If your business stores valuables, sells expensive goods, or uses high-end equipment, then unfortunately your business may be the next target for thieves. It’s not unusual for a business owner to overlook theft in their small business insurance policy. In high crime areas such as Chicago and Detroit, theft coverage may be necessary to adequately protect your small business.
Theft Coverage – Small Business Insurance
Before we get to whether or not business insurance covers theft, There are four types of theft your small business may face.
A burglary involves illegally entering your place of business to commit theft. This can include unlawful entry without force, or more commonly, forcible entry. This can include someone breaking-in overnight, commonly thru a window, the roof, or the popular smash-and-grab technique.
A robbery is simply a forced theft of property or money under the threat of violence.
Employee theft is the theft of an business’ assets without permission. While money is the most common asset stolen from a small business, others include time, supplies, merchandise and even company data.
Identity theft is a rapidly increasing form of theft where a person obtains personally identifiable information. This can include social security numbers, credit card details, bank account information, etc.
Does Business Insurance Cover Theft?
There are three policy forms of property insurance and each has it’s specific scopes of coverage.
To summarize, a Basic and Broad Form property insurance policy contained are named perils policies. Named perils basically means that particular coverages MUST be named in the insurance policy to be covered. A Special Form insurance policy covers all perils, unless excluded.
To determine whether or not your insurance policy covers theft, take a look at your insurance policy declarations page. One of the three policy forms will be listed on this page and will help you to obtain a deeper understanding of your policy coverage.
Another important part of your insurance policy to review in order to determine whether or not your insurance policy covers theft is the policy exclusions section. An exclusion is a policy provision that eliminates coverage for certain types of risks.
If there is still doubt or uncertainty after analyzing your business insurance policy, contract your insurance agent for detailed clarification.