Protective Safeguards requirements are extremely important components of many insurance policies. Protective Safeguards are considered warranties under an insurance policy and essentially act as a condition precedent to coverage for related loss. With Protective Safeguard requirements, the devil is in the details and the failure to comply can result in a loss being uncovered.
Some common protective safeguards required in insurance policies are fire suppression system, "Ansul" system for restaurants and cooking establishments, and burglar alarm. Many require supervisory service and central station monitoring. It is important that every policyholder know exactly what protective safeguards are required before there is a loss. However, it is possible in many situations to overcome a denial on such grounds and for that reason it is essential to consult with an attorney with specific experience with PS cases, and whose prior cases have been cited as authority throughout New York.
The typical exclusionary language for protective safeguard provisions is as follows:
The endorsement also adds the following language to the Exclusions section of the Commercial Property Conditions Form:
We will not pay for loss or damages if, prior to the loss, you:
Knew of any suspension or impairment in any protective safeguard listed in the Schedule above and failed to notify us of that fact; or
Failed to maintain any protective safeguard listed in the Schedule above, and over which you had control, in complete working order.
If part of an Automatic Sprinkler System is shut off due to breakage, leakage, freezing conditions or opening of sprinkler heads, noti cation to us will not be necessary if you can restore full protection within forty-eight hours.
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