1. Forms
2. CR
3. CR-15-01

What the form is

The CR 15 01 Exclude Specific Property endorsement is an Insurance Services Office (ISO) form used in Commercial Crime insurance policies. Its primary function is to modify the crime coverage by specifically excluding certain types or items of property from coverage that would otherwise be insured under the policy. This allows for customization of the policy based on the insured's specific risk exposures and insurance needs.

Classes of business it applies to

This endorsement can be used for a wide range of businesses that carry Commercial Crime insurance. It is particularly relevant for businesses that may have certain property on their premises or in their care that they either do not want to insure against crime perils (perhaps due to its nature, value, or other insurance coverage) or that the insurer is unwilling to cover under standard terms. Examples include:

• Businesses holding property of others for which they are not responsible for loss by crime.
• Organizations with specific high-value items that are insured under a separate policy (e.g., fine arts, valuable papers).
• Operations where certain types of property are particularly susceptible to theft but the insured opts to self-insure that specific risk. For instance, a contractor might choose to exclude small, easily pilfered tools if they have a robust replacement system.

Special considerations

Important considerations when using the CR 15 01 endorsement include:

• Clarity of Description: The property to be excluded must be described with sufficient clarity and specificity in the endorsement schedule to avoid ambiguity in the event of a claim. Vague descriptions can lead to coverage disputes.
• Impact on Premium: Excluding property typically results in a reduction in premium, as the insurer's exposure is lessened. The rating instructions often specify not to charge for the excluded property.
• Coverage Gaps: Care must be taken to ensure that excluding property does not inadvertently create significant uninsured exposures for the business, unless this is a deliberate risk management decision.
• Alternative Coverage: If valuable property is excluded, the insured should consider if alternative coverage (e.g., inland marine, separate crime policy for specific items) is necessary.

Key information for agents and underwriters

For Agents:

• Thoroughly discuss with the insured the reasons for excluding specific property and the potential consequences.
• Ensure the description of excluded property on the endorsement is precise and accurately reflects the insured's intent.
• Advise the insured on any potential coverage gaps created and discuss alternative solutions if needed.
• Document the discussion and the insured's decision to exclude the property.

For Underwriters:

• Assess the nature of the property being excluded and its impact on the overall risk profile of the insured.
• Ensure the premium is adjusted appropriately to reflect the reduced exposure.
• Verify that the wording used to describe the excluded property is clear and unambiguous to prevent future claim disputes.
• Consider if the exclusion of certain property makes the remaining risk more or less desirable. For example, if an insured wants to exclude cash from a premises burglary policy, it significantly changes the nature of the risk.