What is a protective safeguards clause?

In commercial property insurance, there may be a clause in your policy requiring the maintenance of protective safeguards (sprinkler system, fire alarm, security alarm, etc.). This means:

• The insurance company has the right to deny coverage should a loss occur as a direct result of improper maintenance.
• Insurance will be suspended if the insured fails to give immediate notice to the insurer when they know about any impairment in described safeguards.

When insurance policies contain provisions requiring the maintenance of protective safeguards, it’s vital to This e-mail address is being protected from spambots. You need JavaScript enabled to view it   or your insurance company right away if the system will be disabled for any length of time for system inspection or maintenance.

Example:  

A business owner states on the insurance application that there is a fire sprinkler system. Because the building has this system, the owner is rewarded with a discount on the policy. At some point in time, the sprinkler system breaks down but the owner doesn’t have the money to make repairs. The owner forgets to tell his agent or insurance company that the fire sprinkler system is down. A few months later, a fire causes $250,000 in damages to the building and its contents. The fire marshal discovers the sprinklers were not working and the insurance company denies the claim.  

The protective safeguards to which the provisions apply may include—but are not limited to:

• automatic sprinkler system
• automatic fire alarm
• security service
• automatic burglar alarms
• video/surveillance cameras
• any other described protective system

We can provide professional service to you by checking on the maintenance of protective safeguards. By maintaining these systems, you can avert coverage problems, including denial of coverage in the event of a loss. This e-mail address is being protected from spambots. You need JavaScript enabled to view it   for more information.