You might worry about something like a fire or severe storm damaging your business. Sure, that’s a possibility, but there are a lot of other losses that are much more likely to happen every single day. These include the risks of theft and vandalism. A thief might strike both during and after normal business hours, and any instance of theft can be a very unsettling (not to mention costly) experience. The good news is, you can often use your commercial property insurance to your advantage in these cases.
Here’s how it works.
Business’ property insurance is supposed to help them recover from unexpected or unavoidable losses on the property. Theft is usually among such occurrences. However, speak to your agents about the limits and exclusions that your policy might include.
Theft in Businesses
It doesn’t matter if you own a jewelry store, a bookstore or a convenience store—theft can occur in any business at any time.
The thief might make off which numerous items of value. Of course, these might include products, stock and critical equipment. Additionally, they might steal hard cash on hand within the business. Furthermore, if they steal items containing sensitive or private information, or property belonging to others, like your clients, that’s a loss to more people than just the business.
In addition, theft often is an act committed by those who don’t normally have access to the business. In some cases, it’s easy for someone to shoplift. However, in other cases, they might do significant property damage, which is more or less vandalism. Therefore, you’ll probably have to make some repairs to the business in order to make the business safe again.
How Your Property Insurance Can Help You
Primarily, coverage can pay to help you receive a settlement for items lost during the theft. Therefore, if can help you pay for items like electronics, furnishings, inventory in the business and other important materials. Additionally, it can help you pay for repairs to the building or other items that the thief damaged during the commission of the act.
Your policy will include coverage limits, however:
You should insure the property for the full value of your buildings, equipment and other possessions. Remember, however, that the insurer might pay only certain amounts of money for certain damage.
Sometimes, an insurer will compensate you for the replacement cost of lost items or damage. This coverage pays you for the value of an item at its new cost. Other items might only be eligible for an actual cash value settlement. This is the cost of an item after it depreciates over time, which is not the same as a new item.
Keep in mind, deductibles will apply, so your insurer will subtract this amount of money before they issue your final policy settlement.
For help choosing limits that are appropriate for your property value, speak to your insurance agent.
Maximizing Your Coverage
Sometimes, your basic commercial property insurance won’t cover all items lost in theft instances. To make sure your policy offers enough protection, consider taking some additional steps:
You can insure certain items as scheduled equipment on the policy. Coverage will provide specific coverage limits to items of high value.
Ask your agent if the policy contains money and securities coverage. This coverage applies to money, checks and other financial documents stolen in a theft.
There is a chance that employees of the business might actually be the thieves. See if your policy offers employee dishonesty coverage, which can apply when internal theft occurs.
As soon as theft occurs, immediately report the incident to police. Have them take a report of all of the items damaged and lost in the theft, then call your commercial insurance agent. We can help you start to file the claim, and then will work with you to reach an appropriate settlement.