What type of vandalism can commercial property insurance cover?
Commercial property insurance, also known as business hazard insurance, often covers vandalism and its related losses (subject to policy terms).
Examples of vandalism events that could be covered include:
- Tagging, painting or writing on your business property
- Smashed windows on your building
- Damaged doors and other building structural features
- Some defaced external signage
- Ruined inventory
- Wrecked tools or equipment
- Intentional flooding of a business’ internal or external space
If vandalism requires you to close your doors for repairs, business interruption coverage could help pay for business income until you can reopen.
When will commercial property insurance not cover vandalism?
In some cases, your insurance company might not pay for vandalism claims if:
- Your policy explicitly excludes vandalism.
- You have a named-peril policy, and it doesn’t list vandalism as a covered loss.
- Your premises were vacant for an extended period — typically 60 days or longer.
- You had plate glass damage, but didn’t add a plate glass endorsement to your policy.
In these and other circumstances, your commercial property insurance might not cover the loss. Read your policy carefully and keep it up to date. If you’re not sure about coverage, ask your agent or insurer for clarification.
What if someone vandalizes my business vehicle?
Commercial property insurance doesn’t usually pay for vandalism to your business-owned car or truck. But if you have commercial auto insurance, you can file a claim under that policy. It could pay for fixing the damage after you fulfill your deductible.
What should I do if my business gets tagged, damaged or vandalized?
To minimize disruption to your business, act coolly, calmly and professionally — then get down to business:
- Write down the damage. Make notes while it’s all fresh in your mind.
- Call the police. Report the crime and file a report.
- Let your employees know. Inform your staff as soon as possible.
- Photograph the damage. Document the scene fully for your insurance claims adjuster.
- Stow company valuables if your business will be closed for repairs. Keep everything secure to avoid secondary theft during cleanup.
- Review your insurance coverage and file a claim. Check your insurance policy to confirm vandalism coverage, then file a claim with your insurer.
- Get repair bids. Ask your insurer if it has a list of preferred vendors and get at least two bids.
- Create an incident file. Save the police report, estimates, discussion notes with your agent and adjuster and other relevant documents in one place.
- Inform your customers. If you need to close your business temporarily, let your customers know you’re closed for repairs and when you’ll reopen.
How to help prevent vandalism for a business
These best practices could help your business be less susceptible to vandalism:
- Keep up with your outdoor maintenance. Make your business look occupied and in tip-top condition.
- Remove tags and graffiti quickly. If someone draws or paints on your building, remove it immediately to lower the odds of a recurrence. Better yet, add graffiti-resistant coating on walls that collect tags and graffiti for easier cleanup.
- Reduce access. Use landscaping — like shrubs, thorny bushes and vines — to reduce vandal access.
- Brighten doors and windows. Upgrade your building’s exterior lighting to increase public visibility.
- Enhance security. Install a video security system and hire security officers to patrol the area.
How NEXT can help keep your small business safe
Vandalism can be a major — and costly — headache for small business owners. If it happens to you, NEXT could help you recover.
We make getting insured to protect your business from vandalism — and other losses — easy, affordable and fast.
Choose from general liability insurance, workers’ compensation insurance, professional liability insurance and more. Answer a few questions, get a quote and buy coverage in 10 minutes or less.
As soon as you authorize payment, you’ll get immediate access to your certificate of insurance.
Questions about our coverage or buying process? Our licensed, U.S.-based insurance advisors are ready to help.
Start a free quote with NEXT today.
