Required UL Classification For Vaults

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Question:

This question relates to the UL classification (rating) on vaults. We are looking to place some stand alone safe deposit box vaults in some of our branch locations and we were wondering what UL rating is required (TL15 or TL30). Additionally, if you could cite us the regulation covering this requirement, we would be most appreciative.

Answer:

The Bank Protection Act of 1968 use to have requirements for the vaults. When the act was revised this section of the regulation was dropped as the government couldn’t keep up with the technological changes. Underwriter laboratories have rated vault construction and TL 15 states that it would take a professional 15 minutes to break in. To my knowledge there are no regulations stating the exact requirements for your installation.

The one thing banks many times forget is to consult with their insurance company. You should contact the Position Bond (old Blanket Bond) Underwriter and discuss this situation with that person. Depending on what you purchase you could obtain credits leading to a reduction with your Position Bond Premium. Most financial institutions never discuss problems with the carrier and the underwriter will charge a higher premium to cover perceived risk. If the underwriter knows the institution your premiums at renewal may not increase as much as the bank across the street.

First published on BankersOnline.com 3/17/03