1. Forms
2. CR
3. CR-04-07

What the form is

The CR 04 07, titled "Inside the Premises – Robbery or Safe Burglary of Money and Securities," is an endorsement to Commercial Crime or Government Crime insurance policies. Its purpose is to provide specific coverage for the loss of money and securities due to two named perils: robbery of a custodian on the premises and burglary of a safe or vault on the premises or at a financial institution. This endorsement also typically covers damage to the insured's premises (if owned by the insured or if the insured is legally liable for damage) that occurs during an actual or attempted robbery or safe burglary covered by the endorsement. It is often used when the broader coverage for theft of money and securities (such as that provided by Insuring Agreement 3 of a standard crime policy) is either not desired by the insured or not offered by the insurer.

Classes of business it applies to

This endorsement is suitable for a wide range of businesses that handle cash or other securities on their premises and face the risk of robbery or safe burglary. Examples include:

• Retail Stores: Businesses that keep cash in registers during the day and in a safe overnight. For example, if a grocery store's safe is broken into and cash is stolen, this endorsement would apply.
• Offices: Professional offices or service businesses that may keep petty cash or receive payments in cash or checks.
• Restaurants and Hospitality: Establishments that have significant cash transactions and store money in safes.
• Any business with a safe: Companies that utilize safes or vaults to store money and securities. If an armed robber forces an employee (a "custodian") to hand over money from a cash drawer, this would be a covered robbery.

Special considerations

• Definition of "Custodian": It's important to note that "custodian" is a specifically defined term in the policy, typically meaning the named insured, a partner, a member, or an employee who has care and custody of insured property inside the premises. It usually excludes individuals acting as janitors or watchpersons.
• Named Perils: Coverage is limited to robbery and safe burglary. Other types of theft or mysterious disappearance of money and securities are not covered by this specific endorsement.
• Premises Damage: Coverage for damage to the premises is often contingent on the insured owning the premises or being legally liable for the damage.
• Exclusions: The endorsement is subject to the main policy's exclusions, but may also contain its own specific exclusions. For instance, loss from fire is generally excluded, except for direct fire loss to money and securities within a safe or vault that was damaged by the fire. Vandalism or malicious mischief damage to the premises or other property is also typically not covered under this endorsement.
• Comparison to Broader Coverage: This endorsement provides narrower coverage than an "all-risk" theft of money and securities form. It's crucial to assess if this limited scope is adequate for the insured's needs.

Key information for agents and underwriters

• Risk Assessment: Underwriters should carefully evaluate the insured's physical security measures, such as the type and rating of safes or vaults, alarm systems, surveillance cameras, and cash handling procedures. The neighborhood and loss history are also important factors.
• Limits and Deductibles: The limit of insurance and applicable deductible for this coverage must be clearly stated in the policy declarations.
• Understanding Client Needs: Agents should ensure clients understand the specific triggers for coverage (robbery of a custodian, safe burglary) and the definition of key terms like "custodian." If a client has broader exposures, a more comprehensive crime coverage form should be recommended.
• Policy Language: Always refer to the specific edition date of the endorsement (e.g., 08 13, 06 22) as terms and conditions can change between editions. For example, the term "banking premises" was updated to "financial institution premises" in later editions.
• Pricing: The premium for this endorsement will be influenced by the limits of liability, the deductible, the nature of the insured's business, the amount of money and securities exposed, and the quality of risk management and security practices in place.