CR 00 28–EMPLOYEE THEFT AND FORGERY POLICY (DISCOVERY FORM) AND CR 00 29–EMPLOYEE THEFT AND FORGERY POLICY (LOSS SUSTAINED FORM)

(July 2019)

INTRODUCTION

The Insurance Services Office (ISO) Employee Theft and Forgery Policies are restricted versions of the ISO Commercial Crime Coverage Form or Policy. Many parts of the ISO Commercial Crime Coverage Form or Policy are not in the Employee Theft and Forgery Policies. They are available only as a standalone, "Fidelity Only" Policy.

There are two different policy forms:

• CR 00 28–Employee Theft and Forgery Policy (Discovery Form)
• CR 00 29–Employee Theft and Forgery Policy (Loss Sustained Form)

This analysis compares CR 00 29–Employee Theft and Forgery Policy (Loss Sustained Form) to CR 00 23–Commercial Crime Policy (Loss Sustained Form).

Related Article: ISO Commercial Crime Coverage Forms and Policies Analysis

CR DS 05–EMPLOYEE THEFT AND FORGERY POLICY DECLARATIONS

The only difference between the CR DS 05–Employee Theft and Forgery Policy Declarations and DS 02–Commercial Crime Policy Declaration is that the only insuring agreements listed are:

1. Employee Theft

2. Forgery or Alteration

CR 00 29–EMPLOYEE THEFT AND FORGERY POLICY (LOSS SUSTAINED FORM) ANALYSIS

Insuring Agreements

The following insuring agreements in the Commercial Crime Policy are not in the Employee Theft and Forgery Policy:

• Inside the Premises–Theft of Money and Securities
• Inside the Premises–Robbery or Safe Burglary of Other Property
• Outside the Premises
• Computer Fraud
• Funds Transfer Fraud
• Money Order and Counterfeit Money

The only remaining insuring agreements are Employee Theft and Forgery or Alteration. The language in these insuring agreements is identical to the language for the same insuring agreements in the Commercial Crime Policy.

Limits and Deductibles

The Limits and Deductible sections are identical in both policies.

Exclusions

1. The following exclusions in the Commercial Crime Policy are not in the Employee Theft and Forgery Policy:

• Governmental Action
• Nuclear Hazard
• Pollution
• War and Military Action
• Exclusions that apply to Insuring Agreements A. 3. A. 4., A. 5., and A. 6. are not in the Employee Theft and Forgery Policy because the policy does not include those Insuring Agreements.

2. Acts Committed by Your Employees, Managers, Directors, Trustees, or Representatives is slightly rewritten to state that it applies to only Forgery or Alteration coverage instead of the wording in the CR 00 29 that states it applies to all insuring agreements except for Insuring Agreement 1.

CONDITIONS

None of the conditions in the Commercial Crime Policy listed under E. 4. Conditions Applicable to Insuring Agreements A. 4. and A. 5. and under E. 5. Conditions Applicable to Insuring Agreement A. 6. apply to the Employee Theft and Forgery Policy because it does not include these insuring agreements.

Conditions E. 1. a. is titled Additional Premises or Employees in the Commercial Crime Policy but Conditions E. 1. a. titled is Additional Employees in the Employee Theft or Forgery Policy because premises is not relevant to Insuring Agreements 1 and 2.

DEFINITIONS

The following defined terms in the Commercial Crime Policy are not in the Employee Theft and Forgery Policy because the coverages they apply to are not part of that policy.

• Computer program
• Computer system
• Counterfeit money
• Custodian
• Electronic data
• Financial institution
• Financial institution premises
• Fraudulent instruction
• Messenger
• Robbery
• Safe burglary
• Transfer account
• Watchperson

Note: The definition of occurrence in the Employee Theft and Forgery Policy does not contain the reference to all other Insuring Agreements in the Commercial Crime Policy because it does not include those Insuring Agreements.