Cash in Safe/Drawer Policy

The storage of cash in drawer or within business premises needs to be protected against any unprecedented event such as burglary, theft, or any accident. The features of Covrzy’s Cash in Safe/Drawer Insurance Policy are as:

• Comprehensive coverage: Covrzy provides a comprehensive policy to protect businesses in the event of any losses or damages caused to the cash in safe or drawer, where the coverage also extends to cheques, money orders, or other similar negotiable instruments.

• Customized policy: Covrzy provides customized policies for businesses by curating a tailored policy aligning with the unique requirements of the business, considering the required coverage limits and premiums.

• 24 * 7 customer support: The cash in safe insurance policy by Covrzy provides expert guidance by certified advisors at every step of the claims settlement process with 24*7 assistance and help with any queries as and when required to ensure peace of mind for speedy settlement of claims.

• Digital policy management: With a seamless digital portal, Covrzy presents a user-friendly digital experience for policy management and claims initiation.

The cash in safe insurance policy is a specific policy designed to support businesses dealing with a high volume of cash. The policy coverage consists of the following:

• Theft coverage: For any event of theft or burglary within the business premises, the policy covers the loss of cash in the drawer or safe and compensates the amount as per the coverage limits.

• Accidental damage: The cash in safe insurance policy provides coverage for the cash in safe or drawer in the event of any accidental damage or destruction.

• Coverage for the storage (safe) or records: Alongside the cash, the policy also provides cover for damage caused to the safe used for storage and the cash registers with records for the movement of cash to/from company accounts to different accounts.

• Cash in transit: The policy has an add-on cover for transit which provides coverage for the loss or damage to the cash in safe being transported from the source location to the destination.

• Coverage for different forms of cash: The cash in safe insurance policy provides coverage for different forms of cash beyond the physical form, such as cheques, money orders, and other such negotiable instruments.

The cash in safe insurance policy provides coverage for the loss or damage caused to the cash in hand for businesses, but there are some limitations based on the nature of the policy. Let’s understand the policy exclusions here:

• Employee fraud: The policy does not provide coverage for any losses as a result of fraudulent activities caused by employees such as stealing or damaging the cash in safe or unauthorized transfer of cash.

• Unattended cash: The policy excludes coverage for unattended cash in safe or drawer. Some insurers also exclude coverage for cash damaged or lost beyond working hours.

• Wear and tear: For any depreciation of the safe or drawer causing damage to the cash as a result of wear and tear, this is not included in the policy coverage.

• Natural calamities: When natural calamities like floods or earthquakes cause any damage to the cash in safe, the policy does not cover it.

• Power outage: For any occurrence of a power outage or equipment failure causing damage to the cash, the policy does not provide any coverage.

• War or terrorism: The cash in safe insurance policy excludes coverage for any damage due to any activities related to war or terrorism.

Typically, the cash in safe insurance policy is suitable for businesses dealing with major cash transactions. This includes retail stores such as pharmacies, liquor stores, restaurants, gas stations, and other small businesses. When any unexpected accident of theft or break-in occurs causing significant loss of physical cash in safe, or other forms of money and securities, the insured policyholder must update the insurance company immediately without any delay.

Then, the insured must update the police and file an FIR. After initiating the claims process, the insured needs to submit the required documents and evidence through photographs and other records along with FIR. The insurer reviews the documents and appoints an investigator to verify the claims and the losses incurred by the insured. After comprehensive analysis, the insurer takes a call on processing the claims and the coverage amount, which would be further credited to the policyholder.

The cost of the cash in safe insurance policy premium depends on several factors and is estimated as a certain percentage based on the desired coverage limit. The factors which influence the price of the premium are

• The risk potential of the company premises for loss

• The nature of the business

• The range of cash in safe or drawer that needs insurance

• Security measures (quality of safe, drawer)

• Prior occurrence of theft, burglary, or accident

When businesses have a higher risk potential based on the location and nature and very less security measures, the insurer will tailor the policy with a higher premium.