DEFINITION of 'Mercantile Safe Burglary'

Insurance coverage for money, securities, and other assets that are stolen from a safe or vault. Mercantile safe burglary insurance is an outdated form of insurance coverage that was purchased by businesses who used safes, and was included in commercial property insurance policies.

BREAKING DOWN 'Mercantile Safe Burglary'

Before the rise of electronic payments, businesses conducted most of their transactions in cash. This cash, along with other valuables that the business wanted to protect, was stored in a safe overnight for protection. Safes presented a target of opportunity for burglars who would use tools, explosives, and other means to open them. Because the loss of cash and valuables could severely damage a business’ ability to stay open, merchants and shopkeepers would purchase mercantile safe burglary insurance.

Mercantile safe burglary insurance covers not only the assets that may be stolen from a safe, but also property that may be damaged during the burglary. For example, a thief may use explosives when opening a safe, which may severely damage parts of the building where the business is located. Coverage was limited to the hours after a business was closed for operation.

Insurance companies offering mercantile safe burglary insurance typically charged policyholders lower premiums if they installed security systems, hired security guards, and took other precautions to increase safeguards for their valuables. The policy document required the policyholder to provide in-depth information about the type of safe or vault used, including the manufacturer, serial number, style, and size.

Banks, which also used vaults and safes to store cash and valuables, typically did not purchase mercantile safe burglary insurance. Instead, they purchased bankers burglary insurance, since this type of insurance extended coverage to daylight hours when a robbery may occur.

Mercantile safe burglary insurance fell out of favor as the insurance industry changed the way it provided coverage for commercial property insurance.

  1. Classified Insurance

    Insurance coverage provided to a policyholder that is considered ...
  2. Total Insurable Value

    Total insurable value is the value of property, inventory, equipment, ...
  3. Assigned Risk

    A risk that an insurance company is required to provide coverage ...
  4. Commercial Lines Insurance

    Commercial insurance lines help keep the economy running smoothly ...
  5. Cover Note

    A cover note is a temporary document issued by an insurance company ...
  6. Assessable Policy

    A type of insurance policy that may require the policyholder ...
Related Articles
  1. Insurance

    Do You Need Casualty Insurance?

    Find out how different types of coverages can protect you and which policy is right for you.
  2. Insurance

    Insurance Coverage: A Business Necessity

    Don't go to work without this policy in place - especially if your work is in your home.
  3. Managing Wealth

    6 Insurance Policies That Protect the Wealthy

    Here are six types of insurance that the wealthy use to protect their assets.
  4. Insurance

    4 Reasons Why Waiting To Buy Life Insurance Is a Bad Idea

    Understand the benefits of applying for and securing life insurance coverage while you are young and healthy, and learn the cost of waiting to get coverage.
  5. Insurance

    Add-On Insurance: Do You Need It?

    Insurance is important in certain situations, but there isn't always a need.
  6. Insurance

    For Top-Notch Insurance Coverage, Compare Quotes

    Find out how to use and compare policy options to get the best coverage at the best price.
  7. Insurance

    Understanding Your Insurance Contract

    Learn how to read one of the most important documents you own.
  8. Insurance

    What Is and Isn't Covered by Homeowner's Insurance

    Understanding what your insurance covers can be confusing. Learn what almost all insurance policies have in common so you're prepared if disaster strikes.
  9. Insurance

    How to Protect Your Income No Matter What

    What does it mean to insure your income? Here are a variety of ways to do it and some insights into when it might make sense to invest in income insurance.
  1. How does the insurance sector work?

    Learn more about the insurance sector, a historically safe place for equity investors and the home of some of the largest ... Read Answer >>
  2. What are some examples of when insurance bundling is a bad idea?

    Learn about situations where insurance bundling may not be a favorable option. Bundling insurance is often a good idea, but ... Read Answer >>
Hot Definitions
  1. Net Present Value - NPV

    Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows ...
  2. Return On Equity - ROE

    The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability ...
  3. Bond

    A bond is a fixed income investment in which an investor loans money to an entity (corporate or governmental) that borrows ...
  4. Whole Life Insurance Policy

    A life insurance contract with level premiums that has both an insurance and an investment component. The insurance component ...
  5. Compound Annual Growth Rate - CAGR

    The Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer ...
  6. Capital Asset Pricing Model - CAPM

    A model that describes the relationship between risk and expected return and that is used in the pricing of risky securities. ...
Trading Center