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Return To: North Carolina Business Insurance – The Ultimate Guide
Business owners face a multitude of risks when running their operations, and one of the most significant threats they face is theft. For small business owners, it’s essential to understand what your insurance covers and how it can protect your company from losses due to theft.
In this article, we’ll explore whether business insurance covers theft and delve into the details of commercial crime insurance coverage.
Does Business Insurance Cover Theft?
Business insurance typically provides coverage for property damage, liability claims, and employee-related issues. However, not all policies include coverage for theft. In most cases, theft coverage is an optional add-on that business owners can purchase as part of their insurance policy.
If your business experiences a theft, your insurance coverage will depend on the type of policy you have and the coverage you selected. If you have commercial property insurance that includes theft coverage, you may be able to file a claim for the stolen property’s value or for the cost of repairing any damage caused during the theft.
It’s essential to review your insurance policy carefully to ensure you have the appropriate coverage for your business needs. Suppose you are unsure if your policy includes crime coverage or theft coverage. In that case, it’s best to speak with your insurance provider to confirm your coverage options and ensure you have the proper protection in place.
What is Commercial Crime Insurance?
Commercial crime insurance is a type of insurance that protects businesses against financial losses resulting from criminal acts such as theft, forgery, embezzlement, and fraud.
This type of insurance covers losses resulting from employee dishonesty, computer fraud, and other criminal acts committed within a business.
Commercial crime policy typically provides coverage for both first-party and third-party losses.
What Is First Party Coverage?
First Party Crime Coverage protects the business from its own losses resulting from criminal activity, such as theft of property or funds.
What Is Third-Party Coverage?
Third Party Crime Coverage protects the business from losses resulting from criminal acts committed against a third party, such as a customer or vendor.
What Does Commercial Crime Insurance Cover?
Commercial crime insurance covers a range of criminal activities that can occur within a business, including:
This coverage protects against losses resulting from theft by employees.
Forgery or Alteration
This coverage protects against losses resulting from the forgery or alteration of checks, drafts, or other financial instruments.
This coverage protects against losses resulting from the fraudulent use of computers, including hacking and theft of data.
Robbery or Safe Burglary
This coverage protects against losses resulting from robbery or safe burglary.
Funds Transfer Fraud
This coverage protects against losses resulting from unauthorized transfers of funds.
What are the Benefits of Commercial Crime Insurance?
Commercial crime coverage provides several benefits for businesses, including:
Commercial crime insurance coverage provides financial protection against crime related losses resulting from criminal activities, helping businesses to recover quickly and minimize their losses.
By providing coverage for a range of criminal activities, crime insurance helps businesses to mitigate their risk and protect themselves from financial losses.
Peace of Mind
Knowing that your business is protected against criminal activities can provide peace of mind and help you to focus on running your business.
How Much Does Commercial Crime Insurance Policy Cost?
The cost of commercial crime insurance varies greatly depending on the type and amount of coverage you need. A basic policy may be relatively inexpensive, while more comprehensive policies may be much more expensive.
The size of your business and the potential risk in your industry are two factors that will likely play a role in your commercial crime insurance cost.
When it comes to the cost of a basic commercial crime insurance policy, you’ll typically pay anywhere from $200 to $1,000 or more per year depending on your business size and type of coverage. Smaller businesses that are in low-risk industries may pay less, while larger businesses in higher-risk industries may pay more.
Comprehensive commercial crime insurance policies can be much more expensive, with costs ranging from $2,500 to $10,000 annually or more. These types of policies cover a wider range of criminal activities and are typically tailored to the specific risks faced by your business.
In addition to the cost of the insurance policy itself, you may also need to pay for additional coverages such as employee dishonesty coverage and computer fraud coverage. These coverages will typically cost anywhere from $500 to $2,000 or more depending on the amount of coverage you need.
The Final Verdict – Does Business Insurance Cover Theft
Theft is a significant risk for businesses, and it’s essential to understand what your insurance covers and how it can protect your company from losses. While not all business insurance policies include theft coverage, business owners can purchase optional add-ons to ensure they have the proper protection in place.
If you’re looking for more information about commercial crime insurance and how it can help protect your business, contact ALLCHOICE Insurance today. Our experienced agents are here to help answer your questions and guide you through the process of selecting the right policy for your business.