1. Forms
2. CR
3. CR-25-04

Form CR 25 04: Include Specified Employees Only

1. What the form is

The CR 25 04 "Include Specified Employees Only" endorsement is a modification to the standard Commercial Crime policy, specifically impacting the Employee Theft insuring agreement. Its primary function is to restrict coverage for employee theft to only those employees who are expressly named, or whose specific positions are listed, in the schedule of the endorsement. Instead of providing broad coverage for theft committed by any individual meeting the policy's definition of an "employee," this endorsement narrows the scope significantly. If an act of theft is committed by an employee who is not identified in the CR 25 04 schedule, the Employee Theft coverage will not apply to that loss. This endorsement serves as a method to precisely define and limit the insurer's exposure under the Employee Theft coverage part.

2. Classes of business it applies to

This endorsement is typically utilized in scenarios where the insured or the underwriter wishes to limit the exposure of employee dishonesty to a select group of individuals. It can be suitable for:

• Businesses with limited financial exposure: Companies where only a very small number of employees have access to or control over significant company assets, such as money, securities, or other valuable property.
  • Real-world example: A small medical practice where only the office manager and one specific administrative assistant are authorized to handle patient payments, bank deposits, and financial records. The practice might use CR 25 04 to schedule only these two positions or individuals.
• Cost-sensitive insureds: Organizations seeking to reduce their Commercial Crime insurance premium by narrowing the scope of Employee Theft coverage to essential personnel only.
• High-risk operations or those with specific trust concerns: As an underwriting tool, this endorsement might be applied to businesses that are otherwise considered high-risk for broader employee theft coverage due to industry type, past loss history, or perceived weaknesses in internal controls for the general employee population.
  • Real-world example: A jewelry store with several sales associates might have Employee Theft coverage restricted to only the store manager and the assistant manager by name, who have undergone extensive background checks and have primary responsibility for inventory and cash management.
• Organizations with clearly segregated financial duties: Businesses where financial responsibilities are concentrated among a few easily identifiable and consistently held positions.
  • Real-world example: A manufacturing company where all outgoing payments and payroll are processed by a "Chief Financial Officer" and a "Head of Payroll," making these positions suitable for scheduling if limited coverage is desired.

3. Special considerations

Several critical factors must be considered when utilizing the CR 25 04 endorsement:

• Significant Coverage Reduction: This is the most crucial aspect. The insured must fully comprehend that any theft perpetrated by an employee not listed in the endorsement's schedule will be excluded from coverage under the Employee Theft insuring agreement. This creates a substantial uninsured exposure for the business.
• Accuracy and Maintenance of