FEDERAL CRIME INSURANCE PROGRAM COMMERCIAL POLICIES TO PROTECT YOU AGAINST FINANCIAL LOSSES, FOR UP TO $15,000, RESULTING FROM BURGLARY OR ROBBERY OF YOUR BUSINESS. TOLL-FREE NUMBERS 800-638-8780 Inquiries 800-526-2662 Claims Dept. (including Puerto Rico and the Virgin Islands) D.C. Metropolitan Area: Dial 257-7660 Remainder of Maryland: Collect (301) 257-7660 REPLACES ALL PREVIOUS EDITIONS. (Rev. 9/88)
WHAT IS THE FEDERAL CRIME INSURANCE PROGRAM? This federally-subsidized program, which began Its operation In August 1971, authorizes the Federal Government to sell crime Insurance at affordable rates In any eligible state. Federal Crime Insurance offers protection to residents and business owners against financial losses from burglary and robbery. WHY WAS THE PROGRAM CREATED? Due to increasing crime rates, business owners experience increasing difficulty in finding, affording or renewing crime insurance through the voluntary market. These individuals are unable to obtain protection against financial losses from burglary and robbery. In response to the problem, evidence was reviewed at Congressional hearings, and legislation was passed in 1970 to create Federal Crime Insurance. Today, the Federal Insurance Administration, as part of the Federal Emergency Management Agency, makes crime insurance available in states where this insurance is not fully available at affordable rates. WHO IS ELIGIBLE FOR FEDERAL CRIME INSURANCE? You can obtain affordable crime insurance from the Federal Insurance Administration of the United States Government if you live in: Alabama, California, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Illinois, Kansas, Maryland, New Jersey, New York, Pennsylvania, Puerto Rico, Rhode Island, Tennessee, or the Virgin Islands. WHAT KINDS OF CRIMINAL ACTS ARE COVERED? (1) Burglary, which means the taking of property from within a business which has been forcibly entered, as evidenced by visible marks upon or physical damage to, the exterior of the premises at the place of entry. Burglary coverage insures against burglary or robbery of a watchman, when the business is closed, of merchandise, furniture, fixtures and equipment as well as the stealing of money, securities and merchandise by burglary of a safe. (2) Robbery, which means the taking of property from the victims by violence or threat of violence both inside and outside the business, including observed theft. Robbery does not include mysterious disappearance, misplacing of personal property, or a theft of property not observed by the insured. (3) Damage occurring during the burglary or robbery, or attempt thereat, provided the Insured is the owner or is liable for such damage. HOW MUCH INSURANCE CAN YOU BUY? Commercial crime insurance can be purchased in increments of $1,000 up to a maximum of $15,000 with a choice of the following policy coverages: Option 1: Burglary only, including safe burglary, and resulting damage. Option 2: Robbery only, inside and away from the premises, and resulting damage. Option 3: A combination of burglary and robbery in uniform and varying amounts. HOW MUCH DOES IT COST? Rates are based on the class of business, the gross receipts for the business for the preceding year and the amount of coverage under the option selected. DISCOUNTING: ALARM/SAFE/PROTECTION SERVICE CREDITS The Federal Crime Insurance Commercial rating plan offers economic and loss prevention incentives to businesses in the form of premium credits for the verified presence of protective devices and/or services. The alarm/safe/protection service includes burglary protective devices: central station supervised alarm with guard dispatch; central station supervised alarm without guard dispatch; silent alarm; local alarm; and safe/vault alarm and robbery protective devices or service: holdup button and bonded armored car service. Discounts are available on both burglary and robbery coverage premiums depending upon the type of alarm/safe/protection service protecting the premises. There is an additional 10% discount for combined burglary and robbery coverage.
For a specific rate quote, contact your insurance agent or broker. You may also obtain more complete information by contacting the servicing company on the toll-free number 800-638-8780. HOW DO YOU BUY IT? A check or money order for at least one-quarter of the annual premium should be made payable to the Federal Crime Insurance Program and mailed with the application. Installment premium payment bills will continue to be sent until the policy is paid in full. If an applicant elects to send a partial payment instead of the annual premium, a $2.00 service charge will be required on all subsequent installment bills. Any licensed property insurance agent or broker can help you submit an application at no cost to you. Agent commissions are paid by the Program. Applications may also be sent directly to the servicing company. FOR INFORMATION OR APPLICATIONS CALL OR WRITE: FEDERAL CRIME INSURANCE PROGRAM P.O. BOX 6301 ROCKVILLE, MARYLAND 20850 TOLL FREE 800-638-8780 (including Puerto Rico and the Virgin Islands) D.C. Metropolitan Area: Call 251-1660 Other Maryland Areas: Collect (301) 251-1660 ARE THERE ANY OTHER REQUIREMENTS? Because the Federal Crime Insurance Program is intended to help owners protect their businesses from crime losses, applicants must meet minimum protective device requirements to qualify for burglary insurance: All doors, doorways, storefront windows and accessible openings must be adequately protected during nonbusiness hours by bars, grillwork, and locking devices. Alarm system (central station, silent, local or none) are specified for the type of business insured. WILL THE PROPERTY BE INSPECTED FOR COMPLIANCE WITH PROTECTIVE DEVICE REQUIREMENTS? Commercial properties are Inspected at the time of application for Insurance which includes burglary coverage. Policy Issuance is conditional upon the Inspector confirming that the property is In compliance with the protective device requirements. If the property fails to meet the protective device requirements, the inspector will advise the applicant what must be done to bring the property into compliance. Eligibility of coverage will be determined by the FCIP. The Administrator may, at his discretion, waive one or more protective device requirements H compliance would be impractical and would impose a cost not reasonably commensurate with the protection desired. At the time of loss, protective device requirements will again be inspected as part of the adjustment process to confirm compliance. VERIFICATION/ELIGIBILITY FOR PREMIUM DISCOUNTS For verification purposes and to determine eligibility for premium discounts, an alarm/safe/protection service contract is required prior to policy issuance. A bill of sale for a safe is acceptable documentation. HOW DO i REPORT A LOSS? You must notify your local law enforcement authorities and the Insurer immediately. It is important that any loss exceeding the applicable deductible be reported to the Insurer as soon as the loss is discovered, since the insured must file a detailed proof of loss within 60 days after the discovery of the loss. The Insurer can be notified either through the agent or broker or by contacting the servicing company directly on the Claims toil-free number 800-526-2662. Losses will be dented H this deadline Is not met. Reporting of a loss by the insured to his/her agent or broker doss not constitute reporting to the Insurer. The agent or broker is responsible for notifying the Insurer immediately in order to comply with policy requirements.
COMMERCIAL PROTECTIVE DEVICE REQUIREMENTS ALARM TYPES The classification of business determines which alarm systems, if any, are required to protect the premises. Classification of the business is determined by the highest classification of merchandise inventoried or held for sale. Any required alarm system must protect all the exterior doors and accessible openings (including storefront display windows and unbarred skylights). This is in addition to the required locking devices and hinge pins. If no alarm system is required, the insured may elect to use a combination of alarm protection and physical barriers. The four types of alarm systems required to protect the premises are described as follows: Central Station, Supervised Service Alarm System - A silent alarm that is constantly in operation, which signals upon any breach of a door, window (including storefront windows and unbarred skylights), or other accessible opening to the protected premises, at a private sentry or guard headquarters that is attended and monitored twenty-four (24) hours a day, that dispatches guards to the protected premises immediately upon the activation of the alarm, that periodically checks the operation and effectiveness of the system, and that notifies law enforcement authorities as soon as any breach of the premises is confirmed. Central Station, Supervised Alarm System (Without Guard Dispatch) - A silent alarm that is constantly in operation, which signals upon any breach of a door, window (including storefront windows and unbarred skylights), or other accessible opening to the protected premises, at an office of the law enforcement authorities or at an office of an independent agency located at a distance from the protected property, which has trained operators continually on duty twenty-four (24) hours a day to receive signals and to notify law enforcement authorities as soon as any breach of the premises is confirmed. Silent Alarm System - An alarm system that signals at a location other than the location where It is installed upon any breach of a door, window (including storefront windows and unbarred skylights), or other accessible opening to the protected premises. Local Alarm System - An alarm system that signals loudly at the premises by means of one or more tamper-protected sounding devices upon any breach of a door, window (including storefront windows and unbarred skylights), or other accessible opening to the protected premises. NOTE: If either of the central station alarm systems specified is not available in the community in which the premises are located, a silent alarm shall be permitted. ADDITIONAL ALARM/SAFE/PROTECTION SERVICE TYPES Burglary Safe/Vault Alarm - A safe or vault protected by a central station or silent supervised alarm system. Robbery Holdup Button - A holdup alarm system that is constantly in operation and signals at an office of law enforcement authorities or at an office of an independent agency located away from the protected property. Accessible, but inconspicuous, buttons at hand or foot or knee levels are placed throughout the premises. An insured may, at his option, cause the alarm to sound on the premises, in addition to the remote location. Bonded Armored Car Service - To cover robbery away from the premises when cash is transported from the insured premises to the bank.
Ftderal Crime Insurance Program FACT SHEET COMMERCIAL PROTECTIVE DEVICE REQUIREMENTS KAMPits o» Accessor OPINING* AND LOCKING Of vcrs w t *WD TO IN TMT PROTECTIVE Of wcr «oui«mf NTSI AIR VENT SKYLIGHT TO BE PROTECTED BY BAMS on GR'LiwoRK O«BV ALARM SYSTEM AIR VENT AND WINDOWS WITHIN 18 FEET FROM GROUND AND EXCEEDING 96 SQUARE INCHES IN AREA AND 6 INCHES H THE SMALLEST DIMENSION ARE ACCESSIBLE OPENINGS AND MUST BE PROTECTED STOREFRONT PLATE GLASS DISPLAY WINDOWS NEED NOT BE PROTECTED B* BARS O«GR'LIWORK n DOOR OR DOORWAY TO BE PROTECTED INCLUDING TRANSOM SIDEWALK DOORS TO BE PROTECTED BY DEAD BOLT LOCKS OR HEAVY DUTY PADLOCKS OIAD BOLT LOCK DEAD BOLT LOCK FOR NARROW FRAME DOORS THE THROW OF THE LOC«iS ILLUSTRATED BY THE DISTANCE WHICH THE BOl 1 EXTENDS FROM THE EDGE C*r THE DOOR WHEN THE IOCK IS IN A LOCKED POS'TiON MINIMUM OF < FOR COMMERCIAL N <y eon is TO SWING OUT AND UP OUTSIDE ins'df MOKTWEO DEAD BOLT LOCK (Recessed into ihe edge o' l»» aoo' osieje c' p* EXAMPLE OF BAM AND ONILIWOHK STRIKER BOLT HARDENED VTIEL BMACKLE SnouKI l» minimum 3/8 m.c«l A HEAVY DUTY PADLOCK («.- CM* h«rd*nm MMl IhKkl*) FIVE PIN TUMBLER OPERATION THE STEEL BAR AND STAPLE V THE HASP SHOULD BE CASE HARDENED AS j IS THE PADLOCK SHACKLE RECESSED SCREWS SHOULD BE CONCEALED WHEN THE HASP is CLOSED DEAD BOLT LOCK UTILIZING INTERLOCKING VERTICAL COLTS AND STRIKER CAM HARDENED BTf EL BHACKLE