Protective Safeguard Endorsement

5October,2016
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What is it?  What does it mean?

This is an endorsement that is attached to a property insurance policy and can exclude coverage in certain scenarios.  If any of your insurance policies have this endorsement or a combination of the following types of protective safeguards, contact your insurance agent for more information and ask if it can be removed from your insurance policy.

If you fail to adequately maintain any of the protective safeguards at your commercial buildings or manufacturing facilities and you suffer a loss caused by fire, coverage for the fire loss can be denied by your insurance company.  Additionally, if you knowingly turn off or suspend any of the safeguards, even if it is for routine maintenance and the insurance company is not notified of the suspension and a loss occurs during the suspension, coverage can be denied.

Because of the potential coverage gaps that can be created by this endorsement it’s very important for you to know if it’s attached to your policy and if it can be removed.  Communication with your insurance agent is critical when it comes to minimizing your risk.

These are types of Protective Safeguards that could be in the endorsement:

  • Automatic sprinkler system
  • Automatic fire alarm
  • Security service
  • Service contract
  • Automatic commercial cooking exhaust and extinguishing system
  • Any other protective system described in the Schedule