What kinds of theft can business insurance help cover?
Many business insurance policies can help cover theft caused by break-ins or burglaries — but the details depend on the type of property stolen and how the loss occurred.
In general, business theft insurance may help cover:
- Theft involving forced entry, such as stolen equipment, cash or inventory after a break-in.
- Robbery or vandalism that causes property damage.
- Company laptops lifted from traveling staff.
- Products shoplifted from store shelves.
- Employee theft or fraud, if your policy includes commercial crime insurance.
- Cybercrimes like payroll scams, computer fraud and phony wire transfers.
What types of business insurance protects against theft?
Different types of business insurance can help protect from different theft-related losses. Some policies focus on physical property, others on employee or digital theft.
Choosing the right mix of coverage depends on how and where you work — whether you travel to a job, run a store or store sensitive digital customer information.
Here’s a quick look at some of the most common small business theft insurance options:
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What could be covered
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What’s not covered
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Commercial Property insurance
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Stolen equipment, tools or inventory taken from your place of business**
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Employee theft
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Cyber insurance
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Digital theft, data breaches or stolen customer information
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Physical theft of computers or electronics
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Tool and Equipment insurance
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Theft or damage to tools, gear or materials at job sites or in transit
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Tool wear and tear and unexplained disappearances
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Business Owner’s Policy (BOP insurance)
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Combines general liability insurance and commercial property coverage; may help cover theft
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Coverage varies by endorsements and policy limits
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Commercial crime insurance
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Employee theft, forgery, embezzlement or fraud
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Cyber theft, unreported losses
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How Commercial Property insurance could help with theft
Commercial property is the most common coverage for theft-related losses at your covered business location. It can help to repair or replace stolen or damaged business property like business computers, furniture or inventory after a break-in or vandalism.
How Cyber insurance could help with digital crime
Not all business theft is tangible and visible. Cyber insurance could help protect your business from digital theft — such as stolen customer information, hacked financial accounts or ransomware attacks. If your business stores sensitive data or processes online transactions, cyber coverage can help with costs around data recovery, legal fees and customer notifications after a breach.
How Tools and Equipment insurance can help with stolen goods
Also known as inland marine insurance, tools and equipment coverage may help if your business uses tools, machinery or equipment on the go. It’s especially useful for contractors, construction, landscapers, cleaners, janitors or anyone who works at multiple job sites.
How a Business Owner’s Policy (BOP insurance) could help recover losses
A BOP bundles general liability insurance together with commercial property coverage into one policy that’s often more cost efficient — and covers more risk — than a single policy. It can help cover business property theft, depending on your policy’s terms. For many small businesses, a BOP is a cost-effective way to combine theft protection with other essential coverages.
How commercial crime insurance could help protect your business
Crime insurance can help cover losses caused by dishonest acts such as employee theft, embezzlement, forgery or fraud. It can also extend protection to money and securities stolen on or off your premises. This coverage is particularly valuable for businesses that handle cash or have employees managing payments and deposits.
Note that NEXT does not sell commercial crime insurance.
Can business insurance help cover property damage or vandalism related to burglary or theft?
If your business gets hit with a break-in, commercial property insurance could help pick up the pieces. It can help pay to repair damage to your business property and replace stolen items so you can get back to business.
Vandalism often goes hand-in-hand with theft — and it’s just as frustrating. Think:
- Graffiti or tagging on your property
- Broken windows or doors
- Destroyed inventory or signage
- Damaged office furniture or flooring
- Tampered computer or electrical systems
These incidents can be costly to fix.
If you need to close temporarily for repairs, commercial property insurance may also help protect your business with business income insurance. This could help replace lost income and some other operating expenses while you fix up your shop until you’re able to open your doors again.
What type of theft is not covered by business insurance?
Though business insurance can help cover many theft-related losses, some situations are usually excluded. Knowing these limits ahead of time could help avoid surprises when you file a claim.
Here are a few common exclusions:
- Employee theft or fraud. Typically excluded unless you have commercial crime insurance.
- Theft by business partners, contractors or vendors. Most business insurance policies only cover theft from people outside of your organization.
- Unexplained inventory loss. Missing stock without clear evidence of theft or forced entry usually isn’t covered.
- Vehicle theft. Unless the business vehicle is insured under a commercial auto policy.
- Off-site theft. Property stolen away from your insured location may not be covered unless you have tools and equipment coverage.
These exclusions vary by insurer and policy type. If you’re unsure, ask your insurance provider to walk you through your theft coverage limits and exclusions — or review your policy documents yearly to stay current.
6 things to do immediately if your business gets robbed
It’s every business owner’s nightmare — walking in to find that your shop, office or job site has been robbed.
Take these steps right away after a burglary (a break-in theft) or robbery (a theft involving threat or force):
- Call the police. Get officers on the scene so they can examine evidence, take statements and file an official report. Your insurance company will likely request that report when you file a claim.
- Write down everything you remember. Record any details about the incident — including descriptions of suspects, vehicles and a timeline of events.
- Ask witnesses to stay. If customers or employees saw what happened, ask them to wait for the police. Their details can help strengthen your report.
- Leave the scene untouched. Don’t clean up or move anything until police finish their investigation. Preserving evidence can help your case and your insurance claim.
- Keep information private. Avoid discussing the crime publicly or posting about it online. Sharing too many details can complicate your claim or invite copycats.
- File your insurance claim. Once the police have cleared the scene, contact your insurance company as soon as possible to start your claim. If you’re insured with NEXT, you can file a claim online in minutes to help prevent delays.
Keeping detailed records and photos of your property can also make the claims process smoother — and help your business recover faster.
5 tips to help prevent theft at your business
While business insurance can help cover losses after a theft, the best protection often starts with prevention. A few steps can help make your business a harder target — and may even lower your risk profile with insurers.
Here are some simple theft prevention tips for small business owners to help reduce your theft risk:
- Install security cameras and alarms. Visible deterrents can discourage break-ins and help with investigations if theft occurs.
- Improve lighting inside and outside. Bright, well-lit areas make it harder for thieves to operate unnoticed.
- Use secure locks and safes. Protect cash, inventory and valuable equipment after hours.
- Train your team. Encourage employees to report suspicious behavior and follow clear closing or cash-handling procedures.
- Back up digital data regularly. Cyber theft and data loss can be just as damaging as physical theft.
Prevention doesn’t have to be complicated — a few small upgrades can make a big difference. Taking proactive steps like these can help protect your business — and in some cases, may help lower insurance costs or improve eligibility for certain coverages.
