CR 04 06–INSIDE THE
PREMISES–ROBBERY OF A WATCHPERSON OR BURGLARY OF OTHER PROPERTY
(February 2026)
This endorsement should
be used when the broader coverage provided by the Insurance Services Office
(ISO) CP 10 30–Special Causes of Loss, used with commercial property coverage
forms, is either unavailable or considered excessive. It adds coverage for
robbery of a watchperson or burglary of other property when it is inside the
insured premises.
This analysis is of the
06 22 edition. Material changes are bolded, but format changes that do not
affect coverage are not highlighted.
This coverage can be
added to any Insurance Services Office (ISO) Commercial Crime or Government
Crime Coverage Form or Policy.
This is an endorsement
to the ISO Commercial Crime or Government Crime Coverage Forms and Policies and
is subject to their conditions, definitions, and exclusions. The only changes
are those within the endorsement.
Section A. Insuring
Agreement of the policy or coverage form now includes the following:
Inside The Premises – Robbery
of a Watchperson or Burglary of Other Property
Coverage applies to:
·
loss
or damage to property, excluding money and securities, but only when it occurs
inside the premises. The damage must result from a robbery of a watchperson or
a burglary. These events can be actual or attempted.
·
Loss
or damage to the premises or its exterior resulting from the actions described
above is also covered. This coverage applies only if the named insured owns the
premises or is legally liable for such damage.
NOTE: Coverage only applies
if there is actual evidence of a crime, such as visible signs of forced entry
or exit, or if the watchperson was threatened.
|
Example: Harry
opens his store one morning and discovers four crates of cigarette cartons
stored in the back room are missing. This loss is not covered because there
is no evidence of forced entry. |
The maximum amount
payable for a loss caused by an occurrence is the Limit of Insurance listed on
the Declaration.
A loss must exceed the
deductible listed in the Declarations before any payment is issued, and even
then, only up to the Limit of Insurance.
With the 0622 editions,
exclusions now have headings.
CR 04 06 adds the
following exclusions to Section D.2. Additional Exclusions Applicable
to Specific Insuring Agreements:
The following
exclusions are not covered under this endorsement:
Coverage does not apply
if a loss happens due to an increase in risk within the insured’s control and
no corrective measures were taken.
Loss from fire is
excluded regardless of how it is caused.
However, the following
exception is covered:
o
Fire
damage to a safe or vault.
NOTE: This coverage is not
intended to be a substitute for property insurance.
|
Example: Burglars removed the safe from the
premises to open it later. The police recovered the safe. The door was still
locked, but the safe itself was badly damaged by the burglars using acetylene
torches to try to open it. The fire damage to the safe is covered. |
NOTE: With the 06 22
edition, loss that occurs during a fire inside the premises has been removed.
·
Motor
Vehicles or Equipment and Accessories
Coverage does not extend to loss or damage of motor vehicles, trailers,
semi-trailers, or any attached accessories.
·
Vandalism
No coverage is provided
for vandalism damage to the covered property, the premises, or the exterior of
the premises. Additionally, damage caused by malicious mischief is not covered.
NOTE: Property coverage forms should be used
to provide this coverage.
CR 04 06 adds one
condition to the E.2. Additional Conditions Applicable to Specific Insuring
Agreements section:
·
Suspension
of Coverage
Coverage is suspended following a loss
until the premises or location is restored to its original condition and
security level prior to the damage or loss. However, this suspension is waived
if at least one watchperson is present on the premises whenever the premises
are closed for business.
|
Example: Thieves kick in the door
at Patrick’s Bakery, breaking the lock. They steal $10,000 worth of property.
Patrick temporarily covers the broken door with a tarp until a new one is
installed. That night, the thieves return, slash the tarp, and steal an
additional $15,000 worth of property. The first loss is covered,
but the second is not, since the security level was less than the level that
existed before the first loss. |
NOTE: With the 06 22 edition, the second condition
for the special limit on precious metals, stones, manuscripts, and drawings has
been eliminated. These items are now included under the same limit, deductible
amount, and terms as other property.
CR 04 06 replaces the
definition of watchperson and adds a new definition for burglary as follows:
Any individual whom the
named insured specifically employs to care for and have custody of property
within the premises. Watchpersons have no duties beyond this role. Additionally,
janitors working for the insured and having care and custody of covered
property are considered watchpersons.
NOTE: The difference between this definition
and the one in the coverage form is that it includes janitors as watchpersons.
There are two parts to
the definition of burglary:
·
Property
must be taken in an unlawful manner from the inside of the premises.
·
There
must be physical signs or marks indicating an entry or exit from the building
by force.
|
Examples:
Scenario 1: John works at Grant’s Fast Food. After
his shift, he realizes he left his backpack at the restaurant. He urgently
needs it but doesn’t have a key. Instead of calling his boss for a key, he
breaks a window, enters the restaurant, retrieves his backpack, and leaves.
This isn’t considered a burglary because John did not take any property
unlawfully. Scenario 2: John’s boss fires him after
discovering he broke into the store after hours. Upset, John sneaks into the
back room unnoticed, steals a box of beef patties, and quickly leaves.
Although he took property unlawfully and was on the premises without
permission, since there were no visible signs of forced entry or exit, a
burglary has not occurred. |