That is terrible, given the quality of the lock and the time of the day. Was your bike parked there for very long time (enough for someone to notice and cut the lock)? There should be a lot of people around?
This is my usual lock-up location for the past year. I locked it up around 10:45 AM, went inside. I went out for lunch around 12:30 and the surly was still there. I came back around 1:30 and it was gone. The U-Lock was laying on the sidewalk.
Thanks for the thoughts. Hopefully the insurance will be helpful. Never expected a Kryptonite lock to be cut with such ease and no witnesses.
The lock was a few years old, and registered to a different bike, so I don't think the anti-theift claim will be able to be made through Kryptonite.