CR 04 09–LESSEES OF
SAFE DEPOSIT BOXES
(February
2026)
Businesses that
frequently keep securities or other property in safe deposit boxes can utilize
this endorsement. However, it’s important to point out that it does not cover
money stored inside the safe deposit boxes.
This analysis is of the
06 22 edition. Material changes are bolded, but format changes that do not
affect coverage are not highlighted.
This endorsement can be
added to the Insurance Services Office (ISO) Commercial Crime Coverage Form or
Policy.
The endorsement
schedule includes fields for the depository's name and address. It also has
spaces to specify the insurance limit per occurrence and the deductible amount
per occurrence for one or both coverages offered by the two insuring
agreements: A.1. Fidelity and/or A.2. Forgery or Alteration.
This is an endorsement
to the ISO Commercial Crime Coverage Forms and Policies and is subject to their
conditions, definitions, and exclusions. The only changes are those within this
endorsement.
Section A. Insuring
Agreements of the policy or coverage form now include the following:
·
Securities
are covered for loss or damage from theft, disappearance, or destruction while
in a vault safe deposit box inside the depository’s premises.
·
Since
securities might be removed and deposited from time to time, coverage also
applies for theft, disappearance, or destruction when they are temporarily
outside the safe deposit box to remove or deposit them. However, coverage ends
if the securities or safety deposit box leaves the depository premises.
Since other property
may be removed and/or deposited periodically, coverage also applies to
burglary, robbery, or vandalism when the property is temporarily outside the
deposit box for removal or deposit. However, coverage terminates if the other
property or safety deposit box leaves the depository premises.
NOTE: There is no coverage
for money. In addition, coverage applies only at the named depository and at
the locations listed on the endorsement schedule.
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Example: The Greco Restaurant’s large safe
deposit box contains securities valued at $50,000, restaurant memorabilia
worth $50,000, and $5,000 in cash. When the owner visits the depository to
check the contents, they find it empty. There are no visible signs of forced
entry on or about the box or vault. The insurance covers the stolen
securities, but the memorabilia is not covered due to lack of forced entry
evidence. The cash is also not covered, as this endorsement excludes money. |
The Limit of Insurance is
the amount listed on the Endorsement Schedule for the Limit of Insurance Per
Occurrence.
The loss amount must exceed the deductible indicated on the Deductible Amount Per Occurrence before any payment will be made.
This exclusion is revised to clarify
that the depository is not regarded as the authorized representative of the
named insured. As a result, coverage will now apply if the depository is
responsible for causing the loss.
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Example: Karina and Karina Medical Partnership
has a safe deposit box at Mutual Bonding Trust Depository. A Mutual employee
coordinates with outside individuals to access safe deposit boxes, including
those of Karina and Karina. Coverage applies because the partnership’s policy
includes CR 04 09, listing Mutual and its location address, and the
depository is not considered Karina and Karina’s authorized representative. |
Coverage does not apply
to the following:
Loss incurred from
surrendering or transferring property in any purchase or exchange.
Other property is not
covered for any loss or damage that results from fire.
Loss of or damage to
property owned or held as collateral by the depository or held in trust by the
depository for more than 30 days.
Loss incurred by the
insured or anyone acting on their authority due to fraud or dishonesty,
leading to the voluntary surrender of title or possession of property.
NOTE: The exclusion for
Transfer or Surrender of Property has been eliminated due to the 06 22 edition,
which added an exclusion for Kidnap, Ransom, Extortion, and Other Unlawful Demands.
Three definitions are
added to F. Definitions in the Coverage Form or Policy.
Taking property from
within a locked safe deposit box located inside a vault on the depository’s
premises, carried out by someone who unlawfully enters both the box and the
vault. Visible signs of forced entry must be present on the exterior of the box
and vault as proof of illegal entry.
This is a depository named and listed
with a corresponding location on the endorsement schedule. Coverage only
applies to the names and locations listed on the schedule, even if the insured
has additional safe deposit boxes at different depositories during the policy
period.
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Example:
Karina and Karina are
unhappy with Acme Bank, the depository listed on CR 04 09’s schedule. On
Friday, May 1, they transfer all their accounts and remove everything from
their Acme safe deposit box. They then move all their belongings to Union
Deposit and Savings Bank and store them there in a safe deposit box. After a
long day, they decide to wait until Monday to contact their agent with the
new depository information. On May 2, Union Deposit was
burglarized, and the thieves stole everything from their safe deposit box.
Unfortunately, this loss is not covered because Karina and Karina did not
update the depository information on the endorsement schedule. |
This is the interior area of the
depository or safe depository affiliate. If the depository is located in a
multi-tenant building, coverage terminates when items leave the depository
premises and enter shared spaces like hallways or staircases.
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Example: Securities
stored in Karina and Karina’s safe deposit box are removed and taken to the
brokerage office located in the suite next to the depository. A thief grabs
the messenger’s briefcase as he exits the depository premises. CR 04 09 does
not cover this loss because it happened outside the depository premises, even
though it was within an interior hallway of the same building. |