What it does
CR 20 14 directs payment of covered loss to the loss payee in the schedule, as its interest may appear, and the insurer will not pay the insured alone without the loss payee's written request. The coverage remains for the insured's benefit only, claims must be presented by the insured, and the limit is not increased.
Who needs it
Clients, lenders, franchisors, government agencies or program sponsors that require payment of crime losses to them, for example under janitorial or staffing contracts, agency agreements or grant terms.
How it fits the policy
This endorsement changes the base crime or fidelity form it is attached to and is listed with the other endorsements on the declarations. Schedules in the endorsement (names, positions, amounts or dates) control how it applies, so confirm the schedule is complete before binding. ISO's forms index lists the current edition for 52 jurisdictions.
Quoting and selling notes
- Read the contract: some require the client as "loss payee", others as a joint insured (CR 20 31).
- Pair with CR 04 01 or the clients' property agreement when the client's own property is at risk.
