1. Forms
2. CR
3. CR-15-12

What the form is

The CR 15 12 - Convert to Schedule Coverage endorsement is a commercial crime insurance form. Its primary purpose is to modify a crime policy that initially provides blanket coverage (a single limit applying to all covered property, employees, or locations) to one that provides coverage on a scheduled basis. When this endorsement is attached, the policy will list specific items, positions, employees, premises, or types of property, with a dedicated limit of insurance applicable to each scheduled item or category. This allows for more tailored coverage based on specific exposures.

Classes of business it applies to

This endorsement can be used for various businesses that have specific, identifiable crime exposures they wish to insure with precise limits, rather than a broad blanket limit. Examples include:

• Businesses with multiple locations where the risk of crime (e.g., robbery, burglary) varies significantly by location. Instead of a single blanket limit, each premise can be scheduled with a limit appropriate for its exposure.
• Companies wanting to schedule coverage for specific employee positions that handle money, securities, or other valuable property, particularly if the exposure is concentrated among a few key roles.
• Organizations that have distinct types of valuable property (e.g., money and securities at a specific office, other property at a warehouse) and want to assign different coverage limits to each.

For instance, a retail chain might use this endorsement to apply different robbery coverage limits to its downtown high-traffic store versus its quieter suburban outlet. Or, a company might schedule higher employee dishonesty coverage for its CFO and treasurer positions compared to other employees.

Special considerations

• Specificity is Key: When converting to schedule coverage, it's crucial that the schedule accurately and comprehensively lists all items, persons, or locations intended to be covered. Anything not on the schedule may not be covered, or covered differently, depending on policy terms.
• Potential for Gaps: If new exposures arise (e.g., a new location is opened, a new high-risk employee position is created) and are not added to the schedule, they may be uninsured or underinsured. Regular policy reviews are essential.
• Premium Impact: Converting to schedule coverage can impact the premium. It might decrease if the total scheduled limits are less than a previous blanket limit or if high-risk exposures are specifically excluded or limited. Conversely, it could increase if specific high limits are assigned to numerous scheduled items.

Key information for agents and underwriters

• Risk Assessment: Underwriters will need detailed information about each item, location, or position to be scheduled to assess the specific risk and determine appropriate pricing. This includes details about security measures, exposure levels, and loss history for each scheduled component.
• Clarity of Schedule: Agents should work closely with insureds to ensure the schedule is clear, accurate, and complete to avoid misunderstandings at the time of a claim. The description of each scheduled item and its corresponding limit must be precise.
• Comparison to Blanket Coverage: Agents should explain the pros and cons of scheduled versus blanket coverage to the insured. While scheduled coverage can offer premium savings or more precise limit allocation, blanket coverage provides broader protection without the need to specifically list every exposure.
• Underwriting Guidelines: Underwriters may have specific guidelines on the minimum or maximum limits that can be scheduled for certain types of property or exposures, and may require specific risk control measures for scheduled items. For example, a high limit scheduled for cash at a specific premise might require a certain grade of safe or alarm system.