Simple and Cost Effective Way to Cover Cash through Insurance
Insurance companies don’t typically make it easy to cover claims. However, one insurance company does offer what is known as a coverage extension that has been valuable to clients. The reason is, it covers cash with very few restrictions at a favorable price.
The official title is a Commercial Property Extension Endorsement. Attached to this title is either Form A, B, C, or D. Each letter represents a coverage limit. A is the lowest level of cash coverage at $10,000. B is $25,000. C is $50,000. D is $100,000. Besides cash, the coverage extension includes Employee Dishonesty, Spoilage, Sewer Backup, Fire Department Service Charge, Outdoor Cannabis or Hemp Plants, etc…
What makes this coverage special at the time of this writing is the carrier doesn’t included policy language requiring how the cash stored. Let’s face it, the most likely claim will be a theft. Essentially, if the cash is left in a drawer and stolen, then it might be easily covered on a claim. Clearly, the factual circumstances of the claim are important to note.
Below is the language from the insurance policy. Theft has been defined in the policy to means “any act of stealing except by an “employee”, director, officer, trustee or representative.”
MONEY AND SECURITIES
- We will pay for loss of “money” and “securities” used in your business while at a bank or savings institution, at the described premises or in transit between any of these places, resulting directly from:
a. “Theft”;
b. Disappearance; or
c. Destruction- In addition to the Limitations and Exclusions applicable to property coverage, we will not pay for loss:
a. Resulting from accounting or arithmetical errors and omissions;
The price for cash coverage is cheap
The cost for the coverage extensions start at $150.00/year for Coverage A. For this amount of premium, a cannabis business has cash coverage of $10,000 along with the other additional coverage previously mentioned. Below are the different coverage lines:
SCHEDULE OF COVERAGES LIMIT(S) OF INSURANCE
Accounts Receivable $10,000
Employee Dishonesty $10,000
Money & Securities $10,000
Outdoor Property (Fence, Radio/TV Antennas, Satellite Dishes, Sign) $10,000
Outdoor Property (Trees, Shrubs, or Plants) $2,500 aggregate / $500 max per item
Outdoor Cannabis or Hemp Plants $10,000 aggregate / $1,000 max per plant
Personal Effects and Property of Others $10,000 aggregate / $2,500 max per item
Spoilage $10,000
Valuable Papers and Records (Other than Electronic Data) $10,000
Backup of Sewer, Drain or Sump $10,000
Fine Arts $10,000
Fire Protection Device Recharge $2,500
Fire Department Service Charge $5,000
If you are looking to cover your cash at a retail store or store, the coverage extension is one of the best insurance products available.