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13.6 Other Crime Coverages

Though the Insuring Agreements are the baseline coverages provided by Crime policies, a number of other coverages exist, most often added by endorsement.

Extortion – Commercial Entities​

The Extortion—Commercial Entities Endorsement adds an Insuring Agreement that covers money, securities, and other property surrendered away from the premises because of a threat:

  • To cause bodily harm to a director, trustee, partner, member, manager, employee, proprietor, or any of their relatives who has been or is allegedly being held within the coverage territory
  • To damage the insured premises or property located inside the premises

The coverage territory also includes any additional location specifically listed in the endorsement.

Coverage does not apply to property surrendered before the insured makes a reasonable effort to report the extortion demand to an associate, local law enforcement agency, or the Federal Bureau of Investigation (FBI). In addition, the threat must be communicated to the insured during the policy period for coverage to apply.

Losses involving other property are valued at the lesser of the property’s replacement cost at the time it was surrendered or the applicable limit of insurance.

Guests’ Property​

The Guests’ Property Endorsement adds an Insuring Agreement covering loss of guests’ money, securities, and other property while the property is:

  • Kept in a safe-deposit box located inside the insured premises, subject to a per-occurrence limit of insurance
  • Located elsewhere inside the premises or held in the insured’s possession, subject to both a per-occurrence limit and a per-guest limit

This endorsement is commonly used by hotels, motels, and other businesses that provide lodging accommodations.

Under the Guests’ Property Endorsement, the exclusion for dishonest acts committed by the insured’s employees, managers, directors, trustees, or representatives does not apply. Therefore, this endorsement is the only coverage other than the Employee Theft Insuring Agreement that covers theft or dishonest acts committed by employees. However, loss caused by fire is excluded.