Burglary and Robbery Protective Safeguards

Do you have a security system or service? If the answer is yes, then this article is for you. An insurer may use the Burglary and Robbery Protective Safeguards endorsement on a commercial property policy to ensure a security system or service is active and adequately maintained. If this endorsement is attached to your policy, it’s a good idea to read it carefully. The endorsement has compliance features that, if unmet, could leave you without coverage.

Requirement

Maintaining a security system or service is essential. If your business has a break-in or a robbery and the system is not in proper working order or activated, your coverage may be void.

Maintenance may include inspecting the components, changing the batteries, or testing communication with the monitoring service.

Check with your professional service provider for the proper maintenance required for your system and be sure to comply with each recommendation.

Premium Credit

The insurance company may provide a premium credit for security protection. Credit is offered because protective systems or services help deter or minimize theft losses. Losses could be more significant if no security were provided at all. A proper working system will help keep the premium credit applied.

Benefits of Maintenance

There is significant financial value in properly maintaining security protection. It can minimize operational downtime and ensure the endorsement is not used to deny coverage. Also, it helps deter criminals. Criminals seek easy targets without security or security gaps. They want to get in and out quickly, so they take the path of least resistance. A criminal is more likely to move on from your property if it is protected.

Suspension or Impairments

If there are any known impairments or a suspension in the operation of the system or service, the insurer may not cover a loss. The insurer must be notified of these conditions for coverage consideration. Failing to inform the insurer could result in the rejection of coverage if a loss occurs. However, it is unnecessary to inform the company if the system is fully restored within 48 hours or if a watch person or surveillance is put into place at the premise and as required by the policy.

Symbol Examples

One or more of these symbols will appear on the policy. Review the endorsement to determine which symbol(s) applies and the complete language of the form.

• BR-1 is for an Automatic Burglary Alarm

• BR-2 is for an Automatic Burglary Alarm

• BR-3 is for a Security Service

• BR-4 Protective Safeguard is described in the Schedule.

Contact your insurance professional to discuss coverages and what you need to know to ensure proper coverage in the event of a loss.