(July 2019)
This endorsement is designed for businesses that offer safe deposit box facilities to their customers. It is not available to financial institutions.
This analysis is of the 08 13 edition. Changes from the 08 07 edition are in bold print. It does not address changes in format that do not affect coverage.
This endorsement can be added to the Insurance Services Office (ISO) Commercial Crime Coverage Form or Policy.
The endorsement schedule has spaces to enter information for the following two coverages:
There are spaces to enter the Premises Address, Limit of Insurance per Occurrence, and Deductible Amount per Occurrence.
There are spaces to enter the Premises Address, Limit of Insurance per Occurrence, and Deductible Amount per Occurrence.
This is an endorsement to the ISO Commercial Crime Coverage Form or Policy and is subject to their conditions, definitions, and exclusions. The only changes are those within this endorsement.
The insuring agreement has two parts:
1. Loss of Customers’ Property–In Safe Deposit Boxes
This coverage pays for loss of or damage to customers’ property but only if the named insured is legally liable. Coverage is limited to when the property is in any of the following:
a. A safe deposit box that is inside a vault that is inside the premises
b. A vault that is inside the premises
c. Outside the safe deposit box or the vault but still inside the premises. This is limited to the time period when items are being placed in or removed from the safe deposit box or vault.
The named insured may be sued because it refuses to pay for loss of or damage to customers’ property. In that case, and if the named insured has the insurance company’s written consent to defend, the insurance company pays the named insured’s reasonable defense incurred expenses. The amount it pays is in addition to the limit of insurance.
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Examples: A customer deposits money and securities into a safe deposit box. These items are missing the next time the customer opens the box. This loss could be covered under Loss of Customers’ Property–In Safe Deposit Boxes. A customer sends an employee to remove items from
its safety deposit box. The employee never returns and is presumed to have
stolen the items. There is no coverage because the safe depository is not
legally liable. |
2. Robbery or Burglary of Customers’ Property–Premises Damage
a. This coverage pays for loss of or damage to customers’ property that results directly from an attempted or actual burglary or robbery damage or destruction. Coverage applies without regard to the named insured’s legal liability. Coverage applies only when the property is in any of the following:
· A safe deposit box that is inside a vault inside the premises
· A vault that is inside the premises
· Outside the safe deposit box or the vault but still inside the premises. This is limited to the time period when items are being placed in or removed from the safe deposit box or vault
b. Coverage also applies for loss due to damage to the premises or its exterior that results from an attempted or actual burglary or robbery. However, this applies only when the named insured owns the premises or when it is liable for damage to the premises.
c. Loss of or damage to locked safe deposit boxes, safes, or vaults that are inside the premises is also covered when caused by an attempted or actual burglary or robbery.
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Example: Burglars break down the insured’s door, blast open
the vault, and steal customers’ property. Coverage applies to the loss to the
door, the vault, and customers’ property that was stolen. |
A per occurrence limit and deductible must be entered for each covered location within the selected parts of the insuring agreement.
The insurance company does not pay until the amount of loss is more than the deductible amount on the endorsement schedule. Once the loss exceeds the deductible, payment is made until the limit is reached or the loss is satisfied, whichever is less.
1. The exclusion for Acts Committed by Your (was “of” in the 08 07 edition) Employees, Managers, Directors, Trustees, or Representatives and the exclusion for Legal Fees, Costs, and Expenses do not apply with respect to Loss of Customers’ Property–In Safe Deposit Boxes.
2. Three exclusions are added.
Coverage does not apply to the following:
a. Loss that results because the named insured assumed liability for it under a written agreement. This exclusion is only with respect to Loss of Customers’ Property–In Safe Deposit Boxes.
b. Loss of or damage to property that is the result of a fire. There is an exception. Coverage does apply to such damage to safe deposit boxes, safes, or vaults. This exclusion applies only to Robbery or Burglary of Customers’ Property–Premises Damage.
c. Loss of or damage to property that is the result of wear and tear, inherent vice, gradual deterioration, insects, or animals. This exclusion applies only to Robbery or Burglary of Customers’ Property–Premises Damage.
1. The Records Condition in the Coverage Form or Policy does not apply to these insuring agreements.
2. This additional condition states that the insurance company is not relieved of its obligations under these insuring agreements if the named insured or its estate becomes insolvent or bankrupt.
3. The following condition completely replaces the Ownership of Property: Interests Covered Condition in the Coverage Form or Policy:
Ownership of Property: Interests Covered
The property these insuring agreements cover is limited to property that belongs to the named insured’s guests. Coverage applies only when such property is in a safe deposit box, is inside the premises, or is in the named insured’s possession. This insurance is for only the named insured’s benefit. It does not provide any benefits or rights to any other organizations or persons, including the guests. Claims for covered losses under these insuring agreements must be submitted to the named insured. The named insured then decides whether or not to submit them to the insurance company.
Note: This coverage is first-party coverage for the named insured’s benefit. It is not third-party liability coverage. The named insured has to satisfy all conditions in the coverage form or policy and is the only party that can present the claim.
The following definitions are added to F. Definitions in the Coverage Form or Policy.
1. Burglary
The meaning of burglary depends on where the items are located. If they are inside a locked safe deposit box that is within a locked vault, it means property removed by a person who unlawfully enters the box and the vault. There is no requirement for evidence of forcible entry.
If the items are not in a safe deposit box but are inside a locked vault, it means property removed by a person who unlawfully enters the vault. There is a requirement that there must be marks of forcible entry on the outside of the vault.
2. Customers’ property
Customers’ property has two meanings: