CR 04 12–SAFE
DEPOSITORY
(February 2026)
This endorsement is
intended for businesses providing safe deposit box services to their customers.
It is not available to financial institutions.
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 comprises designated fields for entering details related to the
following two coverages. Completion of the information is required for the
coverage to be effective.
There are fields to
input the Premises Address, Limit of Insurance per Occurrence, and Deductible
Amount per Occurrence.
There are fields to
input 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.
Section A. Insuring
Agreements of the policy or coverage form now include the following:
This coverage pays for
loss of or damage to customers’ property but only if the insured is legally
liable.
Coverage is limited to when
the property is in any of the following:
a. A safe deposit box located within a vault on the premises.
b. Stored within the vault located
inside the premises.
c. Outside the safe deposit box or vault, but still within the
premises. This applies only temporarily while items are being placed into or
removed from the safe deposit box or vault.
The insured might face legal action for
refusing to pay for loss of or damage to customers’ property. If the insured
has the insurance company’s written approval to defend the case, the insurer
will cover reasonable defense expenses. These expenses are paid in addition to
the limit of insurance indicated on the schedule.
|
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. |
This coverage covers
loss of or damage to customers’ property caused directly by attempted or actual
burglary or robbery, including damage or destruction. It applies regardless of
the insured’s legal liability.
a. Coverage applies only
when the property is in any of the following:
·
A
safe deposit box located within a vault inside the premises.
·
Stored within the vault located inside the premises.
·
Outside
the safe deposit box or vault, but still within the premises. This applies only
temporarily while items are being placed into or removed from the safe deposit
box or vault.
b. Coverage also includes loss caused by damage to the
premises or its exterior due to an attempted or actual burglary or robbery.
This coverage only applies if the named insured owns the premises or is
responsible for any damage to the premises.
c. Loss of or damage to
locked safe deposit boxes, safes, or vaults inside the premises is also covered
if caused by an attempted or actual burglary or robbery.
|
Example: Burglars break down the insured’s door,
blast open the vault, and steal customers’ property. Coverage applies to damage
to the door, the vault, and the stolen customer property. |
A per occurrence limit
and deductible should be specified for the chosen coverage, whether it is Loss
of Customers’ Property - In Safe Deposit Boxes, Robbery or Burglary of
Customers' Property – Premises Damage, or both.
The insurance company
does not pay until the loss exceeds the deductible amount on the endorsement
schedule. Once the loss exceeds the deductible, payments are made until the
limit is reached or the loss is satisfied, whichever comes first.
Acts Committed by Your
Employees, ERISA Plan Officials, Managers, Directors, Trustees, or
Representatives, and Legal Fees, Costs, and Expenses do not apply to Loss of
Customers’ Property–In Safe Deposit Boxes.
Three exclusions are
added.
This exclusion
specifically applies to Loss of Customers’ Property–In Safe Deposit Boxes.
It applies when loss occurs from the named insured assuming liability through a
written agreement.
This exclusion
specifically applies to Robbery or Burglary of Customers’ Property–Premises
Damage. It excludes loss of or damage to property caused by fire. However, loss
or damage by fire to safe deposit boxes, safes, or vaults is covered.
This exclusion specifically
applies to Robbery or Burglary of Customers’ Property–Premises Damage. It
excludes loss of or damage to property resulting from wear and tear, inherent
vice, gradual deterioration, insects, or animals.
The Records Condition
stipulated in the Coverage Form or Policy is not applicable to this insuring
agreement.
The following condition
completely replaces the Ownership of Property: Interests Covered Condition in
the Coverage Form or Policy:
The insuring agreement
covers property belonging to the named insured’s customers. Coverage applies
only if the property is in a safe deposit box, on the premises, or in the
insured’s possession.
This insurance is
exclusively for the benefit of the insured and does not provide benefits or
rights to any other entities or individuals, including the insured’s customers.
Claims for covered losses under these insuring agreements must be submitted by
the named insured.
NOTE: This coverage
is for the benefit of the named insured as a first-party coverage. It is not
third-party liability coverage. Only the named insured, who must meet all
conditions specified in the coverage form or policy, can file a claim.
This additional
condition states that the insurance company is not relieved of its obligations
under the insuring agreements even if the named
insured or its estate becomes insolvent or bankrupt.
The following
definitions are added to F. Definitions in the Coverage Form or Policy.
The meaning of burglary
depends on the location of the items. If the items are within a locked safe
deposit box inside a locked vault, it refers to property taken by someone who
unlawfully enters both the box and the vault. No evidence of forcible entry is
necessary.
If the items are not in
a safe deposit box but stored inside a locked vault, it means property taken by
someone unlawfully entering the vault. There must be evidence of forcible entry
on the outside of the vault.
Customers’ property has
two meanings: