1. Forms
2. CR
3. CR-15-14

What the Form Is

The CR 15 14 is an endorsement used with Commercial Crime insurance policies. Its primary purpose is to allow an insured to apply a lower limit of insurance than the main policy limit to specific, clearly identified exposures. These exposures can include designated premises (such as a particular retail outlet or a remote warehouse), named messengers, or specified armored motor vehicle companies that handle the insured's property. By using this endorsement, a business can tailor its crime coverage more precisely to its actual risks at different points of operation or transit.

Classes of Business It Applies To

This endorsement is suitable for a wide range of businesses that have varying crime exposures across their operations. Examples include:

• Retail Operations: A business with multiple store locations where some locations handle significantly less cash or valuable merchandise than others might use this endorsement to apply a lower limit to the lower-exposure stores.
• Businesses with Messenger Services: If a company employs messengers to transport money or securities, but certain messengers or routes consistently handle lower values, the CR 15 14 can reduce the applicable limit for those specific messenger exposures.
• Users of Armored Transport: Companies that utilize armored car services for transporting valuables might find that the standard policy limit for outside premises coverage is higher than needed for the typical values handled by the armored car. This endorsement allows them to set a more appropriate, reduced limit specifically for the armored motor vehicle coverage.

Special Considerations

• Clear Designation Required: It is crucial that the endorsement schedule clearly and unambiguously identifies the specific premises, messengers, or armored motor vehicle companies to which the reduced limit applies. Any lack of clarity could lead to coverage disputes at the time of a claim.
• Adequacy of Reduced Limits: While reducing limits can lead to premium savings, businesses must carefully assess the actual potential loss at the designated exposures. Setting a limit too low could result in being underinsured if a loss exceeds the reduced amount.
• Premium Adjustment: The use of this endorsement typically results in a premium reduction, as the rate for the designated exposure will be based on the lower limit of insurance.
• Policy Structure: This endorsement modifies the existing coverage; it does not provide new coverage. It works in conjunction with the main Commercial Crime coverage form(s).

Key Information for Agents and Underwriters

• Agents:
  • Should proactively discuss with clients their different crime exposures across various locations and transit methods to see if this endorsement could provide a more cost-effective and tailored coverage solution.
  • Must ensure precise and accurate information is provided in the endorsement schedule regarding the designated exposures and the applicable reduced limits.
  • Need to counsel clients on the implications of reducing limits and the potential for out-of-pocket expenses if a loss exceeds the reduced limit.
• Underwriters:
  • Must carefully review the designated exposures and the proposed reduced limits to ensure they are reasonable and reflect a realistic assessment of the risk.
  • The rating for the exposures subject to this endorsement will be based on the reduced limit.
  • Should verify that the underlying Commercial Crime policy and any other relevant endorsements are correctly structured to interact with CR 15 14.
  • Consider the overall impact on the insured's risk management strategy when lower limits are applied to certain parts of their operations.