Reviewed March 11, 2013

A Discussion

 Summary: Sprinkler leakage insurance, well described by its title, covers loss resulting from direct damage to insured property caused by leakage or discharge of any substance from an automatic sprinkler system, including collapse of a tank that is part of the system. Coverage is provided automatically on the causes of loss forms, but it can be excluded by use of an endorsement, CP 10 56 06 07, Sprinkler Leakage Exclusion. This endorsement excludes coverage for loss or damage by sprinkler leakage to property described on the endorsement.

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