1. Forms
2. CR
3. CR-04-05

What the form is

The CR 04 05, titled "Inside The Premises - Theft of Other Property," is an endorsement to ISO Commercial or Government Crime Coverage Forms and Policies. Its primary purpose is to expand coverage to include direct physical loss of or damage to "other property" (which excludes money and securities) resulting from theft committed inside the named insured's "premises." Additionally, the endorsement covers damage to the interior and exterior of the "premises" that the named insured owns or is legally liable for, if such damage is caused by an actual or attempted theft of "other property." The term "premises" generally refers to the interior of that portion of any building the named insured occupies in conducting its business.

Classes of business it applies to

This endorsement is suitable for a wide range of commercial and governmental entities that face an exposure to theft of tangible property, other than money and securities, from within their premises. It is particularly useful when broader special causes of loss property coverage (like that provided by form CP 10 30) is either not available or is considered more extensive than what the insured needs. Real-world examples include:

• Retail stores concerned about the theft of merchandise from display cases or stockrooms.
• Offices with valuable equipment, fixtures, or fittings.
• Service businesses that maintain an inventory of parts or supplies on their premises.
• Manufacturing facilities with raw materials, tools, or finished goods (excluding money and securities) stored indoors.

Special considerations

Several important points should be considered when utilizing the CR 04 05 endorsement:

• A specific limit of insurance and deductible for this coverage must be scheduled on the policy declarations.
• The endorsement adds its own set of exclusions to those already present in the base crime policy. For instance, there is typically no coverage for loss occurring if there's a change in the condition of the risk within the insured's control that increases the possibility of loss and isn't rectified. Another common exclusion relates to loss resulting from the voluntary parting with property due to unauthorized instructions or threats.
• Following a covered loss, coverage under this endorsement may be suspended until the premises are restored to the same condition and level of security that existed before the loss. However, this suspension might be waived if at least one watchperson is on duty whenever the premises are closed for business.
• The definition of "other property" explicitly excludes items like computer programs and electronic data.
• It's important to note that revisions, such as the 2022 update, may alter terms like sublimits. For example, a previous $5,000 limit for precious metals, stones, pearls, furs, manuscripts, and drawings was removed, making such items subject to the main "other property" limit.

Key information for agents and underwriters

Agents and underwriters should be mindful of the following when dealing with the CR 04 05:

• This endorsement addresses a specific coverage gap for theft of tangible assets other than money and securities from inside the premises.
• Risk assessment should involve a thorough evaluation of the types and values of "other property" on the insured's premises, as well as the existing physical security measures (e.g., alarms, locks, surveillance).
• The rating for this endorsement can be influenced by factors such as the nature of the insured's business and the type of property being insured. For example, retailers with high-value items in showcases might attract higher rates. The ISO Commercial Lines Manual rules may provide specific rating guidance for different property types like fixtures, fittings, or property in public hallways.
• It is crucial to explain the specific exclusions and conditions of this endorsement to the insured to prevent misunderstandings at the time of a claim.
• The CR 04 05 is an endorsement and is therefore subject to all applicable conditions, definitions, and exclusions of the underlying crime coverage form or policy to which it is attached, unless expressly modified by the endorsement itself.