Which endorsement to a Commercial Crime policy protects a bank against legal liability for customers' property in safe deposit boxes?

The endorsement that protects a bank against legal liability for customers' property in safe deposit boxes is the Safe Depository endorsement. This specific endorsement is tailored to cover the bank's liability in the event of loss or damage to the contents of safe deposit boxes, which are entrusted to the bank by its customers.

This coverage is important because it addresses the unique risks associated with safe deposit boxes, including potential theft, damage, or misplacement of the items stored within them. Banks are obligated to take reasonable care of these items, and this endorsement can help protect them financially should they face claims from customers seeking recompense for lost or damaged property.

Understanding this endorsement is crucial for insurance professionals, as it allows them to appropriately advise banking clients on the types of coverage necessary to safeguard both the institution and its customers. Additionally, this endorsement’s specific focus on safe deposit security distinguishes it from other broader crime coverage types, ensuring that the specific needs of banks and their customers are met effectively.