1. Forms
2. CR
3. CR-00-04

What the form is

The CR 00 04, titled Theft, Disappearance and Destruction of Money and Securities Coverage Form C, is an insurance form developed by the Insurance Services Office, Inc. (ISO). Its primary purpose is to provide coverage for loss of an insured's money and securities. The form covers loss resulting from three perils: theft, disappearance, and destruction. Coverage is typically provided for losses occurring:

• Inside the Premises: Loss of money and securities from within the insured's premises or banking premises.
• Outside the Premises: Loss of money and securities while in the care and custody of a messenger outside the insured's premises.

This form was developed from and provides coverage similar to what was previously found in the Loss Inside and Loss Outside the Premises Coverages of the Blanket Crime Policy and the Comprehensive Dishonesty, Disappearance and Destruction (3-D) Policy, as well as the Money and Securities Broad Form. It's important to note that this form specifically covers money and securities; coverage for "other property" is generally provided under different forms.

Classes of business it applies to

This coverage is crucial for a wide range of businesses that handle cash, checks, money orders, and other securities. Examples include:

• Retail Stores: Businesses with significant cash transactions and on-premises cash storage.
• Restaurants and Hospitality: Establishments that handle daily cash sales and may make night deposits.
• Service Businesses: Companies that collect payments in cash or checks, such as contracting services or professional offices.
• Financial Institutions: While often having more specialized policies, smaller institutions or those needing specific layered coverage might utilize aspects of this coverage.
• Any business whose employees transport money and securities to and from a bank or other locations.

Special considerations

• Definition of "Theft": The term "theft" in this form is broadly defined and replaced the older term "wrongful abstraction" for greater clarity.
• Messenger Provision: Coverage outside the premises is contingent on the money and securities being in the care and custody of a "messenger." The definition of a messenger in the policy is critical.
• Exclusions: Like all insurance forms, CR 00 04 will contain specific exclusions. Common crime policy exclusions might include losses due to war, governmental action, nuclear hazard, or indirect losses. Employee dishonesty is often excluded unless specifically added back or covered under a separate insuring agreement (like Employee Theft, CR 00 01).
• Consolidation into Newer Forms: The ISO commercial crime program has undergone revisions. Many of the coverages traditionally provided by standalone forms like CR 00 04 are now often included as insuring agreements within broader commercial crime coverage forms (e.g., CR 00 20, CR 00 21, CR 00 22, CR 00 23) or policies. This means CR 00 04 might be less commonly issued as a standalone policy today but its provisions remain relevant.
• Limits and Deductibles: Coverage will be subject to limits of insurance specified in the declarations, and a deductible will typically apply to each loss.

Key information for agents and underwriters

• Risk Assessment: Underwriters will closely examine the applicant's cash handling procedures, including frequency of bank deposits, security measures for cash on premises (e.g., safes, alarm systems, surveillance), and procedures for transporting money.
• Exposure Levels: The amount of money and securities typically held on premises and transported by messengers will significantly impact underwriting and pricing.
• Moral Hazard: While this form covers theft by third parties, the overall integrity and internal controls of the business are important underwriting considerations. Employee theft is a separate, though related, exposure.
• Coverage Gaps: Agents should ensure that this coverage integrates properly with other policies the insured may have, such as a Commercial Property policy (which usually provides very limited coverage for money and securities) and Employee Theft coverage, to avoid gaps or unnecessary overlaps.
• Pricing: Premiums will be based on the limits of liability, the deductible, the nature of the insured's operations, the geographic location, loss history, and the strength of their security and internal controls.
• Clarity of Terms: Agents should ensure clients understand key definitions such as "money," "securities," "theft," "messenger," and "premises" as defined in the policy.