1. Forms
2. CR
3. CR-25-09

What the form is

The CR 25 09 Include Volunteer Workers As Employees endorsement is designed to amend the definition of an "employee" within a commercial or government crime insurance policy. Its primary function is to extend coverage for losses resulting from theft or other dishonest acts committed by individuals who perform services for the insured organization on a volunteer basis, without compensation. By adding this endorsement, such volunteers are considered "employees" for the purpose of the employee theft insuring agreement, allowing the insured to recover losses caused by these individuals as if they were regular, compensated employees.

Classes of business it applies to

This endorsement is particularly crucial for organizations that heavily rely on volunteer labor. Common examples include:

• Non-profit organizations: Charities, foundations, community service groups, and religious institutions often have volunteers handling donations, managing finances, or accessing valuable property. For instance, a church where volunteers count weekly collections or a food bank where volunteers manage inventory and distribution.
• Governmental entities: Municipalities, schools, or public libraries may use volunteers for various functions, including those with financial responsibilities. An example would be a town's volunteer fire department that conducts fundraising, or a public school where parent volunteers manage funds for school events.
• Community associations: Homeowners associations or community recreational clubs might have volunteer treasurers or board members with access to funds.

Special considerations

• Necessity of Endorsement: Standard crime policies typically do not automatically include volunteers in the definition of "employee." Therefore, without this endorsement (or a similar one), theft committed by a volunteer would likely not be covered.
• Scope of Volunteer Duties: It is important to consider the roles and responsibilities of volunteers. If they handle cash, checks, securities, or have access to sensitive information or valuable property, this endorsement is highly recommended.
• Fund Solicitors: The standard CR 25 09 typically includes volunteers acting as fund solicitors during fundraising campaigns. However, there is a separate endorsement, CR 25 10 (Include Volunteer Workers Other Than Fund Solicitors as Employees), which specifically excludes fund solicitors. It's important to select the correct endorsement based on the organization's needs and the activities of its volunteers.
• Policy Inception: It is advisable to consider adding this endorsement at policy inception if volunteers are utilized, or even if there's a possibility of using volunteers during the policy term, to avoid potential coverage gaps.

Key information for agents and underwriters

• Risk Assessment: Agents should proactively inquire about the involvement of volunteers when discussing crime coverage with clients, especially those in the non-profit and public sectors. Underwriters will need to assess the extent of volunteer involvement, including the number of volunteers, their specific duties, the level of access they have to assets, and the internal controls the organization has in place to supervise volunteers and mitigate potential losses.
• Clarity of Definition: Ensure the definition of "volunteer worker" in the endorsement aligns with the organization's actual volunteer program and meets the insured's needs.
• Internal Controls: While this endorsement provides coverage, it does not replace the need for strong internal controls. Underwriters will look more favorably upon organizations that have established procedures for screening volunteers (where appropriate and permissible), segregating duties, and conducting regular audits, even when volunteers are involved.
• Limit Adequacy: The inclusion of volunteers effectively increases the number of individuals who fall under the definition of "employee." Agents and insureds should review the limit of insurance for Employee Theft coverage to ensure it is adequate considering this expanded exposure.
• Pricing: The premium for crime coverage may be affected by the addition of this endorsement, reflecting the increased risk exposure due to a larger pool of individuals being considered employees.