What it does
The fidelity agreements cover theft and, for ERISA plans, fraud or dishonesty. CR 25 18 extends the employee theft coverage of the commercial forms to loss caused by an employee's failure to faithfully perform his or her duties. Government forms use CR 25 19 or CR 25 43.
Who needs it
Organizations whose contracts, regulators or bylaws call for faithful performance coverage, such as nonprofits receiving grants, cooperatives and certain licensed businesses.
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
- Faithful performance claims can involve negligence rather than theft; underwriters may limit the amount.
- Confirm the contract wording ("faithful performance") against the endorsement schedule.
