Question 1

Does every commercial property policy have a Protective Safeguard Endorsement?

Accepted Answer

No. The PSE is only added when your building has an existing fire protection system. If your property has sprinklers, alarms, or suppression systems, your policy likely includes the endorsement. Confirm by reviewing your policy declarations page and the attached endorsement forms at your next renewal.

Question 2

Can a claim be denied even if the fire protection system worked during the fire?

Accepted Answer

Yes. Courts have upheld PSE denials even when the system functioned during the loss event. If the system was not inspected and maintained on the required schedule, the denial stands regardless of how the system performed on the day of the fire. Compliance is measured by documentation, not by outcome.

Question 3

What is the difference between a P-1 and a P-2 designation?

Accepted Answer

P-1 covers automatic fire suppression systems, specifically sprinkler systems. P-2 covers automatic fire alarm systems. Many commercial properties carry both designations. Each carries its own distinct maintenance schedule and inspection frequency requirements under NFPA standards. Carrying both means meeting both schedules -- they are tracked separately.

Question 4

Does the 48-hour rule apply to planned maintenance shutdowns?

Accepted Answer

Yes. Even planned, scheduled maintenance that takes a system offline triggers the 48-hour notification requirement. Many policyholders assume planned shutdowns are exempt -- they are not. The rule applies to all impairments regardless of whether they are emergency or scheduled. If notification is not sent within 48 hours and a loss occurs, coverage is denied.

Question 5

Can a PSE denial be appealed?

Accepted Answer

Yes. A denial can be disputed through the formal claims process, through appraisal, or through litigation. A public adjuster can represent your interests in the dispute. However, the burden of proving compliance with the maintenance schedule falls on the insured, not the insurer. Without documentation of inspections and notification history, appeals face steep odds regardless of the legal avenue pursued.

Question 6

What does "failure to maintain" actually mean under the endorsement?

Accepted Answer

It means no documented evidence that the system was inspected and serviced on the schedule required by the endorsement and NFPA 25. It does not require proof that the system was broken or malfunctioning. The absence of inspection records is sufficient for the denial to stand. The system could have been in perfect working order on the day of the fire -- if the records are missing, the claim can still be denied.

Author: Gordon Coyle

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