1. Forms
2. CR
3. CR-15-27

What the Form Is

The CR 15 27 is an endorsement used with Commercial Crime insurance policies. Its primary purpose is to broaden the scope of coverage in specific ways. It achieves this by extending coverage to property that is in the care, custody, and control of agents designated by the insured, who may not be traditional employees. Additionally, this endorsement can be used to add specific individuals or entities, such as contract employees, spouses of corporate owners, or other types of agents, to the policy, potentially classifying them as 'messengers' or including them under the definition of 'employee' for certain insuring agreements.

Classes of Business It Applies To

This endorsement is suitable for a variety of businesses that have unique operational structures or exposures not typically covered by standard crime policy language. Examples include:

• Businesses that regularly use independent contractors or third-party agents to handle, transport, or manage valuable property (e.g., specialized delivery services, outsourced cash management).
• Companies where non-employees, such as consultants or temporary staff (contract employees), have access to or responsibility for company assets and need to be covered under the crime policy.
• Family-owned businesses where spouses of owners are actively involved and might handle company funds or property, necessitating their inclusion for crime coverage.
• Organizations that rely on volunteers or other non-employee agents for certain functions involving valuable property.

Special Considerations

Several important points should be considered when using the CR 15 27 endorsement:

• Clear Designation: It is crucial to clearly identify and schedule the 'designated agents' or 'other persons' to whom coverage is being extended. Ambiguity can lead to coverage disputes.
• Scope of Coverage: The endorsement should specify which crime insuring agreements apply to these designated agents or other persons. For instance, are they covered for employee theft, or only as messengers for outside the premises risks?
• Rating Impact: The snippet suggests that adding these individuals or extending coverage to property in an agent's custody may impact the premium. For example, it states to "Rate as additional messenger, charging only for the insured's exposure." This implies a specific rating methodology that needs to be applied.
• Underlying Policy Terms: This endorsement modifies the main crime policy; all other terms, conditions, and exclusions of the policy will still apply unless specifically amended by this endorsement.

Key Information for Agents and Underwriters

For Agents:

• Thoroughly discuss with the client their operational procedures to identify any exposures involving non-employees handling property or funds.
• Explain the benefits and potential costs of adding this endorsement.
• Ensure that any designated agents or other persons are accurately described and listed as required by the insurer.
• Clarify the extent of coverage provided to these additional parties (e.g., which insuring agreements apply).

For Underwriters:

• Carefully assess the risk associated with the designated agents or other persons being added. This includes understanding their roles, responsibilities, and the controls in place.
• Evaluate the nature and value of the property that will be in the custody of designated agents.
• Apply appropriate rating for the increased exposure, as indicated by guidelines (e.g., rating as an additional messenger).
• Ensure the policy clearly reflects who is considered a designated agent or other covered person to avoid ambiguity at the time of a claim.
• Consider if any additional underwriting information or security measures are necessary based on the specific circumstances of the risk.