Protective Safeguards sounds like an endorsement you would want included in an insurance policy, right? Beware! This is actually an endorsement that can exclude coverage in certain scenarios. It’s important to know if this is attached to a businessowners’ insurance policy. It’s also important to know that Society does not apply this endorsement.
Learn more about Protective Safeguards in this video:
Protective Safeguards requires you to maintain protective devices and services, such as an automatic sprinkler system, automatic fire alarm, security service, service contract and other protective devices, like an automatic extinguishing system. If an incident occurs and the protective safeguard doesn’t work, coverage may be denied if you knew it didn’t work or failed to maintain the system properly.
Consider these scenarios:
- There is a fire at a sports bar from the kitchen cooking line resulting in significant damage. An investigation determines that a previously discharged fire suppression system that could have suppressed or put out the fire had never been reset by your staff. Since you failed to properly maintain the system as required by the Protective Safeguards endorsement, the claim could be denied.
- An intruder breaks into a restaurant after all the employees have left for the night, stealing cash and inventory. An investigation determines that a security alarm system was disarmed at the time of the break-in. Since your staff failed to arm the system as required by the Protective Safeguards endorsement, the claim could be denied.
Don’t let an insurance company put your business at risk with their Protective Safeguards endorsement.