to be covered.

Key Information for Agents and Underwriters

• Risk Assessment: Underwriting focuses heavily on the specific individuals or positions scheduled. Factors include the level of access to company assets, internal controls and oversight for those positions, segregation of duties, and any prior history of dishonesty. Background checks for scheduled individuals may be pertinent.
• Pricing: Premiums are determined by the limit of insurance selected for each scheduled employee or position, the number of scheduled employees/positions, the nature of their duties, and the overall risk profile of the insured's operations and internal controls.
• Coverage Gaps: Agents should counsel clients on the potential gap in coverage: dishonest acts by non-scheduled employees are not covered. If broader protection is needed, Employee Dishonesty Blanket Coverage (CR 00 01) might be more appropriate.
• Limits and Deductibles: The policy will have a limit of insurance applicable per scheduled employee or position, and a deductible will apply to each loss.
• Comparison to Blanket Coverage: This form is generally less expensive than blanket employee dishonesty coverage because the exposure is limited to named individuals or positions. It's crucial to ensure the client understands this limitation.