The Dirt (on Cleaning)

Ask Your Agent about Lost Key Coverage

Ask Your Agent about Lost Key Coverage

Tuesday, August 11, 2015/Categories: Cleaning Business Insurance, General Liability Insurance

You run a tight ship, but that doesn't mean mistakes can't happen. Say, for example, you're particularly slammed one week. You and your cleaning employees are rushing from building to building, but there's just one problem: your employee lost the key to one of the job sites. Your team searches the place, your cleaning vans, and your office, but the key is nowhere to be found.

That key could end up in anyone's hands, which means your client's property is vulnerable. Your client demands you pay to change the locks on the building and that expense adds up quickly. If you don't have deep pockets, what do you do?

If you have lost key coverage, your insurance policy might pick up the tab.

The Keys to the Castle and the Insurance that Covers Them

Lost key coverage can typically be added as an endorsement to your cleaning business's General Liability Insurance. You may already know your General Liability policy can address expenses arising from:

  • Third-party bodily injuries on your commercial property.
  • Third-party property damage or loss.

You'd think General Liability's property damage liability coverage would address the cost of a lost key, but like every policy, there are limits to what this particular portion of your insurance can and can't cover. Though your General Liability coverage can help out when you accidentally lose or damage your client's property during the course of your work, it may not cover re-keying an entire building because you misplaced a key. Usually, only a lost key endorsement can address this unique scenario.

The lost key endorsement can…

  • Extend coverage to employees and volunteers in case they are responsible for losing a key.
  • Pay for adjusting locks to accept new keys or for purchasing and installing new locks and keys.

This endorsement is certainly useful for your line of work, but there are some restrictions. For starters, it can't provide liability coverage for stolen computer equipment, even if the unlocked building made that theft possible.

Additionally, the endorsement doesn't cover dishonest acts (e.g., theft) committed by insured parties. So if your employee pockets a key to rob a client, your policy can't cover the fallout. To learn about insurance that can address employee dishonesty, check out the SPICE (Specialty Property Insurance Coverage Endorsement) policy.

For tips on hiring employees you can trust with your business's name, read "7 Things to Keep in Mind When It's Time to Hire."

So Where Can I Find This Magical Key Insurance?

Your best bet of finding lost key coverage is to work with an insurance agent who specializes in cleaning business insurance (hey, that's us!). This type of agent already understands the responsibilities that come with your line of work and knows which policies can account for your specific risks.

Because lost key coverage is an endorsement (think of it as a mini policy), adding it to your General Liability Insurance may be more affordable than you think. Lost key coverage limits may range from $5,000 to $25,000, but your cleaning insurance agent can help you determine the amount of coverage that is appropriate for your business.

Got questions? Give one of our cleaning business insurance agents a call at 800.688.1984.

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