Discovering that an incident of theft has taken place at your commercial business can be unsettling and disruptive for everyone. Navigating the aftermath of theft is important for effective recovery and business continuity. It also includes the process of filing an insurance claim. Explore how to file an insurance claim for business theft, including the steps you need to take immediately.
The First 5 Steps to Take Immediately After a Business Theft Incident
Use this checklist immediately after discovering a theft has occurred at your business. These five steps are critical for ensuring safety as well as supporting a successful insurance claim process:
- Secure the premises: Prevent further loss and make sure all employees on-site are safe. Leave everything untouched until after law enforcement arrives.
- Document the scene thoroughly: Before cleaning or moving anything, use your phone or a camera to take extensive photos and videos. Get footage of any damage, entry points, broken locks, and damaged fencing. Keep notes on what’s missing or damaged and gather witness statements if possible.
- Contact law enforcement: Call the police and report the theft right away. An official police report is required for business theft insurance claims and will contain critical information for your insurer. Be sure to obtain the report number.
- Notify key company personnel: Alert senior leadership, your security manager, legal counsel, and the building owner if you’re leasing. By informing all relevant parties, you can enable a coordinated response.
- Preserve all potential evidence: You can only start cleaning up when law enforcement has completed their investigation and collected evidence. Only make emergency repairs to prevent further loss or danger, and document these repairs for your insurance provider. Retain any physical or digital evidence, like security camera footage.
A Step-by-Step Guide to Filing Your Business Insurance Claim
It’s essential to notify your insurance company about the incident as soon as possible. Once you’ve completed the previous steps, follow this process to file a business insurance claim and recover after theft.
1. Locate and Review Your Insurance Policy
Find your current insurance documents and read the fine print. Identify your types of coverage, covered perils, the policy’s limits, and any exclusions. Make notes of any questions or concerns to share with your insurance agent or broker. Reading through your policy helps set realistic expectations and prepares you for questions that may arise during the claims process.
2. Contact Your Insurance Provider
After obtaining the police report, notify your insurer. Many policies have strict deadlines for filing a specific claim. Find out how they want the claim initiated via a portal, phone call, app, or in person. This quick action helps prevent processing delays. Your insurer will then guide you through the next steps and inform you of the required documentation. They may also instruct you on what emergency repairs you can complete before the adjuster visits.
3. Create a Comprehensive List of Stolen or Damaged Property
Your insurance provider will likely need details of the incident, a list of stolen items, their estimated value, and any evidence you have. For each missing or damaged item, include:
- The name or description, model, and serial number, where applicable.
- The purchase date and cost or current value.
- Any receipts, invoices, or photos showing proof of ownership and value.
If you discover any additional missing property later on, update your list and notify the police and your insurer. This is crucial for maximizing your payout and ensuring that your claim aligns with the police report.
4. Prepare for the Adjuster’s Site Visit
An insurance adjuster may be assigned to evaluate the physical loss and verify the claim. Be prepared to provide access to all affected areas, present your documentation, and address any questions. Avoid performing permanent repairs until the adjuster has inspected the damage, unless they’re necessary to prevent further loss.
The adjuster may also request quotes from contractors or ask for additional evidence. If your claim is complex, consider consulting a legal expert or professional contractor for support.
5. Keep a Detailed Communication Log
Record every phone call, email, and meeting related to your claim. Note the date and time, and write a summary of what was discussed. This log helps you track the claim’s progress, avoid misunderstandings, and provide evidence if follow-up steps or disputes arise.
6. Understand and Complete the Proof of Loss Form
Shortly after you file the claim, your insurer may ask you to submit a proof of loss form. This legally binding document summarizes the nature and value of your loss, all supporting documentation, and your sworn statement that it’s accurate and complete.
Double-check every detail before submitting. Errors or missing information can delay or jeopardize your settlement. Your insurance adjuster can help clarify any questions you may have when completing this form.
After You’ve Filed: What Comes Next
After you submit your insurance claim, the insurer reviews your documentation and the evidence you’ve provided. They might re-inspect the site, request additional proof of ownership, or require documentation of previous preventive measures taken. Your claim’s status will depend on how thoroughly you’ve documented everything and how closely your loss aligns with the terms of your policy.
Filing a claim is the start of a negotiation and documentation process, not a guarantee of payment. Insurers may deny or underpay claims if you fail to prove ownership, fail to show evidence of forced entry, or fail to adequately demonstrate current market value for stolen goods. Preventive maintenance on your property is sometimes required to qualify for full coverage. Depending on the type of insurance, some losses may not be covered. Your policy may have exclusions, such as theft by owner, unforced entry, specific items, or off-premises incidents.
If your claim is denied, the insurer must send a written explanation stating the reasons. If you disagree or have more supporting evidence, you have the right to appeal. Provide additional documentation and, if needed, consult with an insurance attorney to strengthen your case.
If your claim is approved, your payment may be based on either the repair or replacement cost, or the actual cash value of the items, depending on your policy. The insurer will provide details on how they will issue the payment, and you can then begin the repairs or replace the stolen items.
Stop Theft Before It Happens With AMAROK
While filing an insurance claim for business theft helps you recover losses, the process is costly, stressful, and time-consuming. The post-theft response takes your focus away from running your business. Every insurance claim is a reaction to loss: damaged property, stolen assets, and a disrupted business routine.
The best strategy is to prevent external theft before it happens. Theft prevention is the most effective way to avoid operational downtime, financial loss, and the administrative headaches associated with the claims process.
AMAROK is the leader in proactive perimeter security, specializing in electric fencing, integrated cameras and remote monitoring, and alarm-based lighting systems. Our tailored solutions have been proven to prevent 99% of external theft. With our security-as-a-service model, you pay one manageable monthly fee and get access to our industry-leading solutions, expert support, and repairs and maintenance as needed.
Don’t just recover from theft. Prevent it once and for all. Contact AMAROK for a free expert threat assessment and start securing your perimeter today.
