Business insurance is designed to help reduce risks, like theft, from disrupting daily operations. Many insurance carriers offer coverage that can help in times of trouble as well as resources to keep risk low. But sometimes, the unexpected can still happen.
For many owners across a variety of industries, business insurance and theft coverage is essential. Learn how customer theft and employee theft are handled when it comes to business insurance coverage.
How does business theft insurance work for physical theft?
It’s crucial to have the right coverage in the event physical assets like hardware, money and products are stolen. Many small businesses qualify for Businessowners policy (BOP) coverage. But if your business has too many employees or too much revenue to qualify for a BOP policy, your company may be a better fit for a Commercial Package Policy (CPP).
When it comes to business insurance and theft coverage, both BOP and CPP insurance offer options for commercial property insurance, the area responsible for theft coverage. Here’s the breakdown of what commercial property insurance covers:
- Physical buildings and properties (walls, roof, permanent fixtures)
- Equipment (computers, tools, hardware)
- Furniture (chairs, tables)
- Inventory
- Cash
No matter the size of your business, where you’re located or the industry you’re in, all companies need commercial property insurance as part of their policy package for adequate theft protection. Important note: General liability insurance is another component of BOP and CPP insurance, but it does not cover theft.
If theft does happen, you can rest assured you’ll have support to navigate the business interruption with Grange. After you submit a claim, commercial property insurance can replace lost income and pay ongoing expenses. This can come in handy if theft forces you to shut down operations temporarily.
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Does business insurance cover theft from a cyberattack or data breach?
It depends on your insurance carrier. At Grange, we understand the need for cyber protection. Cyber protection is included in all eligible BOP and CPP Grange insurance policies. Learn more about our comprehensive cyber coverage.
Is there a difference between customer theft and employee theft for coverage needs?
Business theft insurance can look different depending on the circumstance.
- Did an employee or customer rob the business?
- Was physical inventory stolen? Was data stolen?
- Did a burglar install ransomware?
All of these circumstances involve a different remediation path.
On the customer side, commercial property insurance does cover customer theft. However, commercial property insurance and general liability insurance policies exclude “internal theft,” or theft committed by employees, partners or contractors.
To help businesses protect their physical and digital assets from employee theft, they need one of two types of employee dishonesty coverage. Option one is usually an endorsement that can be added to a BOP policy. Option two is for larger businesses; they may require commercial crime insurance coverage. Talk to your independent insurance agent to learn more.
Tips to prevent business theft
You’ve got a strong understanding of how your business can get assistance after theft. Now, let’s dive into some prevention best practices no matter what kind of buildings or operations you manage.
Retail theft prevention
According to the National Retail Federation (NRF), there are several methods to prevent theft in retail spaces: Utilize technology and deterrents, optimize the store layout, prepare your staff with clear training and procedures and more. Strategy and preparation are on your side to help prevent retail shoplifting.
Warehouse theft prevention
A combination of “people, policy and technology” help keep warehouses and the inventory they hold safe, according to Security Journal Americas. Security cameras and access control, fences on the perimeter of the property, and barcodes on products are just a few ways companies can keep tabs on employees, inventory, and even intruders, if necessary.
Office theft prevention
Like warehouses, you can leverage access control and security cameras to keep offices safe from robberies. Hire security personnel to survey the property including parking lots, building exterior and building interior.
Employee theft prevention
Employee theft is complicated because it stems from the people you put your trust in to represent and conduct your business. Background checks, thorough job screening, video surveillance and an employee tip hotline are just a few of the tools at your disposal to create a trustworthy environment.
It’s also in your best interest to become familiar with the common types of theft that threaten your industry. Create a risk control plan with help from your business insurance carrier.
Follow these steps if your business experiences theft
- Report a claim. You can log in to your MyGrange account or call (800) 445-3030 to get started. You can also call your independent agent to report a claim.
- Take pictures of the impacted area(s) for your records.
- Follow your business continuity plan.
- For Grange customers, track your claim by calling (800) 686-0025.
Insurance for business property and digital assets can go a long way in your time of need. Talk to your independent insurance agent today to learn more.
References:
- National Retail Federation
- Security Journal Americas
- CO by U.S. Chamber of Commerce
Coverages described herein may not be available in all states. Please contact a local independent Grange agent for complete details on coverages and discounts. If the policy coverage descriptions herein conflict with the language in the policy, the language in the policy applies. For the coverage to apply, a claim must be made and reported during the policy period. Scenarios above are not actual claims. The material provided above is for informational, educational, or suggestion purposes and does not imply coverage. WE RESERVE THE RIGHT TO REFUSE TO QUOTE ANY INDIVIDUAL PREMIUM RATE FOR THE INSURANCE HEREIN ADVERTISED. Grange Insurance policies are underwritten by Grange Insurance Company, Trustgard Insurance Company, Grange Indemnity Insurance Company, Grange Insurance Company of Michigan and Grange Property & Casualty Insurance Company*. Not all companies are licensed in all states. *Not licensed in Pennsylvania.