CR 04 11–GUESTS’
PROPERTY
(February 2026)
This endorsement is
designed for hotels, motels, and other lodging facilities. It covers the named
insured’s legal liability for loss of or damage to guests’ property held in
safe deposit boxes or inside the facility’s premises.
This analysis is of the
06 22 edition with changes 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 provides fields for two separate coverages. One or both may be
selected.
There are fields to
input the Premises Address, Limit of Insurance per Occurrence, and Deductible
Amount per Occurrence.
There are fields to
enter the Premises Address, Limit of Insurance per Guest, 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 following are added
to Insuring Agreement A.–Fidelity:
This coverage covers loss or damage to
guests’ property stored inside a safe deposit box on the insured’s premises.
The insured must be legally liable for the loss or damage.
|
Example: A guest on vacation deposits cash and
traveler’s checks into the named insured’s safe deposit box. When they try to
retrieve them, the box is found empty. This loss is covered. |
This coverage covers loss or damage to
guests’ property inside the insured’s premises or in their possession. The
insured must be legally liable for the loss or damage.
|
Examples:
|
The named insured can be sued if they
refuse to cover loss or damage to guests’ property. If the insured has the
insurance company’s written approval to defend, the company will cover
reasonable defense expenses incurred and paid by the insured. These payments
are in addition to the coverage limit.
|
Example: The maid forgets to lock a guest’s
hotel room door after cleaning. The guest finds the door unlocked and reports
that a laptop, phone, and jewelry worth thousands of dollars were stolen. The
hotel declines the claim, citing lack of proof of the loss. The guest files a
lawsuit. Before denying the claim, the hotel informed its insurance company
of its suspicions and obtained permission to defend, leading the insurance to
cover the hotel's defense expenses. |
This insuring agreement
uses a schedule to list the limits instead of entering them on the Declarations.
Each part of the Insuring Agreement has its own separate limit.
Coverage has a limit
for each occurrence at each address listed on the schedule.
Coverage has a per-guest limit subject
to the premises per-occurrence limit listed on the schedule.
|
Example: A gang of thieves targets the Villa
Hotel. They steal hotel property, remove $100,000 worth of guests’ belongings
from safe deposit boxes, and steal $100,000 from two guests. The hotel’s
policy caps liability at $100,000 per incident for guest property in safe
deposit boxes. This loss is fully covered. The coverage limit for guests' property
inside the premises is $10,000 per guest and $100,000 per occurrence. The
hotel receives $10,000 per guest for losses inside the premises, totaling
$20,000. Since the per-guest limit is $10,000, even with a $100,000 limit per
occurrence, the hotel has a total uncovered loss of $80,000. |
Payment is only made if the loss exceeds
the deductible amount per occurrence shown on the schedule. Even in that case,
the payout will not exceed the insurance limit per occurrence specified on the
endorsement schedule.
This insuring agreement
does not cover Acts Committed By Your Employees, ERISA Plan Officials, Managers, Directors, Trustees, or
Representatives, or Legal Fees, Costs, and Expenses.
Eight exclusions are
added by this endorsement as follows:
Loss that results from
liability the insured assumes under any written agreement is excluded.
However, this exclusion does not apply to written
agreements made with a guest before any loss or damage occurs, if the amount
does not exceed $1,000 or a lesser amount for which you could be liable under
any law.
|
Example: A local law states that hotels are
liable for guest property losses up to $5,000. The insured’s contract with
guests states liability up to $6,000, so coverage applies since the
difference is not more than $1,000. However, if the contract states liability
up to $10,000, then coverage is limited to the $5,000 statutory limit. |
Loss or damage to
property from any fire.
Loss of or damage to
property caused by spilled, upset, or leaking liquids or food. This exclusion
is applicable only to Guests’ Property inside the premises.
Loss of or damage to
property from wear and tear, inherent vice, deterioration, insects, or animals.
Loss of or damage to
property in the insured’s care and custody for cleaning or laundering. This
exclusion applies only to Guests’ Property–Inside the Premises.
Loss occurring when the
named insured releases an organization or person from legal liability.
Loss of or damage to
articles or samples carried or held for sale or delivery after they are sold.
This exclusion applies only to Guests’ Property–Inside the Premises.
Loss of or damage to
any vehicle, including accessories, equipment, and property inside it. This
exclusion applies only to Guests’ Property–Inside the Premises.
The Records Condition
in the Coverage Form or Policy does not apply to these insuring agreements.
The following condition
completely replaces the Ownership of Property: Interests Covered Condition in
the Coverage Form or Policy.
The insuring agreements
cover property belonging to the named insured’s guests. Coverage applies only
when the property is in a safe deposit box, inside the premises, or in the
insured’s possession.
This insurance benefits
only the named insured. It grants no benefits or rights to other organizations
or individuals, including guests. Any claims for covered losses must be
submitted by the named insured to the insurance company.
NOTE: This coverage is first-party and
benefits the named insured. It does not include third-party liability. Only the
named insured, who must meet all conditions of the coverage form or policy, can
submit the claim.
This additional
condition specifies that the insurance company is not relieved of its
obligations under these insuring agreements even if the named insured or its
estate becomes insolvent or bankrupt.
The following
definition is added to F. Definitions in the Coverage Form or Policy.
This is money,
securities, and other property that belongs to the insured’s guests.
The following
definition replaces the same definition in F. Definitions in the Coverage Form
or Policy.
The part of the building's interior
located at the address specified on the endorsement schedule, which the named
insured uses for its operations.