1. Forms
2. CR
3. CR-04-08

What the Form Is

The CR 04 08 Employee Theft – Name or Position Schedule endorsement is an optional endorsement used with Commercial Crime and Government Crime policies. Its primary function is to modify the standard Employee Theft insuring agreement by limiting or specifying coverage for losses caused by dishonest acts of employees. Instead of providing blanket coverage for all employees, this endorsement allows the insured to schedule coverage for specific, named individuals or for anyone occupying a designated position within the company. It can be used in two main ways: either to provide coverage only for the employees or positions listed in the schedule, thereby replacing broader employee theft coverage, or to provide excess coverage for scheduled employees/positions above a primary layer of blanket employee theft insurance.

Classes of Business It Applies To

This endorsement is versatile and can be applied to a wide range of commercial and governmental entities that have concerns about employee theft, particularly for employees in high-risk roles or with access to significant assets. Examples include:

• Businesses where specific employees handle large sums of money, securities, or valuable property (e.g., CFOs, controllers, treasurers, payroll managers).
• Organizations that want to provide higher limits of coverage for key personnel while maintaining a lower blanket limit for other employees. For instance, a company might have a $50,000 blanket employee theft limit but use CR 04 08 to schedule $500,000 in coverage for its Chief Financial Officer.
• Companies that prefer to name specific individuals who are covered for employee theft, perhaps due to underwriting requirements or a desire for more granular control over this exposure.
• Governmental entities that need to specify coverage for particular positions due to regulatory or internal control reasons.

Special Considerations

• Accuracy is Crucial: The schedule is the core of this endorsement. It's vital that the names of individuals or the titles of positions are listed accurately. A claim could be denied if the wrong name is entered or if the position title is incorrect or ambiguous.
• Identification Requirement: Coverage under this endorsement typically applies only when the specific employee causing the loss can be identified as one of the named individuals or as someone occupying a scheduled position. This can be more restrictive than standard blanket employee theft coverage, which may respond even if the specific dishonest employee cannot be identified (though proving employee dishonesty is still required).
• Limit Application: The limit of insurance shown in the schedule applies per the named employee or position. It's important to understand how the limit applies in cases of collusion or multiple thefts by the same scheduled employee/position. The policy will specify if the limit is per employee, per position, or per occurrence, and if an aggregate limit applies.
• Discovery Period: The underlying crime policy's conditions regarding the discovery period for losses will still apply.

Key Information for Agents and Underwriters

• Risk Assessment: When considering this endorsement, underwriters will carefully assess the individuals or positions being scheduled. Factors include their level of access to company assets, internal controls surrounding their roles, and any prior history of dishonesty.
• Pricing: Pricing for this endorsement will depend on the limits requested for each scheduled employee or position, the nature of their duties, and the overall risk profile of the insured. Providing higher limits for specific individuals or positions will naturally increase the premium.
• Coverage Gaps: Agents should ensure clients understand the implications of using this endorsement, particularly if it's used to replace blanket coverage. If an employee not listed on the schedule commits theft, there would be no coverage under this endorsement. If used for excess coverage, the underlying blanket coverage terms and conditions remain critical.
• Alternative to Blanket Coverage: For some smaller businesses with only a few key employees handling sensitive assets, this endorsement might be a more cost-effective way to secure employee theft coverage compared to a broad blanket policy, though it significantly restricts coverage.
• Underwriting Stringency: Underwriters may be more willing to provide higher limits on a scheduled basis for specific, well-vetted individuals or positions than they would for a high blanket limit applying to all employees.