Does business insurance cover theft?
Business insurance can cover theft, but your policy and the nature of the crime matter. Whether it's a break-in, cyber breach, or internal act, theft can disrupt your work. Thankfully, the right protections can help you recover quickly and keep your business moving forward.
Explore Progressive Commercial's business theft insurance options to find coverage that fits your needs and protects your bottom line. When you're ready, you can start a quote online or call one of our experts.
What kinds of theft does business insurance cover?
Business insurance protects against different types of theft depending on what is stolen and who steals it. Most policies divide theft coverage into three main categories:
Theft of property and inventory
Small businesses rely on physical assets to keep the day-to-day operations running smoothly. If your business location is broken into and essential items such as inventory, equipment, computers, and furniture are stolen, it can cause unexpected downtime.
Commercial property insurance can help cover these losses by paying to repair or replace stolen items, up to your policy limits.
Employee theft and dishonesty
Theft committed by employees can be harder to detect than an obvious break-in. These incidents may involve stolen money, inventory, or other business property.
To help protect against these risks, you may need an employee dishonesty endorsement. Progressive Commercial offers this coverage as an add-on to a business owners policy (BOP), which can help cover losses from acts like forgery or unauthorized fund transfers.
Cyber incidents and data theft
Not all theft is physical. Cyber incidents can involve stolen customer data, financial information, or other sensitive business records. In fact, recent studies show that 43% of all cyber attacks target small businesses, and the average cost of a data breach is over $3 million.
Cyber insurance can be an important part of your business insurance theft coverage, helping cover losses from data breaches, ransomware, and certain types of fraud, such as wire transfers.
What types of business insurance protect against theft?
Once you understand your specific risks, the next step is choosing the right type of business insurance to help protect against theft. Key coverages include:
Commercial property insurance
Commercial property insurance is often included in a BOP. This coverage can help repair or replace stolen or damaged business assets, such as inventory, equipment, machinery, fixtures, furniture, and computers. When filing a claim, you'll probably need to include a police report. You might also need to show proof of forced entry, such as a broken door or window.
Inland marine insurance
Inland marine insurance, also known as tools and equipment coverage, helps protect your gear when it's off-site or in transit. This coverage is a good fit for businesses that regularly move tools or store equipment away from their primary location.
For example, if your tools are stolen from a truck at a job site, inland marine insurance could help cover the cost to replace them. You can typically add this coverage as an endorsement to a BOP or general liability policy.
Commercial crime insurance
Commercial crime coverage fills an important gap in property insurance by extending protection to your money and securities. Whether you encounter employee dishonesty, check forgery, or computer fraud, this coverage helps you recover financially and move forward quickly.
Cyber insurance
Cyber insurance can protect your business from digital threats like data breaches, ransomware attacks, and wire transfers. These incidents can involve sensitive customer data, financial information, or other business records. A cyber insurance policy can help pay for data recovery, investigative services, legal costs, and more.
Understand theft-related sublimits
Be sure to review your policy to see what sublimits you may have. A sublimit is a cap on what your policy will pay for specific types of property or losses, even if your overall policy limit is higher. For example, your commercial property coverage might have a $500,000 total limit but only cover up to $10,000 for stolen cash and securities.
When getting a quote, ask about sublimits for high-risk items like cash, tools, or inventory to make sure your coverage matches your needs.
Does business insurance protect against other crimes?
Business insurance can protect you from other criminal acts besides theft, such as vandalism and property damage. For example, if windows and doors are damaged during a break-in, your commercial property coverage can pay to repair them.
Ready to explore your options? You can review coverage details online and get a business insurance quote in just a few minutes. If you'd rather talk it through, a Progressive Commercial expert can help you find the right protection for your business.
What are common misconceptions about business theft insurance?
Many business owners find that their coverage works differently than expected when they file a claim. Here are five common misconceptions about business theft insurance and what to know instead:
Misconception: My business insurance automatically covers employee theft.
Reality: A standard business insurance policy typically doesn't cover employee theft. To help protect against these risks, you may need an employee dishonesty endorsement. Progressive Commercial sells coverage as an add-on to a business owners policy.
Misconception: Any theft is covered as long as something was stolen.
Reality: Coverage often depends on the circumstances and the terms of your policy. In some cases, insurers may look for clear evidence of theft like signs of a break-in or documentation like surveillance footage or a police report.
Misconception: My commercial property insurance covers all stolen items equally.
Reality: While commercial property insurance covers stolen physical assets like equipment and inventory, it may have separate limits, called sublimits, for things like cash, securities, and other highly valuable items.
Misconception: As long as items are on my business property, they're covered if stolen.
Reality: Insurers expect you to take reasonable steps to protect your property. Business theft insurance policies may include requirements for securing valuable property, such as using locks, safes, lighting, or alarm systems. Review your policy closely to understand what's expected.
Misconception: Theft insurance covers all my losses, including lost revenue while I recover.
Reality: Business theft coverage typically focuses on stolen items themselves and may not include lost income while your business recovers. For that type of protection, you may need business interruption insurance, which is included as part of a BOP.
Filing a theft-related business insurance claim
If your business experiences a theft, take these steps to ensure your claim gets processed smoothly:
• File a report: Notify the police to create an official record of the theft. This documentation can help your insurer verify the incident and move forward with your claim.
• Document the loss: Take photos or videos of missing items and any damage. Create a detailed inventory and gather receipts or other proof of ownership.
• Notify your insurer: Contact your insurance company as soon as possible and follow their process for starting a claim and submitting documentation.
• Work with a claims adjuster: A representative from your insurer may contact you to assess your loss and any damage related to it. Be prepared to provide documentation and answer questions about the incident.
Getting business theft coverage through Progressive Commercial
Theft can range from physical property to digital data. That's why it's essential to have the right combination of insurance to make sure you're fully protected. At Progressive Commercial, our experts can tailor a business insurance policy that's right for the risks you face. Call us or start a customized quote today.
Frequently asked questions about business theft insurance
Does general liability cover theft?
No, general liability insurance won't cover theft of your property. Liability coverage protects your business if it causes damage or harm to others.
What type of retail theft or shoplifting insurance should store owners have?
Retail shops need commercial property insurance to protect their inventory from theft, whether it's during business hours or an overnight robbery. You may need higher coverage limits to cover the value of your goods.
Does business insurance cover robbery?
It can, depending on the type of coverage you have. For example, if your restaurant is held up at closing time and the robber demands cash from the register, commercial property insurance can help cover your losses. Talk to an expert at Progressive Commercial to get the protection you need for your business.
