What it does
CR 04 01 provides crime coverage for property of the insured's clients stolen by the insured's own employee. In the 2006-era edition (titled Clients' Property) the endorsement added an insuring agreement paying for a client's money, securities and other property lost through theft by an identified employee, covering property the client owns, leases or holds for others, while making clear the coverage benefits only the named insured. The employee must be identified; unidentified-employee losses are not covered.
In the 06 22 crime program, Employee Theft Of Clients' Property became part (c) of the Fidelity insuring agreement in the base forms, with its own limit line in the declarations. ISO keeps CR 04 01 on its forms list in a 05 23 edition, and carriers that moved to the current program replaced the 08 13 edition with it.
Who needs it
Janitorial and cleaning contractors, staffing agencies, IT and managed-service providers, bookkeepers and payroll firms, home health and home-care agencies, security guard companies, movers, and property managers. Client contracts and master service agreements frequently require "third-party" or "client coverage" crime insurance with the client named as loss payee.
How it fits the policy
Optional insuring agreements like this one are not part of the base forms. When attached, the agreement and its limit and deductible are shown in the declarations under the insuring agreements added by endorsement, and the agreement is subject to the base form's general exclusions and conditions, including the discovery or loss sustained trigger of the form it is attached to. ISO's forms index lists the current edition for 51 jurisdictions.
Quoting and selling notes
- Read the client contract for the required limit, whether the client must be a loss payee (CR 20 14) and whether unidentified-employee losses must be covered.
- Ask how many employees work on client premises and whether background checks are done.
- Confirm the limit line for Employee Theft Of Clients' Property is filled in on the 06 22 declarations; it is separate from the insured's own employee theft limit.
