What it does
CR 00 27 is the stand-alone government crime policy, issued with the CR DS 04 declarations.
It follows the commercial crime structure (employee theft, forgery or alteration, inside and outside the premises, computer and funds transfer fraud, fraudulent impersonation, money orders and counterfeit money) but is built for public bodies: employee theft can be written per loss or per employee, there is no ERISA plan official agreement (public plans are not ERISA plans), and endorsements address officials who must be bonded by statute.
This is the loss sustained version: the occurrence must take place during the policy period and be discovered within the policy period or the extended discovery period that follows it. Loss that happened under an earlier policy is picked up only through the prior-insurance provisions, so continuous coverage matters when changing carriers.
Who needs it
Cities, counties, townships, special districts, school districts, public utilities and state agencies. State statutes and local ordinances often require bonds on treasurers, tax collectors, clerks and other officials; the government crime forms are frequently used as a blanket alternative to individual public official bonds, with endorsements for excess over statutory bonds and faithful performance of duty.
Key provisions
Employee theft for public entities is commonly written per loss with an aggregate approach to employees, or per employee where statutes require each official to be covered for a set amount. Faithful performance of duty is not covered unless added (CR 25 19 or CR 25 43). Loss caused by treasurers or tax collectors, and by employees required by law to be individually bonded, falls under specific exclusions; CR 25 12 brings scheduled treasurers and tax collectors in as employees, and CR 25 32 deletes those exclusions for the amount above the statutory bond.
Quoting and selling notes
- Get the list of positions that statutes require to be bonded, and the required amounts.
- Ask whether elected officials, treasurers, tax collectors, students handling funds or volunteers need to be included.
- Confirm whether a per loss or per employee basis matches the entity's statutory requirements; CR 25 33 can write per loss coverage excess over per employee coverage.
- Joint insureds (departments, boards, authorities) can be given additional blanket limits with CR 25 31.
Related forms
See CR 00 26, CR 00 25, declarations CR DS 03/CR DS 04, and endorsements CR 25 12, CR 25 19, CR 25 32, CR 25 31, CR 25 13.
