Protective Safeguards Endorsements

As part of our ongoing commitment to ensure clarity and transparency in our underwriting practices, it is important for our agents and insureds to understand the Protective Safeguards Endorsements which are sometimes added to our AgriBusiness insurance policies.

What are the Protective Safeguards Endorsements?

The Protective Safeguards Endorsements add a condition to the policy requiring the insured to maintain specific protective devices or services—such as automatic sprinkler systems, fire alarms, security services, or other loss prevention measures—as a condition of coverage. The Protective Safeguards Endorsements may result in a premium credit for the insured. Great American AgriBusiness® offers two Protective Safeguards Endorsements:

• Burglary and Robbery Protective Safeguards (AP 8749): This endorsement is oriented to devices that an insured maintains that are designed to limit the peril of theft. Failure to maintain the systems may negate the peril as a covered cause of loss.
• Protective Safeguards (AP 8752): This endorsement is oriented to devices that the insured maintains that are designed to limit the peril of fire. Failure to maintain the systems may negate the peril as a covered cause of loss.

Why are the Protective Safeguards Endorsements Important?

The endorsements serve two key purposes:

1. Risk Mitigation: They encourage insureds to maintain critical safety systems that reduce the likelihood or severity of a loss.
2. Coverage Clarity: They clearly outline the insurer’s expectations and the insured’s responsibilities regarding protective safeguards.

Key Points Agents Should Communicate to Insureds:

• Compliance is Mandatory: If the insured fails to maintain the listed safeguards/devices or does not notify us of any impairment, coverage for certain types of losses may be denied.
• Notification is Critical: If a protective system is temporarily out of service (e.g., a sprinkler system is shut down for repairs), the insured must notify the insurer promptly.
• Documentation Helps: Encourage insureds to keep records of inspections, maintenance, and repairs for all listed safeguards.

We recommend reviewing the specific language of the endorsements with your clients to ensure they understand their obligations and avoid any unintended gaps in coverage.

If you have any questions or would like to discuss how the forms apply to a particular account, please contact your AgriBusiness underwriter.