C35 Insurance Against Crime

Both commercial and personal property may be targets of criminals. Unfortunately, law and order are not enough to prevent crimes against property. Throughout the world crime rate has been rising, especially offences against property. With crime on the rise and low chance of recovery a need has been created for additions to fire and GL insurance. such as theft, burglary, fidelity and many more crime related coverage's.

Inside hold up- money, securities, merchandise, equipment, other property

Outside hold up- money, securities, merchandise

Safe burglary- money, securities, merchandise

Mercantile Stock burglary- merchandise, equipment, furniture, improvements

Damage to building caused by burglary or hold-up- building

Theft- All Property

Extortion- All property

Forgery and counterfeit paper currency- money orders, cheques, paper currency

Safe Deposit Box Burglary- all property including money and securities

Employee dishonesty, alone or with outside help- all property

Computer Fraud- money, securities, merchandise, confidential information

Document forgery- securities, cheques

Theft- personal property, plus professional goods, property and goods

Burglary- Under the care, custody or rented to the insured

Safe deposit box- All property, including money

Fraud- credit cards, cheques, counterfeit money

1. Declarations

2. General Conditions

3. General Definitions

-Details of the insured

-limit of insurance

- premiums

-9 coverage's under form 6001-6009

- 3 more lines for any necessary endorsements

1. Canadian currency clause

2. Cancellation

3. Change of interest

4. Changes

5. Discovery period for loss

6. Duties in the event of a loss

7. Inspection

8. Joint Insured

9. Legal action against insurer

10. Loss sustained during prior insurance

11. Other insurance

12. Ownership of property, interest covered

13. Policy period, territory

14. Records

15. Recoveries

16. Representations

17. Transfer of Insureds rights of recovery against others to the insurer

18. Valuation

Insurers will only cover losses discovered no later than one year from the end of the policy period

As soon as the insured has knowledge of a loss they must:

- Notify insurer

- accept to be examined under oath if requested to do so and agree to submit a signed statement of answers

-submit a detailed, sworn proof of loss within 120 days

-cooperate with insurer in the investigation and settlement of any claim;

-immediately notify the police or other legal body of any loss due to violation of law

-take any reasonable means to prevent negotiation, sale or conversion of any securities insured under this policy.

Any recoveries less the cost of obtaining them, made after the settlement of loss under this policy will be distributed

a) loss or damage cause by fire

b) damage to glass or damage to lettering

c) the war

d) nuclear incidents

e) loss or damage to manuscripts, records or accounts, except for blank value

loss of money, securities and property by theft- damage to premises and to property by actual or attempted theft, provided insured owns the property or is liable for damage to it.

From premise, from a night depository safe provided by a bank or trust company on its premises for the use of its customers, or while in the care or custody of a person duly authorized by the insured to have such care or custody thereof.

loss of or damage to contents of alms box, poor box or similar receptacle.- These are often broken into by thieves resulting in high frequency of minor claims.

Damage caused to the premises by actual or attempted burglary or robbery or by vandalism or malicious mischief committed on the same occasion, if insured is the owner of the premises or is liable for damages to such premises.

premises, showcases and show windows

damage to glass or damage to lettering

war

nuclear incidents

loss or damage caused by fire, or loss occurring during a fire in the premises, showcases or show windows

Endorsement must be signed by the insured and shows details of burglar alarm protection. Must specify whether his safe or vault is fully protected by the system. Failure by the insured to keep described alarm system operational or to notify insurer upon knowledge that alarm signals will be disregarded by policy or alarm company will result in reduction of coverage equivalent to the amount of insurance granted if there had been no alarm system

If insured requests a higher amount of insurance in custodians home, insurer will issue this endorsement in consideration of additional premium

This endorsement is used to increase limits on either tobacco products, drugs, liquor or jewelry. Since all these items are highly attractive to thieves, insurer should be reluctant to increase limits without making sure that a burglar alarm and other forms of protection or present.

Is used to increase the $200 limitation on this exposure as set out in rider 6009-stock burglary

Offered to commercial operations with seasonal peaks such as toy stores, hobby shops, ski equipment dealers etc. Limit of insurance is increased only during the peak period specified thus exempting the insured from paying premium for coverage limits only needed on or two months a year.

Issued to add a new paragraph to the definition of premise to include that portion of the grounds which is entirely enclosed by a fence or wall, at the address of the risk shown in the declarations.

Provides the insured with automatic insurance at newly acquired locations provided that the insured gives the insurer notice of acquisition within 30 days. The amount of insurance of this automatic coverage is limited to the lowest limit of insurance provided at any other insured locations.

No visible marks of forcible entry or exit are required, there would be coverage if, for example the premises were left unlocked and someone walked in during the night and stole stock or equipment.

This endorsement adds coverage for gold, platinum and other precious metals used by a dentist covered by an office/store burglary and robbery rider.

This endorsement is used if either the insured or the insurer wants to exclude one or more of these items from the coverage.

This warranty states that insurance will cease if the burglar alarm is no longer hooked up, does not work, or if the company is not responding to alarms.

Building, equipment and stock. - At temporary locations, newly acquired locations, parcel post, other transit, sale reps

-money, bullion, platinum and other precious metals, alloys, securities, stamps, tickets, tokens, evidence of debt or title.

- furs, fur garments, jewels, jewelry, costume jewelry, watches, pearls, precious and semi precious stones

- property in the custody of a sales representative outside the premises of the insured, unless an amount of insurance is shown on the clause "dec pages" pertaining to sales representative.

Insures against all risks of direct physical loss of or damage to the property insured

-Any dishonest or criminal act on the part of the insured or any other party of interest, employees or agents of the insured, or any person to whom the property may be entrusted

-mysterious disappearance or shortage of equipment or stock disclosed on taking inventory

The unlawful taking of insured property from within the premise by a person unlawfully entering or leaving the premise as evidenced by marks of forcible entry or exit

The taking of insured property from a custodian by person or persons who have:

-caused or threatened to cause the custodian bodily harm

-committed an overt unlawful act witnessed by the custodian

-taken such property from a custodian who has been killed or rendered unconscious

Theft is the felonious taking of property with or without force or violence while the premise are open or closed. The essential element is the felonious taking without any strictures as to how it is done. it does not include the mere misplacing of property.

Compelling of a custodian outside the premises by violence or threat of violence to admit a person or to furnish such person with the means of entry into the premises while closed for business, resulting in unlawful taking by such person of insured property from within the premises provided such loss shall occur before the premise are next open for business

The insured or his partner, or any employee authorized by the insured to have the care and custody of insured property, excluding any person while acting as a guard, janitor, porter or watchman.

Any able bodied person who accompanies a custodian at the insureds direction, who is not the driver of a public conveyance.

1. Employee dishonesty, Form A: (aggregate amount of insurance for all employees)

Employee dishonesty, Form B: (aggregate amount of insurance per employee)

2. Loss inside the premise

3. Loss outside the premise

4. Depositors forgery

Employee dishonesty insurance protects the insured against the loss of money, securities or other property resulting from the dishonest acts of an employee, alone or in collusion with others.

-Evolved in north america during the past century

-employers discovered that certain tasks, such as treasurer or cashier, allowed some employees to handle large sums and therefore became heavy risks.

Loss of money, securities and other property means that coverage goes beyond money and securities. Employee dishonesty insurance applies to all goods mentioned in the policy, which includes merchandise and even intangible property having a monetary value, such as models, forms, confidential information, software etc.

Only direct damages and losses are covered. Indirect losses such as loss of profits from decreases in interests or dividends resulting from a covered loss are always excluded from fidelity losses.

Loss of money, securities and other property which the insured shall sustain, to an amount not exceeding:

A: in the aggregate the amount stated in the table of limits of liability applicable to this insuring agreement 1, Form A or

B: The amount of insurance on each of the employees being the amount stated in the table of limits of liability applicable to this insuring agreement 1, Form B

Insurers have special services which may easily take procedures for recuperating the loss at the right moment. This acts as a deterrent for any intention of foul play

-there must be fraudulent or dishonest act, errors or neglect are not covered; not following the rules and regulations of the firm is not insured either

- there must be manifest intent to defraud the employer

Any natural person except a director or trustee of the insured corporation, who is not also an officer or employee thereof in some other capacity while in the regular service of the insured in the ordinary course of the insureds business, including persons hired through an intervening employment agency, during the policy period and whom the insured compensates by salary, wages, or commissions, and has the right to govern or direct in the performance of such service.

Canada and any of the sates of the united states of america or the district of columbia

The loss is covered if discovered during the policy period- due to the nature to this coverage some losses could have been suffered without the insureds knowledge over a long period of time, if the discovery period was not stretched, many losses would only be partially paid

-losses over time which exceed the policy period

-losses happening during the policy period but only discovered after the policy has been transferred to another insurer or cancelled.

A. Discovery period is usually one or two years following the end of the policy period: Loss is covered under this policy only if discovered not later then one year from the end of the policy period,except that under insuring agreement 1B., loss is covered only if discovered not later than two years from the end of the policy period.- If the loss which occurred partially or entirely during the policy period is only discovered after the policy is terminated, this loss will be paid up to the specified limit of insurance.

B. Loss under prior bond or policy. This looks into employee dishonesty which occurred over a long period of time in the past involving two or more previous insurance policies, the discovery period of which has expired. This is where a general agreement comes into play.: If the coverage of an insuring agreement of this policy, other than insuring agreement V (depositors forgery), is substituted for any prior bond or policy of insurance carried by the insured or by any predecessor in interest of the insured, which prior bond or policy is terminated, cancelled or allowed to expire as of the time of such substitution, the company agrees that such insuring agreement applies to loss which is discovered as provided in section 1 of the conditions and limitations and which would have been recoverable by the insured or such predecessor under such prior bond or policy except for the fact that the time within which to discover loss there under had expired; provided: 1. the insurance under this general agreement C shall be a part of and not in addition to the amount of insurance afforded by the applicable insuring agreement of this policy.

2.such loss would have been covered under such insuring agreement had such insuring agreement with its agreements, conditions and limitations as of the time of such substitution been in force when the acts or events causing such loss were committed or occurred; and

3. recovery under such insuring agreement on account of such loss shall in no event exceed the amount which would have been recoverable under such insuring agreement in the amount for which it is written as of the time of such substitution, had such insuring agreement been in force when such acts or events were committed or occurred, or the amount which would have been recoverable under such prior bond or policy had such prior bond or policy continued in force until the discovery of sch loss, if the latter amount be smaller.

Most insurers accept to cover such cases even if the actual culprit is not identified. All the employer needs to do when this clause is granted is show that the loss was caused by one or more employees.

Form A applies when the amount of insurance is per occurrence independently of the number of employees involved, and the period of discovery is one year

Form B applies when the amount of insurance is per employee involved in the embezzlement, and the period of discovery is two years. It is usually forbidden to underwriters to issues policies in excess of $100,0000 for Form B; any amount over this should be issued under Form A.

* Form B is not always as desirable as one would think, besides splitting the amount of the claim between the number of employees involved, the employer will also have to show the amount stolen by each.

Individual employee dishonesty policy- used in cases where the employee is asked to supply his own fidelity bond. The employee becomes the main debtor, his employer, the beneficiary and the insurer is the guarantee.

1) counterfeit paper currency (Canadian or american)

2) False post office or express company money orders

Only covers cheques issued by insured. It does not cover cheques received by or cashed by insured. Forgery may be applied to the signature, the amount or the recipient of the cheque.

Forgery may have been committed by an employee or by a third party. If an employee did the forgery, the loss is covered under insuring agreement I- employee dishonesty

1. Financial Institution Bond, From No. 14- Required by investment dealers association

2. Financial Institution Bond, From No. 15- Covers finance companies, but mainly in the U.S.

3. Financial Institution Bond, From No. 23- Covers credit unions and caisses populaires.

4. Financial Institution Bond, From No. 24- Covers banks, trust companies and any other lending institution. Can also be used for credit unions or caisses populaires. Is mandatory for trust companies. All Canadian banks are covered under for 24.

5. Financial Institution Bond, From No. 25- Covers insurance companies, life or general. Mandatory for life insurance companies

1. Cover CDN and US

2. Subject to government approval

3. Max limit to be paid for losses in policy terms

4. first 3 coverage's of all policies are similar

5. No discovery period after expiry

6. all financial expressions are well defined

7. definition of employee includes attorneys, guest, student, outside data processors and partners of the insured

Agreement A- Fidelity

B- Loss within premise

C- Losses while in transit

D- forgery of cheques

E- forgery of securities

F- Covers counterfeit currency

Stock burglary coverage often used to be added to 3-D polices. With the advent of commercial blanket policies, it is no longer necessary. Burglary coverage includes a requirement that there must be unlawful abstraction of property with visible marks of entry or exit.

A less common endorsement since credit card companies accept to limit insured to a $50 loss if he loses his credit cards. Since theft must be reported within a short amount of time, some employers who give company credit cards to their employees choose this coverage since their employee might have passed said deadline, thus losing the benefit of the credit card companies extension over $50.

This is a high risk coverage and insurers insist on a 25% participation from the insured t make him cautious in handling of incoming cheques.

A menace to the safety of persons or property.

a) Threats to the safety of a person

b) Threats to the safety of property

Coverage is split into two parts and the insured decides which coverage is required or if they would like both.

If conditions are met the 3-D policy will cover computer fraud.

This coverage would protect the insured against the loss of money, securities and other property through computer fraud without having to prove that an employee caused the loss.

1. Employee dishonesty Form A: Aggregate amount of insurance for all employees

Form B: Aggregate amount of insurance per employee

2. Loss inside

3. Loss outside

4. Money orders and counterfeit paper currency

5. Depositors forgery

1. Employee dishonesty Form A: Aggregate amount of insurance for all employees

Form B: Aggregate amount of insurance per employee: Covers for loss of money, securities and other property which the insured shall sustain resulting directly from one or more fraudulent or dishonest act committed by an employee, acting alone or in collusion with others.

2. Loss inside- grants a broad coverage for money and securities withing the premises or banking premise, or during transport, while also adding limited robbery and safe burglary coverage for other property

3. Loss outside- loss of money and securities by their actual destruction, disappearance or unlawful removal from outside the premises while such property is being conveyed by a custodian, or an armored motor vehicle company, or by theft while within the living quarters in the home of any custodian.

4. Money orders and counterfeit paper currency- Covers counterfeit paper currency and false post office or express company money orders

5. Depositors forgery- Covers only cheques issued by the insured, does not cover cheques received by or cashed by the insured. Forgery may be applied to the signature, the amount or the recipient of the cheque. May be committed by an employee or a third party.

All financial expressions used in these policies are well defined to prevent ambiguity

Because of the complexity of their operations and because of the importance of the risk, financial institutions are covered by a set of policies different from those used for industrial or mercantile risks.

Investment brokers- Form 14

Credit unions and caisses populaires- Form 23

Trust Companies- Form 24

Life Insurance Companies- Form 25

Having premiums paid to the company that exceed the losses and expenses paid out. Manual premiums are designed to only be sufficient for the average risk in each class. If risks are below average for their class they should be surcharged or declined. Crime insurance underwriters are concerned with moral and physical hazards.

-moral hazard ex. making of exaggerated claims, by habitual carelessness on the part of an insured which results in the "mislaying" of articles and the making of claims alleging theft

-physical hazard ex. residences that are left unoccupied for frequently or for long periods of time become a target for the housebreaker.

-the thickness of steel in the body and door of the safe or vault

-proper combination lock is being used

- the proper safe is being used for the type of risk and the amount of money be held

inspections must be done to determine is a risk is acceptable or if recommendations need to be made

-make sure book keeping and stock records are adequate to ensure we can properly pay out burglary losses

- high target risks such as furriers, clothing stores, jewelers should have a suitable alarm system

-cash kept on premise is reduced

-if large sums of money are to be conveyed outside the premises, the underwriter should require the use of a vehicle by the custodian, preferably with a guard- routes should vary

- place cashiers in closed booths where he is less subject to threats

-cash kept on premise is reduced

-if large sums of money are to be conveyed outside the premises, the underwriter should require the use of a vehicle by the custodian, preferably with a guard- routes should vary

- place cashiers in closed booths where he is less subject to threats

-there must be an adequate safe for money and securities to be stored after hours

- must maintain an accurate record of the liability accumulated in each vault where there is an exposure , to ensure they are not exceeding the companies carrying capacity.

- vaults with inferior construction should be considered more carefully

- always some doubt to the value of property actually at risk at any time as the insurer has no way of knowing what the lessees of the boxes have deposited for safekeeping

-must make sure the business being bonded is legitimate and well conducted

- audits and inventories are frequently carried out

-employee salaries should be adequate, to ensure employees can live reasonably without being tempted to steal

-applicant of forgery insurance should be of good reputation

-controls put by applicant on his issuing and accepting of cheques should be good

-access to blank cheques used by the depositor should be restricted

-if possible cheque writing machines should be used

- reputation

-character

-financial standing

-loss experience

-protection

Same considerations of a fidelity bond, broad form moneys and securities and forgery policy

(Insurance crime prevention bureau)

Provides underwriters with information on the hazards of certain other risks.

Reinforced concrete 6” +
Timber 4-5” tongue/groove, laminated
Class I or class II metal deck
Wood Joist roof 1-2” planking
Light wood planking, plywood etc

Reinforced Concrete 6” +
Solid Clay Brick 8” +
Concrete Block 10” +
Corrugated sheet metal on wood/metal frame (nuts inside)
Frame construction, plastic/hardboard, plywood, etc.

Interior finishing can disguise openings in masonry walls which the experienced criminal will readily spot. These should be bricked up in order to restore the walls to their original strength.

Flimsy partitions present poor protection and should be protected by heavy sheet metal or alarm protection.

In multi-tenant risks, care should be taken to see that occupancies are seperated by strong masonry party walls extending to the underside of the roof deck.

-favorite point of entry

-suspended ceilings can present problems in that losses can occur without the insured knowing the source of entry or that even a loss has occurred.

Nature of risk, situation & use of door, condition of the door, inherent strength of the door, reinforcement of door, secure door frame, suitable lock.

1 1/2 hour rating and no glass
Flat iron/steel, or 2” solid hardwood
2” solid softwood or 1 1/2” solid hardwood
2” softwood, glass panels
2” or less close boarded framed/ledged/braced
1 3/4” hard/softwood rebated panels
Less then 1 3/4” framework/flush plywood panels
Ledged doors, toughened glass, and roller doors cannot be reinforced; others can be protected with shutters, wire grills, iron bars, or sheet metal lining:
Iron Bars 5/8” round or square, 1 1/2” flat (3/8” thick) 5” apart
Metal lining 16 gauge steel
Screens 8 gauge, frame tightly fitted
Hinges 4” long steel/brass, butt type, tapped.

iron bars- round at least 16mm, square 16mm, flat 37 mm wide by 10 mm thick, secured by carriage bolts with nuts on the inside and bolt burred over nut. all bars should be fixed horizontally at 125 mm centres

metal lining- of at least 16 gauge steal secured by screws at 100 mm spacing, screw heads to be defaced, two dog bolts on hinged side of the door, whether outside or inside hinges, and an additional hinge to support added weight.

Screens- diamond or square mesh of at least 8 gauge 5 mm wire with strands bent over out frame and the whole screen galvanized and secured at 600 mm intervals.

frame- door frame should be fitted tightly and secured to masonry. Any opening to be filled with masonry material.

hinges- should be at least 100 mm long of steel or brass, butt type and if outside, dog bolts (pins which protrude from the door edge into holes in jamb) or bars are required. If the hinge pins are of the removable variety, they should be secured on the inside by tapping and pinning them into position.

Frame types-

Fixed metal frames, glass less than 80”sq'd, glass bricks
Fixed metal frames, glass greater than 80" sq'd
Fixed wooden frames
Windows with opening lights

Glass Types-

Unbreakable (bonded with polyvinyl butyral)
Plastic glazing (ULC Burglar Resistant)
Wired glass
Plate glass
Leaded glass

Frames and glass should not be removable from outside

-Amount of insurance

- the attractiveness of the stock and the locality of the risk.

-if ground floor with windows increased security is needed

-bars should be flat, at least 10mm thick by 37 mm wide, not more then 125 mm apart, mortised into the brickwork or secured by bolts or screws

-screens should be diamond or square mesh of at least 8 gauge 5 mm wire with strands bent over out frame and the whole screen galvanized and secured at 600 mm intervals.

Great care should be taken to see that windows and other openings which are accessible from adjacent roofs and structures are properly protected. Ladders and other movable items, which can be used to vault onto the roofs or gain access to windows, should be removed to a safe location. Trucks and other vehicles, which can serve the same purpose, should be locked and pared well away from buildings.

They should be of substantial construction and should be secured b inside locks and protected by metal bars or screens, as required for all accessible windows.

1. How the lock is secured to the door (mortice or rim)

2. Type of lock bolt (spring latch, deadbolt, dead latch)

3. Type of lock bolt throwing mechanism (cylinder, skeleton key, knob, etc.)

Mortice locks: Recessed or built into door; lock is an integral part of door, stronger.

Rim Locks: Mounted on inside surface of door, easier to install. Because they are not an integral part of the door a poorly installed lock could be compromised by apply force to the door, in which event the lock and door may separate.

Outside face of locks should be flush with door surface.
Glass Doors: Locks at bottom tend to get clogged with dirt and are exposed to excessive wear. Locks at top are sometimes not used by employees who can’t reach them, and only lock bottom.
Garage Doors: Locked with spring latch operating on cross bar through holes in jam; holes should be drilled at ends and padlocks installed.
Elevator Doors: Secured with padlocks.
Double Doors: Need 2 mortice locks well apart & steel/brass/iron 10” bolts top & bottom, or steel locking bar & padlock.
French Doors: Need swing action dead locks & bolts top & bottom.
Unused doors: Bolted with 2 10” steel/iron/brass bolts.
Padlocks: Not acceptable on exterior of door.

-Mechanical lock (most common)

-Electro-mechanical lock

-Electronic locks

Warded Locks: Oldest type, see-through key hole, long barrel-like key; locking bolt retained by pressure on steel spring. For bolt to move, spring tension must be released by turning key. Key passes over ‘wards’ (obstacles built into lock case). Very poor lock, spring vulnerable to manipulation.

Lever Locks: Levers held in position by spring tension wire; each lever has lug to bolt of lock. The pattern of the key raises levers to proper positions to open. Highly pick resistant. For cabinets/lockers/bank safe deposit boxes.

Special Keyways: Curved/Narrow keyways with 5-6 pin cylinders makes picking difficult.

Key in Knob Locks: Lock cylinder in door knob, usually dead latch. Not good protection; excessive force to knob may open.

‘Jimmy-Proof’ Locks: 2 vertically-moving dead bolts lock into compatible striker. May be good if cylinder pick resistant.

Pin Tumbler Locks: Invented by Linus Yale.

Standard Pin Tumbler: Most common lock. Lock cylinder is an inner rotating plug with cam; when rotated, cam withdraws bolt. Pins raised to common level (sheer line). Higher # of pins better (usually 5). Pins readily duplicated, picked fairly easily, cylinder can sometimes be removed with special tools.

Mushroom Pin Tumbler: Mushroom-shaped pins, more pick-resistant.

High Security Cylinders:
Rotating disc cylinders: 6-10 rotating discs; needs exact key. Key aligns cylinders to single groove at top of disc and locking bar drops. Discs scramble (random) when key withdrawn. Only select locksmiths with authorization can duplicate key. Highly pick resistant, also resists forcing/drilling.

Rotating Pins: Pins are pointed, rotate, and lift to common shear line with proper key; highly pick resistant; duplicate keys through selected locksmiths for adequate key control.

Glass doors with narrow metal frames require a special type of lock with a pivoting bolt that moves deeply into the frame of the door. Where extra protection against prying is desired, the hook bolt should always be used. Both bolts resist sawing attacks.

Good Padlocks:
Shackle must lock & unlock by key only
Key non-removable when lock open
Hardened steel shackle
Shackle deadlocks on both sides
Body of lock 1 piece, hardened steel
Pick-resistant cylinder, key duplication control

Electrically-activated keeper for locking mechanism, good protection if lock resists force and electrical circuit secure; can use key also (e.g., apartment buildings)

ID Cards inserted into card readers and within a certain time the user must type in an ID #; latch release switch. Expensive and used for high security areas, locking mechanism needs to be good too, card security is important, system logic must be updated, in order to erase obsolete data, such as former employees

Locks by key from both sides; better security, burglar can’t open by breaking window and opening door by hand; also can’t leave through door with stolen goods. But life safety requires exit doors have ‘thumb turn’ (single cylinder) locks, so occupant can leave in an emergency without a key.

Simply means a sophisticated closed circuit system which meets the minimum requirements for ULC Line Security Level I.

Conductors used to interconnect units of protection in a burglar alarm system

Follow contours of building and run as high as practicable.
For sharp corners/projections, protect with 2 layers electrical tape.
For vertical wires between floors, use fire resistive covering.
Outside wires enter building as high as possible.

Single or Double Circuits, Double Circuits more difficult to defeat by ‘jumpering’.Includes any of the various recognized form of conductor such as conductive foil, open wire lacing, screens and contacts used for protecting windows, doors, transoms, skylights, walls floors etc.

Double circuit means that two distinct and separate wiring circuits are used to protect a particular object (door, wall, etc). single circuit wiring uses only one set of protective wiring. The advantage of double circuit wiring is that the burglar will have more difficulty defeating the system by jumpering and may mistakenly connect one wiring circuit to the other.

Conductive Foil: When glass breaks, foil rips, initiating alarm; usually Single Circuit.

Glass Breakage Detection System: Detects high frequency energy as glass breaks (sound of breaking glass).

Wire Lacing: Taut copper wire around perimeter, when broken initiates alarm; Double Circuit.

Wired Screens: Placed over window, limits movement 2”, more will initiate alarm; Double Circuit.

Contact Switches: Detects movement between door & frame 2”:
1) Magnetic Contacts: Contact block (frame) with switching element and actuating block (door) with magnet. When door closed, magnet holds switch in closed (normal) position. When open, magnetic field removed, switch transfers (crosses-over) to another contact, initiating alarm. Alarm can be defeated by placing a magnet on contact block when door opened.
2) High Security Contact Switches (Balanced Magnetic Switches): Like above but contact block has a second magnet; when door closed 2 magnets balance switch, out of balance when door opened. If 2nd magnet introduced in vicinity of contact block, still initiates alarm.
3) Lever Operated: Initiates alarm if door of vault opened or vault door bolts removed.
4) Plunger Operated: For safe or vault doors.
5) Vibration Operated: Supplemental protection for walls, ceilings, glass.
6) Tilt-Operated Mercury Switch: Protects horizontally-pivoting windows.
7) Rod-Operated: For night depositories; spring-tension rod against faceplate.

1) Magnetic Contacts: Contact block (frame) with switching element and actuating block (door) with magnet. When door closed, magnet holds switch in closed (normal) position. When open, magnetic field removed, switch transfers (crosses-over) to another contact, initiating alarm. Alarm can be defeated by placing a magnet on contact block when door opened.

2) High Security Contact Switches (Balanced Magnetic Switches): Like above but contact block has a second magnet; when door closed 2 magnets balance switch, out of balance when door opened. If 2nd magnet introduced in vicinity of contact block, still initiates alarm.

Lever Operated: Initiates alarm if door of vault opened or vault door bolts removed.
Plunger Operated: For safe or vault doors.
Vibration Operated: Supplemental protection for walls, ceilings, glass.
Tilt-Operated Mercury Switch: Protects horizontally-pivoting windows.
Rod-Operated: For night depositories; spring-tension rod against faceplate.

Trap (Trap Loop): A conductor fastened between the building structure and a screen, wired panel, fan etc. such that the two cannot be separated without breaking the conductor and setting off the alarm.

Floor Trap: Supplements perimeter alarm protection; the floor trap cord is usually located across an approach area and the cord is 6-24” above floor at approach area; intruder trips and pulls plug, initiating alarm.

Pressure (Floor) Mat: Pressure sensitive mat used for commonly traveled paths such as staircases and passageways Inexpensive & reliable; undetected under mat.

Photoelectric (Beams): Transmitter (light source) & Receiver (photocell); if beam is broken (de-energized Double Circuit), initiates alarm. Can use light source to defeat alarm unless infrared light used or beam is stacked or synchronized. Beam is 18-36” above floor. Beam can be criss-crossed, or use mirrors too.

Detects changes in amount of infrared energy (at human body temperature 37ºC, 98ºF). Monitored in different zones (alarm initiated if change is in 1 area only, so no alarm for simple temperature change).

Photoelectric beams may be stacked to for a wall of protection which, if interrupted will initiate an alarm.

Infrared Devices: Detects changes in amount of infrared energy (at human body temperature 37ºC, 98ºF). Monitored in different zones (alarm initiated if change is in 1 area only, so no alarm for simple temperature change).

Ultrasonic Detection Devices: Transducers emit & receive sound at 19 kHz (above audible range), a change in the received signal initiates alarm (Doppler Effect), triggered by movement. Newer models have a transceiver (1 unit emits & receives sound). This system is good for detecting burglars who hide in premises.

Advantages

-this method gives good protection against intruders who hide in the premises after hours

-less expensive protection then conventional wiring techniques

-protective field is invisible and inaudible

Disadvantages

-air turbulence created by drafts, or intermittent operation of unit heaters, a/c units can render it difficult to maintain the ultrasonic detection units in a balanced state causing false alarms.

-effectiveness of ultrasonic waves can be reduced by soft paper goods or clothing. ex. systems are inadequate for protecting fur storage vaults due to the absorb ability of the furs.

Microwave Detection System: Transceiver transmits & receives radio signals at over 10,000 MHz, balanced beams. Movement (Doppler Effect) initiates alarm.

-unwanted alarm signals can result when microwave units are located near a sheet metal roof which flexes in the wind.

Walk Tests: Walk through protected area at 1 step/second, tests range of system.

Zoning: For larger areas to be protected; zoning is desirable in order to increase the change of apprehending intruders.

Alarms offer no counter-reaction to intrusion, only alert persons on or off premises; better to have alarm and physical protection.

Detects intruder (magnetic contacts, photo-electric, ultrasonic, infrared, etc.). Area of protection can be outside perimeter, space, spot, safe or vault; complete or partial.

magnetic contacts

photo-electric

ultrasonic

infrared

dual type (ultrasonic and passive infrared and microwave and infrared)

microwave

protective wiring

outside perimeter protection-detects intrusion onto plot of land

partial perimeter protection- protects all accessible windows, doors or other openings

complete perimeter protection- protects all accessible windows, doors or other openings and all ceilings, floors and walls.

space protection- protects entire volume of building or room

spot protection- protects only small area-files, special storage area

safe or vault complete protection- protects the top, bottom, all sides and outer doors of the safe or vault

safe or vault partial protection-protects the outer door or doors and only against opening.

Receives signal from sensing device and further initiates alarm signal, and provides electrical power for alarm. Alarm can be on premises or travels over leased phone lines to an alarm-receiving facility (if exposed lines tampered with, no alarm signal transmitted!).

central station or monitoring station

test the system daily and also allows the user to turn the alarm on and off

A telephone line that transmits signals to off premises alarm receiving facilities- Defined as the ability of the alarm transmitting circuit between the protected premises and the alarm receiving facility to detect and sound an alarm if the circuit is tampered with, either accidentally or intentionally. In other words the telephone line must have adequate supervision

3 Types:
1) Direct Wire: 1 circuit from premises to alarm-receiving facility, alarm quickly traced, but high cost.
2) Circuit (Party Line or Loop): Several subscribers on 1 line, cost lower; coded alarm transmitter at premises identifies particular subscriber.
3) Multi-Plex: Many subscribers, each subscriber has separate phone line (more subscribers possible).

1) Direct Wire: 1 circuit from premises to alarm-receiving facility, alarm quickly traced, but high cost.
2) Circuit (Party Line or Loop): Several subscribers on 1 line, cost lower; coded alarm transmitter at premises identifies particular subscriber.
3) Multi-Plex: transmission of multiple signals over the same telephone line with means for identifying each signal (subscriber). Any change to the status of the subscriber is indicated and recorded.

Open Circuit: Low grade, not suitable protection; no line security. System defeated by cutting phone line; no current flowing through line.

Closed Circuit: Simple: Constant electric current passes through line; if interrupted, initiates alarm. Can be defeated with equivalent independent power source, then cutting line. Includes McCulloh Circuit: Passive system that checks if alarm system is working at opening/closing of premises.

High-Low Balanced Circuit: Harder to defeat. More sensitive to tampering, if current flow goes above its upper threshold or falls below its lower threshold the alarm receiving facility will receive a signal. Can be defeated by inserting devices to substitute the original characteristics of the signal on the alarm wires.

Pulsing Direct-Current System: Offers a higher degree of line security. Control unit turns the steady current on and off at a fixed rate.

Multi-Signal System: Offers two forms of line security, one is a steady fixed current (AC-alternating current) and the other signal is a DC (direct current) superimposed on the line. Bother signals would have to be replaced to compromise the system.

Interrogate Response System (Digital): 2 way communication; signal premises to alarm facility and vice versa, both signals monitored.

Interrogate Response (Random Analog): Best, like above but both signals coded and changing.

Central Station System: Supervised; when alarm received, notifies police and dispatches guards. Minimum requirements of Central Stations listed by ULC (Underwriters Laboratories of Canada).

Monitoring Station System: Like above, no guard response.

Proprietary System: On-premises Central Station (Security Control Centre). Can monitor a large building or groups of buildings from on site.

Local Alarm System: On-premises alarm, costs lower. Watchman or passersby may hear alarm and notify police.

Digital Communicator Service (Telephone Dialer): Uses phone lines to send pre-recorded message or signal to receiving unit; no line security. Usually limited to residential alarms.

Type of protections service

Class of property protection

Grade of service

Extent of protection

Certificate number

Name and address of subscriber

Name of alarm company providing the protection service

Date the certificate was issued and its date of expiration

Classified in consideration of their operation as central station, monitoring station (full service), monitoring station (shared service) or local station. Further grouped according to the class of property they are designed to protect. Each alarm system is also divided into two or more grades depending upon such applicable considerations as the quality of equipment used, the form of signal transmission and the level of service provided by the installing company.

scheduled opening and closing- Central and monitoring station type protections are operated to an opening and closing schedule filed with the station by the subscriber. The opening and closing of the premise, safe or vault is required to take place within this scheduled intervals. Opening in advance and delay will result in an alarm.

guard service, level 1,2,and 3- Guards are employees of the listed alarm company, on receipt of an alarm, the operator at the station notifies the police and the owner and also dispatches a guard to protect the property. Guard response time for level 1 15 mins, level 2 20 mins, level 3 30 mins.

key service- keys to the protected property are held by the alarm company for use by the guard on alarm dispatch as well as for access to the property for repair of the alarm system.

protection category- Refers to the type of property protected and corresponds with the listing classification.

level of line security (1,2,3)- Refers primarily to the resistance to compromise

level 1- Line is continuously supervised

level 2- " " " - in addition a compromise of the connecting line shall be automatically detected within 6 mins

level 3- Same as level 2 plus additional coverage added

The primary difference between central and monitoring station protection service is when the alarm is initiated the police are notified,insured is notified and for central alarm systems a guard is sent out, no guard is sent out for monitoring station. Service response times for central stations is 30 mins and monitoring stations it should not exceed 8 hours.

Central stations- 30 mins

monitory station- Should not exceed 8 hours

local alarm- Not to exceed 48 hours

installation no. 1- Complete protection of all accessible openings leading from the premise including windows, doors, skylights

installation no. 2- Everything in level one plus protection of all inaccessible movable openings

installation no. 3- Includes everything included in level two plus the protection of all party ceilings, floors and party walls

installation no. 4- Highest level of protection, include everything in level 3 plus complete protection for all ceilings, walls and floors enclosing the premises.

Openings- Any point which entry can be gained. This applies to any opening whether fixed or movable.

Party walls- A single wall separating two separate premises, unless it is more the 200 mm of concrete or the equivalent.

Roof- Horizontal supporting surface at least 6' in width

Ledge- Horizontal supporting surface less than 6' in width

Accessible opening- Means a window, door, skylight or other opening.

Inaccessible opening- Any opening not considered to be accessible.

Complete protection- protecting with acceptable devices the top, bottom, all sides and outer doors of the safe or vault

partial protection- protecting with acceptable devices for outer door or doors, but only against opening.

The value of cash and valuables to be protected determine the degree of security a safe should provide.

Electric drill- Most frequent used in safe burglary, compact, easily obtainable and relatively quiet in operation. A degree of skill and knowledge of the safe construction is required to be successful.

Common hand tools- Includes sledgehammers, crowbars, chisels. Easily obtainable and portable, brute force require, minimum skill.

Explosives- Effective in the hands of experienced professionals. Easily obtained and portable but dangerous to handle. Considerable expertise is required.

Acetylene torch- Can burn a hold through 1" of steal in 45 seconds and a man sized hole in approximately 3 mins. Not portable, produces smoke and requires experience in its use.

Thermic lance- Or burning bar, produces temperatures as high as 10,000 'F and will melt concrete easily. Not portable, produces smoke and noise while in operations.

Fire resistant- constructed to resist and retard the penetration of heat and to protect paper records from destruction by fire.

Burglar resistant- or money chest are designed to resist the safe crackers efforts and to protect cash and valuables from loss to burglars.

Class 1- Fire resistive safe or steel container with a combination lock.

Class 2- Designed for low commercial cash risk. Minimum requirements call for a 1" steel body and 1.5" steel door with a combination lock.

Class 3- Refers to a burglar resistant safe suitable for average cash risks, providing limited or moderate degree of protection against attack by comm tools such as drills, sledges and crow bars. To be eligible for a class 3 rating the safe should bear a ULC DR label or UL TL 30 label

Class 4-Burglar resistant safe designed to offer a moderate degree of protection against tools and cutting torches. Must bear the following labels

ULC (UL) TRTL 30 TR 30 or X60

Class 5- Burglar resistant safe designed to offer a high degree of protection against expert attack by commonly used tools. To be class 5, label must show-

ULC TR60 ULC TRTL60 TXTL60 TX60

DR- Drill

TL- Tool

TR- Torch

TX- Torch and explosives

The amount of time each class (A,B,C) can be exposed to a furnace fire and the temperature of said fires.

Group 1- Offers a choice of at least $1mm combinations but must be highly resistant to expert or professional manipulation. considered suitable for use on burglar resistant safes

Group 2- Offers a choice of at least $1mm combinations and is reasonably resistant to unauthorized opening. Considered suitable for use on FR safes.

A third group, IR offers the same features as group 1 but must also be resistant to xray.

thermo acoustic alarm- equipment is installed on the inside of safe, has a vibration detector which is sensitive to both vibration and audio signals from hammering, explosions or drilling of the safe. Has thermal detector sensitive to increased temperatures that occur if safe is attacked by torches. Will also detect the opening of safe and unauthorized use of combination lock.

wired cabinet- Wired or laced wooden box which surrounds the safe, if attacker cuts open box or forces apart an alarm will be initiated.

capacitance alarm-An electronic system that sense the approach of a human body, and an alarm is initiated. Sensitivity can be adjusted to detect an intruder approaching a protected item or to a lesser amount that requires the intruder to actually touch the item.

Dual Custody’ Safes: 2 people required to open safe (separate keys or combinations).

Depository Safes: Deposits through slot, pickups by armed guards, & dual keys.

Time Locks: Safe opens at times corresponding with security pickups.

Time Delay Locks: 20-30 minutes between when combination dialed & safe opens, increases time for robber to be caught.