When running a business, safeguarding your business assets is one of your top priorities. But what happens if theft occurs—does insurance cover theft? And how can you ensure your business is protected?
This blog will break down the types of insurance policies that may include theft protection, what’s typically covered, limitations to be aware of, and steps to take if theft happens.
Does Insurance Cover Theft? Some Do:
When it comes to theft protection, several business insurance policies may have you covered. Here’s an overview of the most common options that are likely to cover theft:
1. Commercial Property Insurance
Commercial property insurance is a standard policy for protecting your physical assets. It typically covers theft of inventory, equipment, furniture, and other items within your business premises. This policy is a must-have for brick-and-mortar businesses.
2. Business Owner’s Policy (BOP)
A BOP combines several types of coverage into one policy, often including property insurance and general liability insurance. If you’re looking for theft protection, a BOP is a cost-effective option that simplifies the insurance process while covering theft and other risks like fire or water damage.
3. Cyber Insurance
If you think theft only refers to physical items, think again. With the rise of digital threats, cyber insurance has become essential for businesses. This type of policy typically covers theft of sensitive data, financial breaches, and recovery costs after a cyberattack.
4. Commercial Crime Insurance
This specialized policy offers protection against crimes like employee theft, forgery, or fraud. It’s particularly useful for businesses that handle large sums of cash or sensitive transactions.
So, does insurance cover theft under your current policy? If not, you might want to consider adding one of these insurance types for added protection.
What Types of Theft Are Typically Covered?
Now that we’ve covered the policies, let’s address a different question: does insurance cover theft of all kinds? It depends on your coverage, but most plans cover burglary with visible signs of forced entry. As for other types, employee theft is usually covered under commercial crime insurance or as an add-on to other policies, while cybercrime falls under its own policy.
Lastly, theft of inventory or equipment is usually covered under commercial property insurance or a business owner’s policy (BOP). These policies can provide peace of mind, but it’s important to review your specific coverage to know exactly what’s included.
Exclusions and Factors That Affect Theft Coverage
Theft coverage depends on several factors, starting with the type of policy you have. Additionally, your payout might be impacted by whether your deductible or coverage limit has been met. Some policies also require you to take certain steps to qualify for coverage, such as installing security alarms or cybersecurity measures.
It’s also essential to understand any exclusions and limitations in your policy. For example, does insurance cover theft of items left unattended or unsecured? Without specific coverage, it might not. Here are some other common exclusions to be aware of:
- Employee Theft: Without commercial crime insurance, employee dishonesty may not be covered.
- Inventory Valuation: If the claimed value of stolen inventory doesn’t match your financial records, it could lead to disputes in payout.
- Delayed Reporting: Failing to report theft within your policy’s time frame could result in denied claims.
- Vacant Property: If your business closes or moves locations, it’s important to inform your insurance provider to avoid disputes over occupancy.
Review your policy carefully and consult your insurer to fully understand your coverage and limitations.
What to Do If Theft Happens
Theft can be a stressful experience, but following the right steps ensures your claims process goes smoothly. Here’s what to do:
- File a Police Report: Notify law enforcement immediately and obtain a copy of the report.
- Document Everything: From video footage to inventory lists, provide detailed records of what was stolen and how.
- Notify Your Insurance Provider: Report the theft promptly and provide all necessary documentation. If you’re unsure of your coverage, this is the time to ask: does insurance cover theft for this situation?
- Secure Your Premises: Fix any vulnerabilities to prevent future thefts, such as damaged doors or broken locks.
- Consult an Expert: Speak with your insurance agent to review your policy and ensure you’re fully covered for future incidents.
Protect Your Business with Bethany Insurance
So, does insurance cover theft? The answer depends on your policy, but having the right coverage is non-negotiable when protecting your business. Whether it’s inventory, equipment, or sensitive data, theft can disrupt your operations and hurt your bottom line.
At Bethany Insurance, we’re here to help you craft the perfect policy to safeguard your business assets. Don’t leave your coverage up to chance. Contact our specialists today to explore your options and find the peace of mind you deserve.
