What endorsement allows a pawn shop owner to reduce monthly premiums through security measures?

The correct choice relates to the Protective Safeguard endorsement, which is designed specifically for policyholders like pawn shop owners. This endorsement provides premium discounts in exchange for implementing certain security measures to reduce the risk of loss. These may include installing alarm systems, security cameras, or employing security personnel.

By reducing the likelihood of theft or vandalism, the pawn shop owner not only enhances the safety of their assets but also qualifies for lower insurance premiums, making it a beneficial arrangement for both the insured and the insurer. The essence of this endorsement is to encourage proactive risk management strategies that lead to a safer operating environment, aligning the interests of both parties.

Understanding this aspect is crucial for adjusters, as it showcases how insurance products can be tailored to incentivize better security practices in high-risk business environments.