This endorsement, and others of a comparable nature used by various insurers, is an interline endorsement. It may be made applicable to any of several coverage parts or major forms of insurance. Its importance is clear when related to a building and personal property coverage form written for a large commercial building and its extensive business personal property. The specified protection measures must be maintained as a condition of the insurance. Without such protection, insurance might not have been written, the scope of coverage might be less, or the cost of insurance would be much higher.
Loss prevention is of major importance to insureds and insurers.
Agents and brokers can, indeed, provide appreciated professional service to commercial insureds whose policies contain provisions requiring the maintenance of protective safeguards. Periodic visits with such an insured, for the purpose of making certain that required protection is operational, is a notable loss prevention effort. It may avert coverage problems in event of loss, including denial of coverage. Insureds can become complacent about their responsibilities of maintaining protective safeguards. An employee, in a hurry to leave, might think that a tub containing accounts receivable records could be safely left out for one night and the records not returned to the designated receptacle.