1. Forms
2. CR
3. CR-15-09

What the form is

The CR 15 09 Protection Devices or Services Provision is an endorsement to a commercial crime insurance policy. Its primary purpose is to stipulate that the insured must maintain certain agreed-upon security measures or services as a condition of coverage or to receive a favorable premium. These protective measures are typically specified within the endorsement or the policy declarations. If the insured fails to keep these devices or services in good working order and a loss occurs that could have been prevented or mitigated by them, coverage for that loss may be reduced or denied.

Classes of business it applies to

This endorsement is relevant for a wide range of businesses that have exposures to crime-related losses, particularly those involving theft, robbery, or burglary. Examples include:

• Retail Stores: Businesses handling cash and valuable merchandise, which may require alarm systems, safes, or surveillance cameras.
• Jewelry Stores: High-value inventory necessitates robust security like high-grade safes, vault protection, and alarm systems connected to monitoring stations.
• Businesses with significant cash on premises: Such as check-cashing services, money transfer businesses, or any operation with large daily cash transactions.
• Warehouses and Storage Facilities: May require perimeter security, access control, and alarm systems to protect stored goods.
• Businesses employing messengers: If messengers transport money, securities, or other valuable property, the endorsement might specify requirements for messenger protection like armed guards or specialized satchels.

Special considerations

• Specificity is Key: The endorsement should clearly list the exact types of protection devices (e.g., specific model of safe, type of alarm system) or services (e.g., number of guards, frequency of patrols) required.
• Maintenance is Crucial: The insured has an ongoing responsibility to ensure the specified protections are active, maintained, and functioning correctly. Failure to do so, even temporarily, could jeopardize coverage. For instance, if an alarm system is required but is turned off or malfunctioning during a burglary, the claim might be denied.
• Notification of Changes: If the insured makes any changes to the protective systems (e.g., discontinues a guard service, changes alarm companies), they should notify the insurer immediately, as this may require a policy amendment.
• Premium Impact: The presence and quality of protective devices often influence the premium. This endorsement formalizes the reliance on these protections.

Key information for agents and underwriters

For Agents:

• Thoroughly explain the conditions of this endorsement to the insured, emphasizing the importance of maintaining the specified protections.
• Ensure the protective devices listed in the policy accurately reflect what the insured has in place.
• Advise the insured to keep records of maintenance and service for their protective systems (e.g., alarm service contracts, inspection reports).
• Discuss the potential consequences of non-compliance at the time of a claim.

For Underwriters:

• This endorsement is a critical tool for managing crime risk. Verify the adequacy of the specified protections relative to the insured's exposure.
• Consider requiring inspections or certifications for certain protective devices (e.g., UL-certified safes or alarm systems).
• Clearly document the agreed-upon protective measures in the policy.
• During a claim investigation, if this endorsement is active, the adjuster will verify that the required protections were in place and operational at the time of the loss.
• The pricing of the crime coverage may be significantly influenced by the presence and reliability of the protections mandated by this endorsement.