What it does
CR 25 02 amends the employee definition to include persons or firms the insured appoints in writing to act as its agent in the capacity shown in the schedule, while acting for the insured or holding covered property. The scheduled limit for agents is part of, not in addition to, the employee theft limit, each agent and its people count together as one "employee", and agents are not covered for faithful performance.
Who needs it
Condominium and homeowners associations whose management company handles association funds, nonprofits using outside bookkeepers, and businesses that use collection agents or brokers who hold their money.
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 51 jurisdictions.
Quoting and selling notes
- Contractors are not employees under the base definition; without this endorsement a management company's theft is uncovered.
- Ask whether the agent carries its own crime coverage and whether the insured is named on it.
- Make sure the agent capacity in the schedule matches the contract (for example "Property Manager").
