1. Forms
2. CR
3. CR-00-28

What the Form Is

The CR 00 28, titled Commercial Fidelity and Forgery Policy (Discovery Form), is an Insurance Services Office (ISO) standalone insurance policy designed to protect businesses against financial losses resulting from employee dishonesty and forgery. It is a 'discovery' form, which means coverage is triggered when a loss is discovered during the policy period or within a defined extended discovery period (typically 60 days, or 1 year for employee benefit plans), irrespective of when the criminal act actually took place. This form is a more restricted version of broader commercial crime policies (like the CR 00 22 Commercial Crime Policy) as it specifically provides only two core insuring agreements: Fidelity (which includes what was formerly termed Employee Theft) and Forgery or Alteration. The 2022 edition of this form saw a significant retitling and restructuring of the 'Employee Theft' insuring agreement to 'Fidelity,' which now breaks down into three separate coverages: Employee Theft, Employee Retirement Income Security Act of 1974 (ERISA) plan official dishonesty, and Employee Theft of Clients' Property (previously available by endorsement).

Classes of Business It Applies To

This policy is suitable for a wide range of commercial entities that have a primary exposure to losses from employee dishonesty or forgery and may not need or want the broader (and potentially more expensive) coverage of a comprehensive crime policy. Examples include:

• Small to medium-sized businesses concerned about theft of money, securities, or other property by employees.
• Companies that handle checks, drafts, and other financial instruments and are vulnerable to forgery or alteration. For instance, a retail store concerned about cash register theft by an employee or a professional services firm worried about an employee forging company checks.
• Organizations that manage Employee Benefit Plans subject to ERISA can also obtain coverage for those plans if they are specifically listed in the policy.

Special Considerations

• Discovery vs. Loss Sustained: It is crucial to understand that CR 00 28 is a 'discovery' form. The alternative is a 'loss sustained' form (CR 00 29), which covers losses that both occur and are discovered during the policy period (or occur during the policy period and are discovered within a year of its end). The discovery basis can offer broader coverage for past acts, provided the discovery happens during the policy term.
• Monoline Policy: This is typically a standalone policy and not automatically part of a commercial package policy.
• ERISA Coverage: Following the 2022 revisions, coverage for ERISA plan official dishonesty must be specifically elected and a limit shown in the declarations; it is no longer automatically included within the general employee theft coverage.
• Limit Per Occurrence: The limit of insurance for employee theft generally applies per 'occurrence' (a single act or a series of related acts), not per employee involved, unless the policy is specifically endorsed to provide per-employee coverage.
• Prior Editions: Be aware that prior editions of this form (e.g., CR 00 28 11 15) existed with the title "Employee Theft and Forgery Policy". The change to "Commercial Fidelity and Forgery Policy" and the restructuring of the fidelity coverage are key updates in the 06 22 edition.

Key Information for Agents and Underwriters

• Risk Assessment: Underwriters should carefully evaluate the applicant's internal financial controls, employee screening procedures, segregation of duties, and any prior history of employee dishonesty or forgery losses.
• Client Needs Analysis: Agents should help clients determine if this more limited form is adequate for their needs or if a broader commercial crime policy (like CR 00 20 or CR 00 22) would be more appropriate. The distinction between 'discovery' and 'loss sustained' triggers must be clearly explained.
• Declarations are Key: The specific coverages, limits of insurance, and deductibles will be detailed in the policy declarations, likely using a form like CR DS 05 (Employee Theft and Forgery Policy Declarations). Coverage is only activated for an insuring agreement if a limit is shown on the declarations page.
• Endorsements: While this policy offers two primary insuring agreements, other crime coverages (like CR 04 01 Clients' Property, though aspects of this are now incorporated into the 2022 Fidelity insuring agreement) can sometimes be added by endorsement if needed, or a broader crime policy might be considered.
• 2022 Edition Changes: Professionals must be familiar with the significant changes introduced in the 06 22 edition, particularly the renaming to 'Fidelity,' the three sub-coverages under Fidelity, and the separate election required for ERISA plan coverage. This ensures clients have the intended coverage, especially for ERISA compliance.