What the Form Is
The CR DS 02, titled Commercial Crime Policy Declarations, is a crucial component of a standalone (monoline) Commercial Crime insurance policy. Its primary purpose is to personalize the policy by summarizing key information specific to the insured. This includes identifying the named insured (and any employee benefit plans to be included as insureds), the policy period, the insurance company providing coverage, and the producer who placed the insurance. Most importantly, it lists the specific crime insuring agreements that the insured has purchased, along with the corresponding limits of insurance per occurrence and the deductible amounts for each. Any endorsements that modify the policy are also typically listed on this declarations page. This form is used in conjunction with a Commercial Crime policy form, such as CR 00 22 (Discovery Form) or CR 00 23 (Loss Sustained Form), to create a complete policy.
Classes of Business It Applies To
The CR DS 02 is used for a wide array of commercial entities that opt for a standalone Commercial Crime policy rather than including crime coverage as part of a commercial package. This can span various industries and business types that face risks 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
- Money Orders and Counterfeit Money.
Real-world examples include:
- A retail store concerned about employee theft of cash or merchandise.
- A manufacturing company handling large financial transactions susceptible to forgery or funds transfer fraud.
- A professional services firm (e.g., accounting, legal) holding client funds or sensitive financial data.
- Non-profit organizations that handle donations and are exposed to internal theft.
Special Considerations
One key distinction is that CR DS 02 is utilized for monoline Commercial Crime policies. If crime coverage is part of a Commercial Package Policy (CPP), a different declarations form, CR DS 01 (Crime and Fidelity Coverage Part Declarations), would typically be used. The CR DS 02 incorporates information that might otherwise appear on a Common Policy Declarations page. A critical aspect of this form is the clear stipulation of limits and deductibles for each chosen insuring agreement; coverage under a particular insuring agreement is only activated if a limit of insurance is explicitly shown next to it on the declarations. If an insuring agreement is not purchased, it should be marked as "Not Covered". The form also includes a provision for the cancellation of prior crime policies issued by the same insurer to the named insured, effective upon acceptance of the new policy.
Key Information for Agents and Underwriters
For Agents: Accuracy is paramount when completing the CR DS 02. Agents must ensure that all selected coverages accurately reflect the client's needs and that the corresponding limits and deductibles are correctly entered. Misinformation can lead to significant coverage gaps. It's also important to list all applicable endorsements. Explaining to the insured which coverages are active and which are marked "Not Covered" is crucial for managing expectations.
For Underwriters: The CR DS 02 provides a snapshot of the risk being underwritten and the extent of coverage provided. Underwriters will verify that the limits and deductibles are appropriate for the insured's exposures and in line with underwriting guidelines. They will also confirm that any necessary endorsements are attached. The information regarding the named insured, including any employee benefit plans, and the policy period are fundamental for policy issuance and administration. The section on cancellation of prior insurance helps ensure there is no unintended overlap or gap in coverage with policies previously issued by the same insurer.