April 18, 2016

We are working on a commercial claim insured under a BP 00 03 with a protective safeguards endorsement, BP 04 30. The endorsement and Dec page are clear, and there are no questions about that per se, but the question is whether a failure to abide by one or more of the required safeguards would preclude damage from a cause of loss not related to anything to do with the safeguards? For instance, water leaking in from the roof damaging the ceiling would not necessarily have anything to do with the fire suppression or burglar alarm, so would coverage be declined for the water damage because one or more of the safeguards was not in place?

Virginia Subscriber

The BP 04 30 endorsement states only that fire losses would be excluded if the insured knows of any suspension or impairment of the required protective safeguard, or if the insured failed to maintain the protective safeguard. So therefore, other losses not specified in the endorsement would not be excluded if the protective safeguard was not maintained.

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