Pennsylvania Property & Casualty: Commercial Property, Businessowners & Crime Insurance

Correct

The answer is C: Employee Theft, under the Fidelity insuring agreement of the base crime form.

The Fidelity insuring agreement of the Commercial Crime Coverage Form (CR 00 20, the discovery form, or CR 00 21, the loss sustained form) includes Employee Theft, which covers money, securities and other property taken by an employee's theft. The jeweler's gold and silver inventory is other property, and the employee is identified. The optional endorsements cover specific exposures: items in a rented safe deposit box, securities placed with others, and guests' property at a lodging business.

Reviewed in our October 2026 Pennsylvania fact-check.

Correct

The answer is D: The fire loss is not paid, because the endorsement excludes fire loss when safeguards are not kept working.

The Protective Safeguards endorsement (CP 04 11) requires the insured to keep the scheduled protective devices in complete working order. If the insured has failed to do so before a fire, the endorsement excludes the fire loss, so the claim is denied. The insurer does not pay a reduced share, and it does not pay in full or adjust the premium after the loss.

Reviewed in our October 2026 Pennsylvania fact-check.

Correct

The answer is D: Coverage C: Increased Cost of Construction

Coverage C (Increased Cost of Construction) of the Ordinance or Law endorsement (CP 04 05) pays the extra cost to repair, rebuild or remodel so the building meets the law's requirements. Coverage A covers the value of the undamaged portion that must be demolished, and Coverage B covers the cost to demolish and clear it. Legal Liability coverage is a separate coverage form.

Reviewed in our October 2026 Pennsylvania fact-check.

Correct

The answer is B: It covers the loss, because the bonds were inside a safe deposit box that the insured leases.

CR 04 09 covers the insured's securities and other property inside a safe deposit box it leases at a bank or vault company. The box, not the insured's own premises, is the covered location, and a burglary of its contents is the kind of loss the form insures. Coverage does not depend on proof that the bank's security was inadequate, and the form does not exclude theft from the box. The base crime form's other terms and exclusions still apply.

Reviewed in our October 2026 Pennsylvania fact-check.

Correct

The answer is D: The insurer must pay, because the endorsement covers property inside a safe deposit box the insured leases at a bank.

CR 04 09 covers the insured's securities and other property inside a safe deposit box that the insured leases at a bank or vault company. The leased box is the covered location, so a burglary at the bank that empties the box is the kind of loss the form insures, and the insurer's reason for denying is wrong. The form does not depend on the property being on the insured's premises, on the quality of the bank's security, or on a prior suit against the bank. The base crime form's other terms and exclusions still apply.

Reviewed in our October 2026 Pennsylvania fact-check.