Countersignature Insurance Plan Made Easy

Countersignature insurance plan

hey everybody Josh Nordine with another exciting Accord form video this is the Accord 141 crime section now if you're looking at this form and you have one in front of you that looks a little bit different do not be alarmed they all have the same information it's just over the years ISO has changed a record has changed these forms from time to time and they have the same information they just might be in a little bit of a different format I'm using the 2011 version you might have one that's either a little bit newer a little bit older but regardless it's the same information in crime is something that was kind of confusing to me when I first got into commercial insurance I want to demystify crime insurance today as well as go through the coverages and how to fill this out so first off crime insurance and and is really predominantly centered around employee related losses like theft forgery that sort of thing basically embezzlement when employees take things but it can also include robbery and burglary inside the premises so a lot of times when you get a business owners policy these sort of things can automatically be included which is why a lot of times you will never have to fill out a crime section an accord 141 lucky for you but every once in a while you run into an entity that's large enough that they need more coverage than what the business owners policy or commercial package is gonna offer in that case you will need to fill out the Accord 141 in addition to the 125 which is the general form and all of the other you know liability and property forms included so very briefly before we get into the form itself crime insurance and the crime section is going to cover things like employee theft theft of securities and money inside the premises safe burglary robbery inside the premises funds transfer fraud Computer Fraud counterfeit checks counterfeit money and lost from any like alteration or for edgy for a jury for it forgery wow that's hard to say so it's important to note a lot of times there's a couple things people think that crime insurance coverage is gonna cover things like you know data breach but that's different than computer fraud computer fraud is like in some cases you can get an endorsement on the crime section for social engineering that deal where a person gets an email asking to transfer money they think it's from an another employee in the office and they transfer money to an account that turns out to be offshore somewhere to a bad guy that's a specific example of computer fraud that you may want to check with the carrier you're writing this with to make sure that that's included or doesn't need to be specifically endorsed things that the crime section does not cover it does not cover data breach which is you know like you know person hacking in or somehow them getting access to the clients data from outside a non-employee so the reason why crime insurance is here in the first place is because in the property section which has to do with losses it it specifically excludes you from causing a loss to yourself and when your business your self is also your employees so your employees causing damage to the business is you causing damage to yourself and that's where crime comes in basically centering primarily around employee losses to the business so let's go ahead and get started as we go through this there's going to be more things that we think of and we'll address those as we go so let's go ahead and start with today's date and your agency we do it we're gonna skip the carrier and the policy number we're gonna hit go ahead and do the date here that we want the effective policy ideally you want to go two months out or three months out but just depending on the size of the account you always want to do the named insured as the entity all right we're going to use a jewelry store as an example here because when you come down to the bottom part later I just think it's a good example and I've had a lot of experience with jewelry stores okay basis for coverage discovery versus loss sustain very simple checkboxes very big ramifications in terms of coverage discovery is more broad than loss sustained my opinion is you always want to use discovery if possible might cost a little bit extra but discovery means that whenever they discover the loss this policy is going to pay for the loss if it's covered loss sustained means that they have to have the policy in effect when the loss occurred so if there was an instance of employees or you know embezzlement over a long period of time and it's really only going to cover during that time that the policy was in effect so discovery is is is a lot more coverage because it can go back farther when the loss was discovered whatever policy was in effect when the loss was discovered in fact this one would then cover the loss so I err on the side of discovery when possible now when we get down here you'll notice there's a lot of blanket or schedule if possible blanket is the most broad and easiest okay when we get way down I'm gonna scroll down here when we get down into page like gosh what is this page for by the way this one was slowly as we think there's some skipping sections here but when we get down to four it's the employees schedule this is where you list like the location the employee title limit deductible if you are test schedule coverage if you were to choose schedule that basically means that you're going to have coverage based by individual or by location so if you blanket it it's typically more common and it's just a limit for all employees in all locations in all positions so if we do a limit of let's just say a million dollars you may want to do much more than this it really depends on the business some businesses have a lot of you know assets that could be stolen or embezzled let me give you some quick stats real quick here this was from the Association of Certified Fraud exam sounds like an exciting job like insurance typically organizations lose 5% of their revenues to fraud each year another statistic is the average loss caused by an employee dishonesty at dishonesty is a hundred and forty thousand with one in every five cases reporting of loss of at least 1 million dollars so one out of five losses end up being 1 million or more dollars so a million you know you might do a lot more than that but a million is the least I would do deductible we're just gonna throw in something like what was throw in five thousand again this varies by carrier and I encourage you to talk to your underwriter pick up the phone you're your primary underwriter that that you're going to be working with it's a good idea to maybe call and find out what they do with their company because they're gonna have certain coverages and deductibles that you can work with them to make sure you're getting the best premium for your dollar very important that that's very important by the way otherwise it's amazing you put a five thousand dollar deductible not realize that you can save like twenty five percent off the premium by going to a ten thousand dollar deductible in which case you would definitely want to do for that kind of savings okay inside the premises so robbery or burglary burglary of course being forced entry into something like a safe to get money robbery being something where you're of course like you know putting a employee at gunpoint to open the safe and we're just a course gonna blanket this to whatever the the maximum dollar amount is on the on the premises okay throw another deductible on there okay on your BOP or your commercial package policy again the reason why a lot of people don't fill out the Accord 141 is because this sort of stuff is automatically covered but when you're dealing with like a jewelry store or a bank or something with a lot of cash on hand like a paycheck loan type place that's where you're gonna need the 141 to give you extra coverage that the normal bells and whistles included coverage don't include okay so money and security outside the premises let's just say fifty-thousand outside and I'll do a deductible here again a five I'm just keeping the deductible the same this varies widely bike bike carrier okay and then other properties we'll just do another hundred thousand whoops okay with the deductible five thousand and again anytime I get the chance on any other properties I want to say you know blanket whenever I can okay ERISA oh boy this is a whole conversation so basically ERISA is if the business has employees and they have any sort of a like a retirement plan like 401 K or something like that and what this is actually doing this is why it always stumbled me a little bit this is actually looking more for like a bond okay so bonds different than insurance but in some cases in order to comply with the ERISA Act which has to do with the government Act where a business needs to be covered in the event that they mess up the funds of their employees you'd want to put down an aggregate limit here that is at least ten percent of the plan amount the total plan a mental so however many however much they have in terms of you know retirement funds and that that they deal with therefore their employees you'll want to put that as at least ten percent so in this case I'm just gonna say let's say that they've got like I don't know we'll just do like three hundred thousand it depends on the business again three percent or ten percent of the plan amount and then the total total asset value in that case we'd put like three million check my math there but I think I'm right okay per plan you would put in here I'm just throwing numbers out here sorry guys this obviously can vary widely based off of the plans in the person but these are like three extremely wealthy people with big plans okay employee theft okay so government government is gonna be an additional limit here so government crime you would you would include this if it was in the government in entity so we're going to leave that blank in this particular example but you would need to include that if it was a government entity forgery or alteration um we're just gonna throw a limit in here of like 25,000 well actually that can actually rack up I want to put 50,000 amazing how people can sometimes slow the slow play these like check that check frauds over time and then theft of money in securities we're gonna blanket that inside let's say that they have you know this 500 thousand I'm using big numbers here but let's just say they've got five thousand dollars of money in securities five hundred thousand on premises all right Computer Fraud we're gonna put down again we'll just keep our five hundred funds transfer fraud again here's where you want to make sure that your carrier doesn't have a sweet little exclusion where the if the you know principal or partner owner acts in conjunction or approves the fun transfer that it's not covered because that of course kills that whole you know phishing attack that a lot of people are doing with social engineering I mentioned before so make sure that either you can endorse that on where that would be covered or make sure and explain that to the insured if that isn't covered in terms of funds transferring with a fake email money orders and counterfeit papers just put on say fifty thousand and I'm just keeping the deductible simple okay if there's any specific endorsements or something you can list that in the blank section here and then of course any other coverage endorsements can also be added here if you if you want to so you can add in coverage there or if it's a specific endorsement you know you can put there all right so ERISA employment theft so this is again coming into the retirement funds let's just say it's a 401k USA and then you're just gonna put the address of whatever the business is here that's a fake address by the way a number of Trustees employees handling the plan assets we're gonna say it's those three super-rich people number of plan participants well let's just say that there's like 30 people under them magic number two days three explain all us responses okay so we do not have by the way whenever you see something that says explain all yes responses you know that yes means subject to more underwriting questions so our volunteers use know our employees least two others know all right I'm just going to fly through these unless there's any that jump out or any employees okay all right warehouse receipts okay okay that's interesting transfer any funds by a phone or fax I'm gonna want to have some safeguards on the phone machine or a fax machine all right if those were yes just explained in the notes here why all right so now we're getting down to this awesome section whoa okay locations and employees so let's just say that we've got a whole place full of cashiers and assistants now you would obviously go through here and like list out who and what not sort of thing we're gonna say that there's three offices we're gonna say that there's 30 other employees which is the cashiers and let's see here we're gonna say that there's no we're gonna say that there's no like guards or anything okay I think we're good there all right just checking to make sure not skip anything important all right okay again I'm only answering what we need to get a quote that's the over Oh underlying theme of all my videos here because I'm just interested in getting a quote from carriers that that we can then bind coverage on okay so all of these if possible you want to answer yes obviously if it's not yes you'll need to answer no however you're not gonna get the best rate if the answer is no all right audit is performed by let's just say a CPA and it is most caps lock is on I'm also a CPA firm and all right whatever okie-doke cool that's all the rest of that they'd have last audits let's just say it was six months or so ago oh man inventories Oh every jewelry store loves inventories and they're always 3f not Valentine's Day oh not during wedding season they just got done cool audit frequency we'll just say that is semiannual is rendered to the partners well this was in a corporation will say owner a financial format is an audit okay all right all that hopefully makes sense if it doesn't shoot me a comment I'm always answering comments are all locations audited well of course they are why wouldn't they be yes we're using general accepted accounting standards or GAAP if someone just says GAAP standards that's GE GAA wait a minute I'm not sure I could be wrong I'm not an accountant we're in just but this is typically always done with generally accepted auditing standards oh I'm thinking accounting sorry about that guys but it usually is yes okay let's see here we're in discrepancies or loose practices hopefully that is a no that's a big no hopefully does the audit include the inventory sometimes it does sometimes it doesn't in this case I'm gonna put no and it is because we're gonna they do a separate inventory okay yes we check references yes we look for ghost employees employees that are like still have logins and stuff like that but that are no longer employed yes we of course audit our payroll yes we do a physical inventory and we do that annually all right ooh I like this one yes we make sure that we have people audit that don't have custody and control of stuff to steal things it's a checks and balance thing you don't want people that can write checks be able to cash checks for example in another example okay yes we have order required all right wait our bank account rates up something not often I'm gonna read this one carefully our bank accounts reconciled by someone not authorized that should be a yes people that should be a yes you don't want people to say that the bank account is correct if that person can also deposit or withdraw money that's a checks and balance system you want a third like another person that's that doesn't have power to be able to double check that stuff that's awesome make sure you know that one can our signature checks required that should be a yes and a lot of times that's an agency principle and I'm just rockin the caps lock because time is money well securities be subject to joint control oh gosh no okay actually yes sorry that should be a yes right oh that's it this is a great one this is probably going to be no but our officers required taking no vacations at least five consecutive business days if you put yes that will give you a better rate sometimes rarely eligibility but that's because that way another person that's in the office can double check you know to make sure that they don't have anything funny going on because if they're gone longer than five days stuff can get caught there should be a written policy for EF T's the largest single amount that can be transferred let's say is a hundred thousand dollars okay all right should be yes yes frequency of deposits we'll just say as daily or detailed records of yes detailed yes okay all right man we are flying money in securities into the exposures for each category okay so okay there are so inside are like the cashiers the Potenza retail people that's how much money we have inside of the property so let's say money we have five hundred thousand dollars of money inside of the building okay and we could have checks for deposit we could say well technically up above I put five hundred thousand as the total so I'm gonna I'm in this case I'm gonna say like three hundred thousand of money one hundred thousand of checks to deposit whoops one hundred thousand of checks for accounts payable money overnight I'm gonna just put if I can put zero I'm gonna put zero but I might put five thousand gosh I want to put zero if I can I hate have but I don't want to expose my insured so he's gonna put some incidental but that's a tough one some carriers are gonna require that to be zero just so you know or 10 percent 10 presents another dollar percentage sometimes that they're gonna require there so you might want to check with your carrier that you're writing this with to see again this could be a big premium factor of what you want to put their payroll checks I'm just gonna put like you know six thousand you're gonna keep a bunch of payroll checks hopefully okay that might be sixty in some cases security in bank safe deposits sorry and I apologize I'm going back and forth on here I've got two jewelry stores in my mind that I keep bouncing back and forth on one of them's a big one one of them's a little one so so it really depends on the business okay so securities in the bank and the safe deposit box let's just say fifty thousand okay all right purchasing and receiving controls are Duty segregated in some cases in a retail store they are not however if you put yes that's great yes that should be a department should be supervised by someone not authorized to pay bills I'm gonna just kind of fly through these and answer them the way that's best if I can however a lot of times these are gonna be know if it's like a smaller operation okay that last one of course should always be yes okay all right again this isn't I was in an office for a long time where this didn't occur until we put a lock on the door so again it just depends okay here is where you're going to just kind of list out the description of property now you felt you filled this out for a while you're in pain you know there's it's just painful filling out this stuff but here is a you gotta you gotta spend some time on this section okay you gotta paint a picture just like the Accord 125 or we describe the business you've got a paint a picture on this property section make them feel super comfortable okay so we're gonna say like you know you know jewelry on average of $5,000 per item in locked safe blah blah blah or we could put something like you know like you know 50 percent of jewelry on average the key here is describe describe what it looks like describe what sort of property they have describe where the money is the maximum value just just really going through here and giving them a picture because it makes a big difference if you think about it like if they have jewelry that's over five thousand dollars in the amount of like a hundred thousand and then they have jewelry that's valued at $100 or less in the amount of four hundred thousand you know this is like a trinket shop this is like a pan like one of those little like you know earring stores but if it's one of those like you've got like all your jewelry isn't is in you know excess of five thousand per item now you've got like a nicer store or 30,000 per item you know you could have a really high-end store so describing the property and listing the maximum value described well here okay this will get you the sale with the underwriter okay miscellaneous and business hours this is pretty self-explanatory I used like a ton of employees like up above so it's cool all right we stamp all the checks for deposit only that way that means that an employee can't go to the bank and cash them okay that's important make sure your businesses are practicing that we frequency of deposit is daily once per day so it's good to specify oops daily once daily sorry okay night depository this is whether or not they used some sort of night depository at the bank I'm gonna say no in my example they didn't annual gross sales for the last year okay let's say that was like 10 million huge operation I hope with that kind of an operation that they have deadbolts and any other information you might add but there's a lot more down here congratulations you're filling out the crime app hope everyone's happy with their choice in career filling out crime apps manufacturer let's just say okay so we're talking about the safe here we're gonna say this is a Rowland safe we're gonna say most of them are all ul and the fire class now the fire class or I should say break break in class or whatever they call protection class that's it of the safe is gonna be on the inside of the door so when you open up the door the safe it's gonna be right there when I'm in these places I just take a little picture of those there's no way I'm gonna remember them it'll say stuff like T L 30 which means that with like a super sophisticated torch it takes like 30 minutes to break in that's what that means so that you're looking for stuff like this on the inside of that door it's a square door it's got an outside combination lock actually sorry the combination lock is inner by the way you can find all this information again on the door or with a Google search based on the safe okay but all that's gonna be important so oh geez on the top of my head I can't remember like the thickness of the walls and stuff so I'm apologizing for this but we're just gonna say an inch on that thickness if you don't know this leave it blank this one's okay to leave blank okay fact I'm gonna leave it blanks I don't know always better to just leave a blank if you don't know and that's something where I've been able to get quotes without having that information I do need this stuff though like not necessarily the combination locks but this part here especially the class okay messenger who takes things where so if they're taking them like the bank for example when they say messenger they mean person walking around with with money or goods okay so messenger number one and then of course there's messenger number two we're just gonna say messenger number one has zero guards zero armored vehicles he takes his own car that's considered a private conveyance if he took like a uber or taxi that'd be public okay so he takes his own car he has a safety satchel a lot of times is a red bag with a lock on it so that's a safety satchel that's how that's answered easy enough there was more messengers or people walking around with goods you'd pop the second one in there premises information in jewelry stores there's a lot of times a holdup alarm a premises alarm holdup alarms the button you push that makes noise or signals the police hopefully it doesn't make noise that's a good reason for people to get attacked so holdup alarms should typically only ever signal the actual Central Station which is the alarm company okay Central Station is the alarm company local gong is a loud dinging or sounding siren I like to advise people not to have those because that's again a good way to get attacked so the holdup alarm can be a button that silent signals the alarm company in some cases it might signal the police department okay just depends on the alarm and then in the event that we have a safe there should be a safe alarm okay so again the grade of the alarm this is all going to be answered by the alarm company so we're just gonna say it's serviced by like ADT and there's gonna be address information here contact info here there are zero guards zero watch persons okay if there was any information you just fill that out there and we've just got one premises and the safe in the vault are complete content protected that means that they have like a contact they've got a contact alarm and like a motion sensor alarm on them as well okay that's the complete partial might just be one or the other okie-doke certificate number again that is going to be on the safe or on the alarm okay and whenever that certificate expires all right accessible openings all right all right see I'm going with this stuff the more pet of a beautiful picture I can paint the better and now we don't have to complete this if we blanketed the coverage if we scheduled the coverage which can save a little bit of premium but it also means that this can get outdated so you're going to need to review it every year with the owner so I usually like to blanket stuff but if you do schedule it this is where you'd fill all that out by employee by title in terms of coverage if there are additional locations you list them here and by the way if you love to complete the Accord 1:41 you just get ready because you can complete it for each location okay and then if there are any additional remarks like man this is a long-form save that for Accord but this is where you could also put other things things that can help sell the policy again we're always trying to sell the company first then the customer so that is the Accord 141 and you know I'm going to come out with more of these videos so subscribe to my channel leave me comments if you'd like a copy of the filled out version of this or any highlighted templates that I can send over to you I'll do that as well and feel free to drop me a comment if there's any other videos you'd like to see I'm also going to be using some agency best practice videos here in the future but hopefully this helped you understand crime coverage as well as how to complete the forms have a great week