Theft is a serious concern for anyone who owns or uses company-owned assets. There are numerous types of theft risks, and they can occur in almost any location. Businesses of all types — from manufacturing to retail to professional services — are susceptible to different types of theft risk. Theft insurance helps limit the potential financial impact of theft by reimbursing you for your loss. There are three main coverage types you should consider when purchasing an insurance policy: business property, personal property, and employee dishonesty.
What is Business Property Theft Insurance?
Business property insurance, also known as commercial property insurance, covers the cost of replacing your business’s inventory, equipment, furniture and other large assets that are at high risk for theft. These assets usually have a high dollar value and/or are difficult to replace. Business property insurance is often included as part of your business owners’ or commercial property insurance policy but can also be purchased as a standalone policy. Business property insurance coverage can vary by policy and company, but it typically includes the following types of stolen items: inventory, furniture, fixtures, equipment and computers/software. You may have a few different options for business property coverage, including a specific business property limit, a combined business property and commercial property limit or a specific dollar value for business property.
What is Personal Property Theft Insurance?
Personal property insurance, also called homeowner’s insurance, covers the cost of replacing your personal belongings that are stolen from your residential or commercial property. Personal property insurance often comes as part of a homeowners’ or renters’ insurance policy but can also be purchased as a stand-alone policy. Personal property coverage can vary by policy and company, but it typically includes the following types of stolen items: clothing, jewelry, furniture, appliances, computers/electronics, sports equipment, bicycles and other belongings. You may have a few different options for personal property coverage, including a specific dollar value, a combined business property and personal property limit or a specific amount based on the value of each item.
What is Employee Dishonesty Theft Insurance?
Employee dishonesty insurance covers the cost of replacing stolen assets that are taken by an employee or contractor. Employee dishonesty insurance is often included as part of your commercial general liability insurance policy but can also be purchased as a stand-alone policy. Employee dishonesty coverage can vary by policy and company, but it typically includes the following types of stolen assets: inventory, buildings/fixtures, furniture, computers/software, equipment and cash/money. You may have a few different options for employee dishonesty coverage, including a specific dollar value, a combined business property and employee dishonesty limit or a specific amount based on the value of each item.
Which Type of Theft Coverage Should I Have?
Each type of theft coverage requires a slightly different set of circumstances to be triggered. Some theft coverage types are more likely to be triggered than others, but they’re all relatively uncommon in the general population. That’s why insurance companies offer such low rates for theft coverage: they expect that the vast majority of their customers will never file a claim. Theft coverage is a good investment for businesses that are at high risk for theft. If you’re at low risk for theft, you’re better off investing your money elsewhere. Business property theft coverage is used the most often, followed by employee dishonesty coverage. Most businesses that purchase personal property coverage never file a claim. That’s why the majority of insurance companies only offer specialized personal property coverages that are more expensive and have a high deductible.
How to File a Business Property Theft Claim
To file a business property theft claim, you’ll need to answer the following questions: What was stolen? Where was it stolen from? When was it stolen? Why was it stolen? How was it stolen? These questions will help the insurance adjuster understand the details of your claim and determine your eligibility for coverage. If you have a computer-based inventory system, you may be able to use the system to report the theft. Otherwise, you’ll need to file a written report of the theft. The report should include the details listed above. You’ll also likely need to provide a copy of your company’s inventory list that lists each stolen item and its value. You may also need to provide a police report if the theft occurred off-site. Your insurance company may also ask you to take a polygraph test to confirm the details of your claim.
How to File a Personal Property Theft Claim
To file a personal property theft claim, you’ll need to answer the following questions: What was stolen? Where was it stolen from? When was it stolen? Why was it stolen? How was it stolen? These questions will help the insurance adjuster understand the details of your claim and determine your eligibility for coverage. If you have a computer-based inventory system, you may be able to use the system to report the theft. Otherwise, you’ll need to file a written report of the theft. The report should include the details listed above. You should also file a police report if the theft occurred off-site. Your insurance company may also ask you to take a polygraph test to confirm the details of your claim.
How to File an Employee Dishonesty Claim
To file an employee dishonesty claim, you’ll need to answer the following questions: What was stolen? Where was it stolen from? When was it stolen? Why was it stolen? How was it stolen? These questions will help the insurance adjuster understand the details of your claim and determine your eligibility for coverage. If you have a computer-based inventory system, you may be able to use the system to report the theft. Otherwise, you’ll need to file a written report of the theft. The report should include the details listed above. You should also file a police report if the theft occurred off-site. Your insurance company may also ask you to take a polygraph test to confirm the details of your claim.
Bottom line
Theft is a risk that every business must be prepared to deal with. Theft insurance helps to mitigate the financial impact of theft by reimbursing you for the stolen items. There are three main types of theft coverage: business property, personal property, and employee dishonesty. Business property coverage is the most common type of theft coverage, followed by employee dishonesty coverage. While most businesses never file a claim, theft coverage is a good investment for companies that are at high risk for theft.
Give American Claims Ensurance a call at 800-204-2463 or go to acepublicadjusters.com to find out how we can help you.