Loss of Keys Clause
A special agreement under AHB clause 2.2 that treats the loss of third-party keys, code cards or transponders as property damage and covers the cost of replacing locks and locking systems.
- Clause type
- Extension
- Origin/Market
- DACH – statutory
- Favours
- Insured
- Negotiability
- Negotiable
Standard wordings
- GDV AHB 2016 clause 2.2
Purpose
The loss of property, being a pure financial loss without physical damage, is not automatically covered under liability insurance, but can be included by special agreement under AHB clause 2.2, after which the property damage provisions apply. The loss of keys clause is the most practically relevant application of this extension, covering the loss of third-party keys, code cards or transponders lawfully entrusted to the policyholder.
Effect and limits
Cover typically includes the cost of necessary replacement of locks and entire locking systems, plus temporary security measures pending renewal. Cover generally requires a culpable breach of duty by the policyholder; no-fault protection must be separately agreed. Consequential losses from unauthorised third-party access, such as burglary, remain excluded as a rule unless expressly included.
Negotiation and practice
For facility management, cleaning and property management businesses that routinely hold master keys or access media, the agreed sum insured should be checked against the potential cost of a full locking-system replacement. It should also be clarified whether consequential losses from unauthorised access enabled by the key loss are included in the cover.