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Does Business Insurance Cover Theft?

Does Business Insurance Cover Theft?

Yes, business insurance can cover theft, depending on the specific policy and coverage options chosen.

Theft in the United States is common occurrence, and it’s essential to understand whether or not your business insurance policy covers it.

So if you are wondering if your insurance policy will protect you from theft, then this blog post for you. We delved into the specifics of theft coverage to help you determine what your policy does and doesn’t cover.

Let’s get started.

Related Post: Can Your Business Insurance Company Deny Renewal?

Understanding Theft Coverage

Theft coverage is essential to any business’s insurance because it covers financial losses from theft or burglary.

This coverage often falls under property insurance.

Here are some key ideas to help you understand business insurance theft coverage:

Coverage Scope

Theft coverage protects your business from loss or damage caused by theft, burglary, or robbery. It includes inventory, equipment, cash, and other valuable assets.

Covered Locations

Theft coverage applies to theft incidents at your business premises, like offices, stores, or warehouses. Some policies extend coverage to theft outside your premises, such as from company vehicles.

Policy Limit

Your policy specifies the maximum amount the insurer pays for theft-related losses. Review it to ensure adequate coverage for your assets.


You pay a deductible before insurance coverage begins. Choose an amount you can afford.


Policies may have exclusions or limitations. Review yours to understand any specific exclusions that apply.

Security Measures

Insurers expect reasonable security measures to prevent theft. Install alarm systems, surveillance cameras, secure locks, and proper lighting.

Documentation and Reporting

Promptly report the theft to the police and your insurer. Provide documentation like police reports, inventory records, or video evidence.

Business Interruption

Theft can disrupt operations, resulting in lost income. Business interruption coverage can reimburse you for the income lost during the interruption period.

Remember to carefully review your policy’s terms, conditions, and exclusions to understand your theft coverage.

I hope these ideas have helped paint an image of what theft coverage looks like? 

We also recommend consulting with an insurance professional to ensure adequate protection for your business.

Theft Insurance in the News

Theft insurance, a vital aspect of comprehensive coverage, often finds itself in the spotlight as theft-related incidents impact businesses across various industries. Cision reported a collaboration between Hyundai and AAA Insurers to fight car theft and compensate the victims.

Hyundai and AAA Insurers Collaborate against car theft

Hyundai Motor America and AAA insurers collaborated to offer insurance options for customers impacted by a theft method made popular on TikTok.

The theft involves bypassing the ignition system of certain Hyundai vehicles without push-button ignitions and immobilizing anti-theft devices.

Hence, the collaboration will issue new and renewal policies for eligible affected Hyundai customers in most states.

As part of it’s commitment, Hyundai has expedited the rollout of a free anti-theft software upgrade for affected vehicles. The upgrade aims to prevent the vehicles from starting during the theft method. Additionally, Hyundai will reimburse some customers for purchasing steering wheel locks or other anti-theft devices.

Here’s what Randy Parker, CEO of Hyundai Motor America, had to say:

“We are pleased to collaborate with AAA insurers in the best interest of our shared customers and provide support for those who were having difficulty securing and sustaining auto insurance due to the increased criminal activity targeting Hyundai vehicles.”

Limitations of Theft Coverage

Business insurance provides theft coverage, but it has limitations depending on the insurance type you choose to cover for theft.

  • You can purchase employee theft coverage separately or combined with other coverages, and has two types: loss-sustained and discovery coverage. Loss-sustained policies cover thefts that occur and are reported within the policy period. It also excludes theft by owners or principals.
  • Commercial property insurance generally excludes employee theft in its coverage.
  • Commercial crime insurance safeguards against only financial theft and fraud by employees or outsiders.
  • Fidelity bonds offer lower coverage limits than commercial crime insurance but aren’t as comprehensive.
  • Protecting your business from theft requires a comprehensive understanding of coverage options and their limitations.

The key point here is that each type of policy covers theft but has limitations in several areas.

So, if you need comprehensive coverage, you may need to spend a few extra bucks.

Apart from the coverage options listed above, there are others we think you should know about.

Additional Coverage Options for Theft

As a business owner, protecting your assets from theft is crucial. Consider discussing the following insurance coverage options with a professional:

  • Employee Dishonesty Coverage: Protects against theft or fraud by employees.
  • Computer Fraud Coverage: Covers losses from electronic fraud or hacking.
  • Extortion Coverage: Safeguards against losses from extortion threats.
  • Transit Coverage: Protects goods during transportation against theft.
  • Jewelers Block Insurance: Specialized coverage for jewelry and precious gems.
  • Cash and Securities Coverage: Covers theft of cash and securities.
  • Safe Burglary Coverage: Protects against theft from safes or vaults.

Your insurance professional can help you determine the coverage best suits your business’s risks.

Final thought

Overall, theft coverage is an essential component of any business insurance policy.

It provides peace of mind and financial protection in the event of theft.

To make informed decisions about insurance needs and protect against theft, we recommend carefully considering available coverage types and weighing cost-benefit analysis.

This way, you can safeguard your business from the potentially devastating impact of theft.


Does Company Liability Insurance Cover Theft?

No, company liability insurance generally does not cover theft.

Liability insurance protects businesses against claims related to bodily injury or property damage caused to others, but it does not typically provide coverage for theft of business property.

You’ll need separate property insurance for theft coverage.

What is Theft insurance?

Theft insurance is a type of coverage that protects against losses resulting from theft or attempted theft.

It provides financial compensation for stolen or damaged property, helping to mitigate the financial impact of theft-related losses.

How do I Claim Theft Insurance?

To claim theft insurance, report the theft to the police, notify your insurance provider, provide necessary documentation such as a police report and proof of ownership, cooperate with the investigation, and await the claim decision.

If approved, you will receive compensation based on your policy terms.

How Does Theft Affect Insurance?

Theft can affect insurance by potentially increasing premiums, especially for property insurance.

Insurance companies consider theft a risk factor, and claims related to theft can lead to higher rates or policy adjustments. Implementing preventive measures may help mitigate the impact on insurance.

What are Fidelity Bonds?

Fidelity bonds are insurance policies that protect businesses against financial losses resulting from employee theft, fraud, or dishonest acts.

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