1. Forms
2. CR
3. CR-04-09

What the form is

The CR 04 09 Lessees of Safe Deposit Boxes endorsement is designed to be added to an ISO Commercial Crime Coverage Form or Policy. Its purpose is to provide coverage for the insured's property that is stored within a safe deposit box or vault located inside a designated depository premises (e.g., a bank). Specifically, it covers two types of property:

• Securities: Covered for loss or damage resulting from theft, disappearance, or destruction. Coverage applies while the securities are in the safe deposit box and also temporarily when they are outside the box but still within the depository premises for the purpose of deposit or removal.
• Other Property (Not Money): Covered for loss or damage resulting from actual or attempted robbery, burglary, or vandalism. Similar to securities, coverage extends to periods when this property is temporarily outside the safe deposit box but within the depository premises for deposit or removal. Importantly, this endorsement explicitly does not cover money stored in the safe deposit box.

Classes of business it applies to

This endorsement is suitable for any business or organization that regularly stores valuable securities or other important property (excluding cash) in safe deposit boxes at a financial institution or other depository. Real-world examples include:

• Businesses holding stock certificates, bonds, or other negotiable instruments.
• Companies needing to secure important legal documents, contracts, or proprietary information (if considered 'other property' and not excluded).
• Organizations that store valuable items (other than money) that are critical to their operations or have significant worth, such as rare documents or specific types of valuable materials, provided they fall under the definition of 'other property'.
• Automotive operations that use safety deposit boxes, particularly for securities.

Special considerations

• No Coverage for Money: It is crucial to understand and communicate that this endorsement provides no coverage for loss of money stored in the safe deposit box.
• Definition of Burglary: For 'other property' to be covered in the event of a burglary, the definition typically requires visible marks of forced entry on the exterior of the safe deposit box and the vault.
• Scheduled Depository: The endorsement requires the specific name and address of the depository premises where the safe deposit box is located to be listed in the schedule.
• Temporary Removal: Coverage for both securities and other property extends to when they are temporarily out of the safe deposit box for deposit or removal, as long as they remain within the depository premises. Coverage ceases if the items leave the depository premises.
• Exclusions: The 06 22 edition of this endorsement removes the "Transfer or Surrender of Property" exclusion, deferring to the new "Kidnap, Ransom, Extortion and other Unlawful Demands Exclusion" found in the base crime form or policy. Loss or damage to property given away due to unauthorized instructions or threats may be excluded. Loss or damage to 'other property' resulting from a fire is also an exclusion.
• Depository Not an Agent: The form specifies that the depository is not considered an authorized representative of the insured.

Key information for agents and underwriters

• Risk Assessment: Evaluate the nature and value of the property being stored. Confirm with the insured that money is not covered under this endorsement.
• Depository Security: While not directly insuring the depository, the security measures of the institution (e.g., vault security, access controls) are an implicit part of the risk.
• Accurate Scheduling: Ensure the depository name and address are precisely listed in the endorsement schedule.
• Limits and Deductibles: The endorsement schedule allows for separate limits of insurance and deductibles to be applied per occurrence for securities and for other property. These should be set appropriately based on the values at risk.
• Clarify Coverage Triggers: Explain the specific perils covered for each type of property (theft, disappearance, or destruction for securities; robbery, burglary, or vandalism for other property). Emphasize the forced entry requirement for burglary of 'other property'.
• Base Policy Interaction: This endorsement modifies the underlying Commercial Crime Coverage Form or Policy. All other terms, conditions, and exclusions of that policy apply unless specifically modified by this endorsement.