1. Forms
2. CR
3. CR-20-31

What the form is

The CR 20 31 "Include As Joint Insured(s)" endorsement is designed to amend a commercial crime insurance policy by adding one or more entities to the policy as named insureds. By adding these entities, the endorsement extends the crime coverage provided by the policy to them, subject to the policy's terms and conditions. Any entity listed in the schedule of the endorsement is considered a Named Insured.

Classes of business it applies to

This endorsement is versatile and can be used for a wide range of businesses that have multiple related entities or wish to provide coverage for associated organizations under a single crime policy. Examples include:

• Parent companies and their subsidiaries: A corporation can use this endorsement to ensure all its subsidiary companies are covered for crime-related losses.
• Franchisors and franchisees: Depending on the franchise agreement and insurance program structure, either party might add the other as a joint insured.
• Affiliated companies or joint ventures: Businesses with close operational or ownership ties can consolidate their crime coverage.
• Governmental entities: A primary government entity might use this to include coverage for specific departments, agencies, or related bodies under its crime policy.

For instance, a large retail chain with multiple incorporated store locations might use CR 20 31 to ensure each store is a joint insured under the main corporate crime policy.

Special considerations

There are several important points to consider when using the CR 20 31 endorsement:

• Clear Identification: The full legal name of each entity to be added as a joint insured must be accurately listed in the schedule of the endorsement.
• Scope of Coverage: While the endorsement adds entities as named insureds, the coverage provided is still governed by the terms, conditions, limits, and exclusions of the underlying crime policy.
• Limits and Deductibles: It's crucial to understand how the policy's limits of insurance and deductibles will apply in the event of a loss involving one or more of the joint insureds. Typically, the policy limits are shared among all insureds unless otherwise specified.
• Cancellation: The policy's cancellation provisions will generally apply to all joint insureds.
• Knowledge of Loss: The policy conditions regarding discovery of loss and reporting requirements will apply to all joint insureds. For example, knowledge of a dishonest act by an employee of one joint insured could impact coverage for all insureds.

Key information for agents and underwriters

Agents and underwriters should pay close attention to the following when dealing with the CR 20 31 endorsement:

• Risk Assessment: Underwriters must evaluate the risk profile of each entity being added as a joint insured. This includes their internal controls, financial stability, and loss history. The addition of multiple entities could significantly alter the overall risk exposure.
• Insurable Interest: Agents should confirm that a valid insurable interest exists between the primary named insured and the entities being added.
• Contractual Requirements: Determine if any contracts (e.g., loan agreements, client contracts) necessitate the addition of specific entities as joint insureds.
• Premium Considerations: The addition of joint insureds may warrant an adjustment in premium to reflect any increased exposure.
• Potential Conflicts: In situations where joint insureds could have competing interests (e.g., in a fidelity claim involving collusion between employees of different joint insureds), it's important to understand how the policy would respond.
• Underlying Policy Compatibility: Ensure the endorsement is compatible with the specific crime coverage form being used (e.g., discovery form vs. loss sustained form).