You’ve got insurance, so it’s no big deal if your property is broken into and items are stolen, right? Not so fast. Even if you have commercial property and/or business insurance, getting your theft losses covered can be tricky … if they’re covered at all.
Does commercial property insurance cover theft?
Many standard commercial property insurance policies do not cover theft, and others exclude theft of certain items. If you’re not sure whether your current insurance policy covers you in the case of a theft-related loss, read the fine print in your policy or give your insurance agency a call. This is an instance where the fine print matters, and it’s better to know now than later.
Theft claims are often denied
Insurance companies are notoriously hard to deal with. After all, they don’t make money by paying out every claim that’s filed. There’s a long list of reasons why your commercial property insurance might deny your theft claim, including:
· You don’t have proper documentation that the items were ever in your possession or were actually stolen.
· You can’t provide evidence of an actual break-in. This can occur if an employee left a door or gate unlocked and a criminal walked right in, leaving no signs of forced entry.
· You can’t provide an accurate valuation of the items stolen. · Your organization did not perform proper preventative maintenance on your perimeter security fence, gates, locks, windows, doors or security system.
You may not have the right kind of insurance
The world of commercial property insurance can be complicated, it’s no wonder business owners don’t know if they’re covered for theft until it’s too late.
Here are the different types of commercial property insurance. You likely need a combination of policies to protect your business.
To ensure you’re properly covered here’s a breakdown of the policies:
- Commercial property insurance – Commercial property insurance covers the physical assets of your business such as your building, office equipment, and inventory.
- Professional liability – This type of insurance covers professionals from errors and omissions that cause damage to another party.
- Commercial auto – Commercial auto insurance covers vehicles used in service to your business. It is needed for both your company vehicles and for any time a privately owned vehicle is used for business purposes.
- Commercial umbrella insurance – Commercial umbrella insurance adds an extra layer of protection by covering losses that exceed the limits of your current insurance coverages.
- Employment practices liability – This type of insurance protects your business if you are sued for a violation of labor practices such as discrimination or wrongful termination.
- Workers’ compensation insurance – Workers’ comp helps you provide pay and medical benefits to workers who have been injured on the job.
- Cyber liability – Cyber liability covers your company from damages resulting from data breaches and cyber security problems.
- Business interruption insurance – This type of insurance covers lost income as a result of a covered event such as a fire or storm damage.
Is your property a hot target for thieves?
Certain locations, business types, and inventory attract thieves more than others, leading to higher incidences of theft. You’ll need to keep this in mind when choosing what types of insurance to purchase and coverage levels. Thieves often target businesses that:
- Are in a remote location
- Include vacant buildings are often full of valuable metals like copper pipes
- Store valuable inventory such as car parts, jewelry, and electronics
- Have a large physical footprint, which means more areas are likely to be unmonitored
- Have experienced a recent fire or flood and are not properly secured
Proactively preventing theft is key
Companies that experience theft not only lose the value of the items stolen, but experience revenue loss due to downtime as well as reputational damage. Add that to the hassle of dealing with an insurance company, and it’s much easier to prevent theft at your business in the first place.
AMAROK helps companies be proactive about their security measures so they can keep their businesses, reputation, and productivity safe. Contact us today to receive a FREE Threat Assessment, so you will know for sure if you’re doing enough to keep thieves out of your profits.