4th October 2017
If you own a small business and you would like to protect your property (be that general business contents, your stock and any goods belonging to your customers that are being held at your premises) against theft, then — and we know you’ll be shocked by this — theft cover is the way to go.
Theft cover is usually purchased as part of a business pack and can go some way towards keeping your business running without interruption should a situation arise in which you need to claim on this insurance.
Let’s have a look at the basics so you can decide if adding theft cover to your small business insurances is the right move for you.
What types of items are covered?
The items in question here are referred to as “property insured”. In general, this will extend to the following items when they are being held at your business premises:
- Business contents
- Goods belonging to customers (for example, in the case that you are responsible for repairing them)
What situations are covered?
Most policies, but not all, will extend cover to the loss or damage of contents and stock at the business premises in some or all of the following situations:
- Theft resulting from forcible or violent entry
- Theft resulting from a person concealed at the premises
- Theft as a result of an armed hold-up or assault
- Theft as a result of non-violent and non-forcible entry
- Damage to buildings and fixtures
- Protection of the premises in the interim
- Replacement of locks
What things are excluded?
Shoplifting in a retail context is usually excluded. And there will be conditions or limits applied to certain goods — for example, tobacco or alcohol. Due to their highly sought after and portable nature, coverage for alcohol and tobacco is usually offered as an optional extra and comes with limits to how much is covered.
How do I know if I need it?
Think about the types of items you have on your business premises and consider their value, both in terms of the items themselves and in terms of how they enable you to run your business. If any of these items were stolen, would the day-to-day running of your business be affected? If the answer is yes, then theft insurance might be a policy worth considering.
If you’re still not sure about whether or not it’s vital to your business, have a chat to a trusted business adviser or a broker who is unaffiliated with a particular insurance company. They will be able to look at your business and its specific characteristics and advise you as to whether or not theft insurance is a worthwhile investment.