1. Forms
2. CR
3. CR-DS-01

What the form is

The CR DS 01, titled "Crime and Fidelity Coverage Part Declarations (Commercial Entities)", is a standard Insurance Services Office (ISO) declarations form. It serves as a crucial component of a Commercial Crime insurance policy for businesses and other commercial organizations. This form doesn't provide coverage on its own; rather, it personalizes the accompanying Commercial Crime Coverage Form(s) by detailing the specific choices made by the insured. It outlines the named insured, policy period, the insuring agreements selected, the limits of insurance for each, and the applicable deductible amounts per occurrence.

Classes of business it applies to

This declarations form is designed for a wide range of commercial entities. Examples include:

• Retail businesses
• Manufacturing companies
• Service providers (e.g., accounting firms, law offices)
• Wholesalers and distributors
• Non-profit organizations (that are not governmental entities)

Essentially, any commercial operation that needs to protect itself from losses due to crime, such as employee theft, forgery, or computer fraud, would utilize this declarations page in conjunction with the relevant crime coverage forms. Governmental entities would typically use a different declarations form, such as the CR DS 03.

Special considerations

Key considerations for the CR DS 01 include:

• Not a standalone document: It must be attached to one or more Commercial Crime Coverage Forms (e.g., CR 00 21 Loss Sustained Form, CR 00 22 Discovery Form) to create a complete coverage part or policy.
• Defines scope of coverage: The information on this form is paramount. If an insuring agreement is not listed or if "Not Covered" is indicated next to it, there is no coverage for that type of loss, regardless of what the attached coverage form might generally offer.
• Accuracy is critical: Incorrect limits or deductibles can lead to significant coverage gaps or misunderstandings at the time of a claim.
• Multiple Insuring Agreements: The form allows for the selection of various crime insuring agreements, such as Employee Theft, Forgery or Alteration, Inside the Premises – Theft of Money and Securities, Inside the Premises – Robbery or Safe Burglary of Other Property, Outside the Premises, Computer and Funds Transfer Fraud, and Money Orders and Counterfeit Money. The insured chooses which of these to purchase.

Key information for agents and underwriters

For agents:

• Thoroughly review with the client to ensure all desired coverages are selected and that the limits and deductibles accurately reflect the client's needs and risk exposure.
• Explain how each selected insuring agreement functions and any specific conditions or exclusions that might apply.
• Ensure the named insured is correctly and completely identified.

For underwriters:

• This form provides a snapshot of the specific risks being covered and the insurer's maximum exposure for each.
• The selection of coverages, limits, and deductibles are key factors in pricing the crime coverage. For example, a high limit for Employee Theft with a low deductible will carry a higher premium than a lower limit with a higher deductible.
• Review the business operations of the insured in conjunction with the selected coverages to assess the overall risk profile. For instance, a business handling large amounts of cash opting for low limits on "Inside the Premises – Theft of Money and Securities" might be a red flag or indicate a misunderstanding of their exposure.
• The declarations will also list any endorsements that modify the coverage, which must be considered in the overall risk assessment.