1. Forms
2. CR
3. CR-15-24

What the Form Is

The CR 15 24, officially titled "Increase Limit Of Insurance For Specified Periods," is an endorsement to a Commercial Crime insurance policy. Its primary purpose is to allow businesses to temporarily increase their crime coverage limits during defined periods when they anticipate a higher risk or greater exposure to loss. This is commonly referred to as a "Peak Season Endorsement." The increase in limits applies only to losses occurring during the specified period shown in the endorsement schedule.

Classes of Business It Applies To

This endorsement is particularly beneficial for businesses that experience predictable, seasonal fluctuations in their assets or operations that could lead to a greater potential for crime losses. Examples include:

• Retail Stores: During holiday seasons (e.g., Christmas, Black Friday, back-to-school) when cash on hand, inventory, and customer traffic are significantly higher.
• Hospitality Businesses: Hotels, resorts, and restaurants during peak tourist seasons or special events.
• Agricultural Businesses: During harvest or planting seasons when there might be large quantities of valuable products, seeds, or supplies stored.
• Event-Based Businesses: Companies that handle large sums of money or valuable property for specific, short-term events like festivals, concerts, or trade shows.
• Wholesalers and Distributors: Businesses that may have temporarily higher inventories at certain times of the year.

Special Considerations

• Specified Periods: The endorsement requires the exact start and end dates for the increased limit to be clearly defined and scheduled. Coverage reverts to the standard policy limit outside of these dates.
• Discovery Period: A critical aspect is that the time frame an insured has to discover a loss that occurred during the specified period might be limited, potentially shorter than the discovery period in the underlying policy. For example, it might be restricted to one year after the end of the endorsement period.
• Premium Calculation: The premium for this endorsement is typically calculated on a pro-rata basis, reflecting the temporary increase in exposure.
• Scope of Increase: It's essential to clearly define which crime insuring agreements (e.g., Employee Theft, Forgery, Inside the Premises – Theft of Money and Securities) and what types of property the increased limit applies to.
• Not Automatic: This coverage increase is not automatic and must be specifically requested by the insured and added to the policy by endorsement.

Key Information for Agents and Underwriters

• Needs Assessment: Agents should proactively discuss seasonal needs with clients to identify predictable peak periods and accurately estimate the necessary increase in coverage limits. This helps prevent underinsurance during critical times.
• Clear Documentation: Underwriters and agents must ensure the endorsement schedule is precise, clearly stating the specific dates of the increased coverage, the increased limit amount(s), and the specific coverage parts affected.
• Explain Limitations: Agents have a crucial role in explaining the terms and conditions to the insured, especially any limitations on the discovery period for losses occurring during the peak season. This manages expectations and prevents potential disputes at the time of a claim.
• Risk Assessment: While the endorsement addresses temporary increased exposure, underwriters should still consider the insured's overall risk management practices during these peak periods (e.g., cash handling procedures, security measures).
• Coordination with Base Policy: Ensure the endorsement integrates correctly with the underlying Commercial Crime coverage form(s) (such as CR 00 01 Employee Theft, CR 00 05 Robbery and Safe Burglary) and the Crime General Provisions form (e.g., CR 10 00).