The Dirt (on Cleaning)

All About Lost Key Coverage

All About Lost Key Coverage

Tuesday, October 20, 2015/Categories: General Liability Insurance

Have you lost your keys lately? You probably left them in your jacket pocket or on the kitchen counter. They’re always in the last place you look.

But what if you truly, hopelessly lost your keys? And the set included keys to a cleaning client's building? And the building owner needs to replace all the locks and keys for the entire building because you lost your set?

That might be just a tad expensive. Good thing there's Lost Key Insurance!

What Lost Key Coverage Can Cover

Many cleaning, building service, and building restoration professionals are responsible for a set of keys that allow them into the buildings they service. Maybe it’s a master key for the building, an old-fashioned jangling keyring, or even a digital key fob. Whatever it is, it should be safeguarded. Still, accidents happen and keys go missing.

Lost Key Coverage can step in when…

  • You lose a customer’s keys.
  • They ask you to cover the cost of installing new locks and keys.

For example, let’s say you run a cleaning service for a number of office buildings. You have a copy of the keys needed to get in and clean these buildings. But one day, you leave these keys in your car and when you come back, you find that your car has been stolen along with the keys.

When you go to tell the office building managers about this, they are understandably worried that a criminal now has access to their buildings. They each decide to install new locks and place the cost of the installation on you.

For large office buildings, this could easily exceed thousands of dollars. You don’t want to eat this expense. But if you have Lost Key Coverage, it may be able to cover the expense for you.

If you have employees or volunteers that are responsible for keys, this coverage may extend to them, too.

What Lost Key Coverage Doesn’t Cover

There are two important events this coverage can't address:

  1. Employee dishonesty (i.e., when an employee intentionally loses the keys, steals them, or gives them to someone else).
  2. Stolen or damaged property made possible by the unlocked building. 

Using the example above, this means that if the criminal uses your keys to get into the office building and steal computer equipment or other valuables, this coverage won’t cover the cost of those stolen items. It can only cover the actual cost of replacing the keys and modifying locks or installing new locks.

For coverage that can help protect you against employee theft, you should look into a SPICE (Specialty Property Insurance Coverage Endorsement) policy.

Lost Key Coverage Is an Endorsement

You won’t find Lost Key Coverage as a standalone policy. It’s an endorsement (sometimes called a rider) that can be added to your General Liability Insurance policy. Not all General Liability policies have this, though. Without this endorsement, lost key expenses are often excluded from General Liability policies for cleaning professionals.

When considering business insurance policies, consider working with an agent who’s familiar with your industry so they can connect you with the appropriate coverage.

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