What it does
CP 12 11 adds a condition to the Commercial Property Conditions. The insured must:
- Keep the safeguards listed in the Schedule (those under its control) in complete working order.
- Actively engage any listed automatic burglary alarm or other automatic system and keep it "on" during all non-work hours and whenever the premises are unoccupied, plus any other engagement requirements shown in the Schedule.
- Notify the insurer of any known suspension or impairment.
Notice of an alarm outage is not needed if protection is restored within 48 hours and a watchperson or other surveillance is provided. The endorsement adds a Special form exclusion: no coverage for theft if, before the theft, the insured failed to comply with the condition.
Safeguard symbols
- BR-1: automatic burglary alarm protecting the entire building, signaling to an outside central station or police station.
- BR-2: automatic burglary alarm protecting the entire building with a loud outside gong or siren.
- BR-3: security service with a recording system or watch clock, making hourly rounds of the entire building when not in operation.
- BR-4: a safeguard described in the Schedule.
Quoting and selling notes
- Theft claims are commonly denied because the alarm was not set or the monitoring contract had lapsed. Review the listed systems with the client and tell employees to arm the alarm every night.
- Make sure the application describes the alarm correctly, for example central station versus local only.
- The fire-protection version is CP 04 11.
