Chapter 6 Flashcards
Identify three factors relating to personal property that can help business owners determine the potential for loss from a criminal act.
Convertibility, value, portability
Identify two ways in which alarm systems can be controlled.
Locally Supervised: placed on the owner and, generally, the employees of the business
Central Station Supervised: Ensures that the alarm is always turned on and off at the times arranged with the owner
What types of items would normally require point protection?
Safes, vaults, chests, filing cabinets, display cases, expensive equipment
State the purpose of point protection.
Provides direct security for individual items
State three advantages of cameras and closed circuit television when used as a means of area protection.
Hold-up and fraud deterrent value
Assist police in the identification and conviction of criminals
Reduce shoplifting
Infrared devices are the most commonly used intrusion detection devices used in commercial buildings. Explain how they work and state two advantages of these systems.
They sense body heat of an intruder as he moves through the area under surveillance. It is a change in the area’s normal heat profile that causes the alarm to trigger. Advantages include:
Several patterns of coverage available, and a number of detection units can be operated from one master device
Explain what is meant by partial perimeter protection and state two disadvantages of such systems.
Only the openings of buildings are protected.
Weaknesses:
Forced entry through walls or ceilings will not be detected
Stay behind thieves will not be detected until they leave the premises
State the main purpose of area protection devices.
Restrict unauthorized entry into areas where valuable property is being stored
State the key disadvantage common to motion detector systems.
Frequency of false alarms
Explain what is meant by complete perimeter protection and identify two kinds of physical and electronic perimeter protection devices which can be effective in restricting access into the Insured’s premises.
Detect intrusion regardless of where the attempt is made around the perimeter of the premises.
Physical: locks, bars and screening
Electronic: magnetic contact switches, glass breakage alarms
What is the purpose of a perimeter protection system?
To control access to the premises when the business is closed
Identify five methods used by criminals which can result in loss to real and personal property.
Forced entry into the building
Forced entry into protected enclosures
Unforced entry into building or protected enclosures
Forced opening of building and protected enclosures
Vandalism and malicious acts
Espionage
Shoplifting
Employee Theft
What is the main function of physical and electronic protection devices?
To restrict unauthorized access to property
Insurers provide rate credits when certain property protection systems are installed. Identify two other factors which would increase the amount of the credit available to Insureds.
Alarms monitored
Watchman or security guard service provided
Which provides the most effective means of alarm control?
The central station supervised alarm controls
What is the purpose of an alarm system?
To detect any breach of or attempt to breach the physical security of the premises and to provide a warning signal so that effective and immediate response can be instituted
How are alarm signals usually transmitted?
Through leased telephone lines
What is meant by line security?
Refers to the ability of the telephone line to withstand tampering
The receiving point of an alarm signal affects the level of protection provided by it. Discuss the level of supervisory service provided by Central station service
This is the highest level of supervisory service as it monitors all opening and closing times of the premises, automatically activates the alarm system at closing time, screens after-hours users and provides a report for the subscriber, provides immediate notice to police when an alarm is received and
dispatches a company rep to the premises immediately after the police are informed.
The receiving point of an alarm signal affects the level of protection provided by it. Discuss the level of supervisory service provided by Monitoring station service
This is the same as the central station
service but no guard is dispatched and the owner may be called to open
the premises
The receiving point of an alarm signal affects the level of protection provided by it. Discuss the level of supervisory service provided by Emergency station service
The owner turns the system on and off. Once it is on, the alarm condition is centrally monitored and police are alerted if the alarm should sound.
The receiving point of an alarm signal affects the level of protection provided by it. Discuss the level of supervisory service provided by Digital Communicator Service
The owner turns the system on and off. When an alarm is activated, it is sent along the subscriber’s standard telephone system to the alarm control centre. The alarm control centre responds by calling the police immediately.
State two disadvantages of local alarm systems.
Alarm rings on premises only.. neighbors or passers-by must be depended upon to notify policy
Can be easily tampered with
What does it mean when a device has received a ULC approved rating?
The device has met the minimum standards set by ULC for such devices
Some business owners believe that the installation of sophisticated intrusion detection devices on their premises eliminates the need to purchase insurance coverages. Discuss how you would deal with this point of view.
Physical and electronic protection systems are not always 100% effective, 100% of the time. Because of this, you must look beyond the installation of such protection and explore an additional dimension of protection for your valuables - Insurance
Your client is insured under a Broad Form commercial property insurance policy. As this policy provides coverage against theft, he is of the opinion that there is no need to purchase separate crime insurance coverage(s). Discuss.
Items such as money, furs, jewelry and property in the custody of a sales representative are excluded from coverage under the Broad Form. Businesses having such property have an exposure to crime losses which can only be covered by Crime Insurance.
Identify four key coverage areas addressed by all crime insurance riders.
Property covered
Perils insured
Location of property covered
Persons causing the loss
Summarize the general meaning given to burglary in crime insurance riders.
Involves the wrongful taking of property by a person unlawfully entering or leaving the premises as evidenced by marks of forcible entry or exit
State three coverages provided by the Safe Burglary rider.
The unlawful taking of insured property from a locked vault or safe
The unlawful taking of the safe from within the premises
Resultant damage to premises and property inside the premises insured
Identify the coverages provided by the Stock and Equipment Burglary rider.
insures stock and equipment against actual or attempted burglary, robbery of a watchman, vandalism or
malicious acts committed on the same occasion.
Damage to the interior of the premises, showcases or show windows is also insured when due to any of the above perils
Who would be a good prospect for the “Damage to Building by Burglary or Robbery” rider?
Tenants who assumed responsibility for burglary or robbery damage to the portion of the premises they occupy
Owners of buildings who do not have this coverage under their commercial property insurance policy