1. Forms
2. CR
3. CR-25-10

What the Form Is

Endorsement CR 25 10, titled "Include Volunteer Workers Other Than Fund Solicitors as Employees," is designed to amend the definition of an "employee" within commercial crime insurance policies. Its primary function is to extend coverage for losses resulting from dishonest acts, such as theft, committed by certain types of volunteers. Specifically, it includes uncompensated individuals who perform services for the insured that are typical of an employee's duties, but it explicitly excludes volunteers whose role involves soliciting funds.

Classes of Business It Applies To

This endorsement is particularly relevant for:

• Non-profit organizations: Charities, community service groups, and similar entities that heavily rely on volunteers for operational tasks (e.g., sorting donations, providing direct services, administrative support) but not for fundraising activities. For example, a local animal shelter that uses volunteers to care for animals and clean facilities, but not to solicit donations.
• Governmental entities: Municipalities or public agencies that may utilize volunteers for various community programs or services, provided these volunteers are not engaged in fund solicitation. For instance, a town's parks and recreation department using volunteers for event support or park maintenance (excluding fundraising for these activities).

Special Considerations

• Exclusion of Fund Solicitors: It is crucial to note that this endorsement specifically excludes volunteers who are involved in soliciting funds. If an organization needs coverage for volunteers who do handle fundraising, a different endorsement, such as CR 25 09 ("Include Volunteer Workers as Employees"), would be more appropriate.
• Scope of Duties: The volunteers covered by this endorsement must be performing duties that are usual to those of a regular employee. This helps define the scope of their activities and potential exposures.
• Uncompensated Status: The individuals must be true volunteers, meaning they are not compensated for their services.
• Policy Applicability: This endorsement is used to modify various crime coverage forms and policies, including Commercial Crime Coverage Forms, Commercial Crime Policies, Employee Theft and Forgery Policies, and their governmental counterparts.

Key Information for Agents and Underwriters

• Risk Assessment: Adding volunteers as employees increases the potential for employee theft claims. Underwriters should evaluate the insured's volunteer management practices, including screening processes, supervision levels, and the extent of volunteers' access to money, securities, or other valuable property.
• Addressing a Coverage Gap: Without this endorsement or a similar one like CR 25 09, dishonest acts committed by volunteers would typically not be covered under the standard definition of "employee" in a crime policy. This endorsement closes that potential gap for non-fundraising volunteers.
• Pricing Implications: The inclusion of this endorsement may impact the premium, reflecting the broadened coverage and increased risk exposure.
• Distinction from CR 25 09: Agents must clearly understand the insured's needs regarding volunteer activities. If fundraising volunteers require coverage, CR 25 10 is unsuitable, and CR 25 09 should be considered. This distinction is critical to avoid coverage disputes.
• Underwriting Scrutiny: Underwriters will likely want to understand the nature and number of volunteers, the tasks they perform, and the internal controls in place to mitigate potential losses.