1. Forms
2. CR
3. CR-00-06

What the Form Is

The CR 00 06 Premises Burglary Coverage Form, often referred to as Form E, is a commercial crime insurance form designed to protect businesses against financial loss due to burglary. It specifically covers loss of or damage to tangible property (other than money and securities) located inside the insured's premises resulting from an actual or attempted burglary. The form also extends coverage to loss of such property from an actual or attempted robbery of a watchperson while on duty within the premises. Furthermore, it covers damage to the insured premises, including damage to a locked safe or vault, that occurs during the course of an actual or attempted burglary or robbery of a watchperson.

Classes of Business It Applies To

This coverage is suitable for a wide range of commercial enterprises that possess valuable property on their premises which could be a target for burglars. Examples include:

• Retail stores with merchandise
• Offices with equipment and valuable papers (though manuscripts and records have broadened coverage features as of the 08/13 edition)
• Wholesalers and distributors holding inventory
• Manufacturing facilities with raw materials, tools, and finished goods
• Service businesses with specialized equipment

It is often included as part of broader crime coverage packages, such as the Storekeepers Burglary and Robbery Policy or the Storekeepers Broad Form.

Special Considerations

• Excluded Property: It's crucial to note that this form explicitly excludes coverage for loss of money and securities; separate coverage forms (like CR 00 04) are needed for those exposures. It also excludes motor vehicles, trailers, semitrailers, and their attached equipment and accessories.
• Definition of Burglary: Policies typically define "burglary" as the unlawful taking of property from within the premises, evidenced by visible signs of forcible entry into or exit from the premises. This definition is a key element in claim situations.
• Robbery of a Watchperson: The inclusion of coverage for robbery of a watchperson is a specific and valuable feature for businesses employing security personnel.
• Broadened Coverage (08/13 Edition): The 08/13 edition of ISO crime forms introduced enhancements to Form E, such as removing the limitation that robbery had to occur "while the premises are not open for business." It also established a $5,000 special limit for items of extraordinary value like precious metals and stones (with options for higher limits via endorsement) and increased the limit for jewelry from $50 to $5,000.
• Damage to Premises: Coverage for damage to the premises itself (including safes and vaults) during a covered event is an important benefit, as repair costs can be significant.

Key Information for Agents and Underwriters

• Risk Assessment: Underwriters should carefully assess the insured's exposure to burglary. This includes evaluating the type and value of property on premises, the physical security measures in place (e.g., alarms, locks, safes, surveillance), the nature of the business operations, the surrounding area's crime rate, and any prior loss history.
• Protective Safeguards: The presence and quality of protective safeguards can significantly impact the risk profile and may be a factor in pricing or eligibility. Discounts may apply for approved alarm systems, high-quality safes, and the employment of watchpersons.
• Coverage Gaps and Overlaps: Agents should ensure clients understand the distinction between burglary and other types of theft. It's also important to review if there's potential overlap with other coverages, such as a special form commercial property policy, which might also cover some damage to the premises or theft of business personal property (though often with different terms and conditions). The necessity of CR 00 06 should be evaluated if the insured has special form contents coverage with adequate limits.
• Limits and Deductibles: Appropriate limits of insurance should be selected based on the maximum foreseeable loss. The special $5,000 limit for specified valuable property (e.g., precious metals, stones) should be noted, and higher limits should be considered via endorsement if the exposure warrants. Deductibles will also apply and should be clearly understood by the insured.
• Endorsements: Various endorsements (e.g., CR 15 09 Protection Devices or Services Provision, CR 15 10 Forceable Entry Into Premises Required) can modify the coverage provided by CR 00 06, and their applicability should be considered.