What loss is covered under the Securities Deposited with Others Endorsement?

The Securities Deposited with Others Endorsement provides coverage specifically for the disappearance of securities deposited with third parties. This type of loss relates to situations where securities that have been entrusted to others cannot be located, indicating a potential risk that is not commonly covered under standard insurance policies.

While theft and destruction of securities may occur, they generally fall under other types of coverage, such as property insurance or specific crime insurance policies, rather than this particular endorsement. Loss of value in securities, while a significant concern, does not typically constitute a physical loss and thus is not covered under this endorsement, which focuses more on the physical disposition of the securities themselves.

By concentrating on the disappearance, the endorsement addresses the procedural and operational risks businesses face when handling important financial instruments. This focus is crucial for businesses that place securities in the custody of banks or other institutions, ensuring protection in the event that those securities are lost or cannot be accounted for.