1. Forms
2. CR
3. CR-15-10

What the Form Is

The CR 15 10 "Forceable Entry Into Premises Required" endorsement is attached to a commercial crime insurance policy. Its primary function is to add a specific condition for coverage related to losses arising from perils such as burglary. This condition mandates that there must be clear, visible signs of actual force used to gain unlawful entry into or exit from the insured's premises for the loss to be covered under the policy. Without such evidence, claims for these types of losses may be denied.

Classes of Business It Applies To

This endorsement is typically used for various classes of business that have exposure to burglary or similar crimes at their physical locations. Examples include:

• Retail Stores: Businesses selling merchandise that could be a target for burglars (e.g., electronics stores, jewelry stores, clothing boutiques). For instance, if a clothing store is burglarized, this endorsement would require evidence like a broken window or a pried-open door for the theft of inventory to be covered.
• Offices: Businesses that may keep valuable equipment or sensitive information on-site.
• Warehouses: Facilities storing goods or raw materials.
• Manufacturing Plants: Locations with machinery, tools, and finished products.

Essentially, any commercial policyholder with a crime policy covering burglary of property from their premises might have this endorsement attached, often at the insurer's discretion based on risk assessment.

Special Considerations

There are important considerations for both the insured and the insurer regarding this endorsement:

• Limitation of Coverage: The most significant aspect is that it restricts coverage. If a theft occurs without any visible signs of forced entry – for example, if a door was inadvertently left unlocked, or if a theft was committed by someone who had legitimate access or used a stolen key without force – the policy may not cover the loss.
• Definition of "Forcible Entry": The policy wording, including this endorsement, should clearly define what constitutes "forcible entry." This typically means damage to the exterior or interior of the premises at the point of entry or exit, such as broken locks, smashed doors or windows, or holes cut in walls or roofs.
• Impact on Security Measures: Insureds should be aware that their security measures must be robust enough to necessitate force for a break-in if they expect coverage under this provision. For example, relying solely on alarms without strong physical barriers might still lead to a denied claim if entry was gained without force.

Key Information for Agents and Underwriters

• Agents: It is crucial for agents to thoroughly explain the implications of the CR 15 10 endorsement to their clients. Insureds must understand that losses not involving visible signs of forced entry might not be covered. Agents should review the insured’s physical security measures in light of this requirement.
• Underwriters: Underwriters may use this endorsement to mitigate risk, particularly for businesses with higher susceptibility to burglary or those with weaker internal controls that might lead to non-forcible thefts. When this endorsement is part of the policy, underwriters are looking for evidence of robust physical security. The presence of this endorsement might influence premium calculations, potentially offering a slight reduction due to the narrowed coverage. Risk assessment should include evaluating the types of locks, doors, windows, and overall construction of the premises.