Does business insurance cover theft?
Key takeaways
Most business insurance policies will cover theft, but the type of theft and the level of cover will vary, depending on the individual policy
You should check your policy to see what’s covered and consider purchasing add-ons based on the specific needs of your business
You can help prevent theft by installing security measures, implementing staff training, and taking cyber crime prevention measures alongside your business insurance policy
Does business insurance cover theft?
Most business insurance polices will cover theft, but the type of theft and level of cover will depend on the individual policy taken out. You should always check your policy to see what’s covered.
Most standard business insurance policies will protect you against:
Business takings stolen from you or anyone working from you — for example, if money was stolen from a cash register
Property or assets lost due to unauthorised entry into your business premises — for example, if an office was burgled and laptops were taken
Property taken by violent or forcible means — for example, if a shop was robbed by someone with a weapon, or if there was a break-in on your premises
Which types of theft are not covered by standard business insurance?
Every business insurance policy is different, and some will offer more comprehensive cover against theft than others.
However, there are some things that are not always covered by a standard business insurance package:
If the owner of a business or any business partners commit theft, most insurers won't pay out.
If theft occurs as a result of a business owner or employer being negligent, losses may not be covered.
For example, if you leave your business premises unlocked, your policy won’t cover any theft that occurs as a result.
If a theft takes place outside of the business premises, it won’t necessarily be covered under standard insurance.
This might be the case if an employee took their laptop away from the office, and their laptop was stolen on their commute home.
Vehicle theft will be covered under your business car or business van insurance, providing you have taken out a fully comprehensive or third party, fire and theft policy. (Theft is not covered under third party only motor policies.)
It is a legal requirement to have valid motor insurance, and you must declare the correct class of use (how you use the vehicle) to your insurer for your policy to remain valid. Cars and vans that you use for work must be covered for business use.
If you own multiple work vehicles, you can take out fleet insurance.
Although shoplifting is a common type of theft that can seriously impact small businesses, it’s usually not covered by standard business insurance.
This is because most business insurance policies cover property taken by violent or forcible means. Unless you have CCTV showing this was the case, violence or force can be difficult to prove in the case of shoplifting.
Cybertheft can be devastating for businesses, but cyber crimes such as data breaches and hacks are not always covered by standard insurance policies.
While some business insurance policies will include employee theft — for example, if an employer has pocketed takings or taken equipment from the premises to keep for themselves — it’s sometimes not included as standard.
Theft of intellectual property — for example, if someone stole trade secrets or copyrighted material — is not usually covered by standard business insurance.
Theft by a business owner
Theft due to negligence
Theft outside of business premises
Theft of vehicles
Shoplifting
Cybertheft
Employee theft
Theft of intellectual property
What insurance add-ons could give me broader cover against theft?
Most insurers will offer add-ons to their standard business insurance. If not already covered, you should consider:
Commercial crime insurance protects against a range of potential threats. A good commercial crime add-on might cover:
Employee fraud
Credit card fraud
Loss of property off business premises
Forgery and counterfeiting
Cyber crime
Cyber insurance prevents businesses from financial loss resulting from cyber attacks such as hacking, data breaches, and ransomware attacks.
It will cover the cost of any legal fees, financial damage, and third-party liabilities (meaning any financial loss that customers or clients suffer as a result of the cyber crime).
Intellectual property cover is a type of insurance that protects you against intellectual property theft or infringement. It will help you to cover legal costs if you need to pursue an intellectual property claim, and may also cover damages if a case is filed against you.
Tools insurance is an add-on that can protect tools and equipment from damage, theft, or loss regardless of whether or not the theft happens on business premises.
Make sure the amount of cover is sufficient for the value of tools you have, particularly if you rely on expensive equipment to run your business.
If your business is broken into, business insurance may cover anything taken during the break-in, but it won’t necessarily cover the cost of property damage. For example, if a burglar broke a window to enter the premises, the cost of fixing the window might not be covered.
In this case, commercial property insurance (also known as commercial buildings insurance) would help to cover this cost.
Commercial crime insurance
Cyber insurance
Intellectual property cover
Tools insurance
Commercial property insurance
Which types of theft cover does my business need?
When considering what type and level of cover you need to protect against theft, there are certain questions you should ask yourself. These might include:
Do you have expensive tools and equipment? If so, you may need tools insurance.
Do you use vehicles for work? If so, you legally need business car or business van insurance,
Does your work involve dealing with customer data, or using online systems? If so, you may need cyber insurance.
Do you have a large number of employees? If so, you may need commercial crime insurance, which would protect you against employee fraud.
In general, you should try and think about what situations could financially damage your business, and purchase insurance that will protect against them. You can always speak to an insurance broker or insurance provider if you’re not sure.
How can I prevent theft in my business?
Although insurance can help to cushion the financial cost of theft, risk management can help theft occurring in the first place.
You can protect yourself from theft by:
Investing in security measures such as CCTV and a monitored alarm system
Limiting access to high-value items and areas where expensive equipment or cash is kept by using keycards or PIN codes
Implementing employee training to help staff identify suspicious activity and understand the consequences of theft
Taking steps to protect your business from cyber crime. The National Cyber Security Centre offers guides for small businesses that can help you to protect your business.
It’s worth noting that none of these actions are failsafe, and it’s always worth investing in the right level of insurance to protect your business in the event of theft.
How do I make a theft claim?
You can usually make a theft claim by contacting your insurer. If a claim is successful, most insurance companies payout within 24 hours.
To make a theft claim, you should:
Document evidence of the theft — for example, if your business premises has been broken into make sure to take photos
Notify the police of the theft and get a crime reference number
Check your policy documents to make sure the incident is covered by your business insurance
Gather together documents and information such as your policy number, any photos or video evidence you have, and the date, time, and location of the incident
Contact your insurer and file a claim
Some insurers won’t accept a theft claim without a crime reference number, so it’s important that you contact the police as soon as possible after the theft occurs to get this.
How do I get business insurance for theft?
The best way to get business insurance for theft is to compare providers and find a deal that suits you. Consider your needs, and purchase add-ons as necessary to ensure that you are fully protected against crime.
MoneySuperMarket offers a platform to compare deals from UK life insurance providers, ensuring you find a policy that fits your needs and budget.
Do I need commercial crime insurance if I have business insurance?
You may still need commercial crime insurance if you already have business insurance.
Commercial crime insurance often provides a higher level of protection, covering you for things that your business insurance may not pay out for, such as employee theft and theft of property off business premises. Commercial crime insurance can often be purchased as an add-on to your business insurance, or separately through specialist insurance providers.
What else should my business insurance cover?
Every business insurance policy is different, however things often covered as standard are:
Business contents insurance: Covers your business contents, such as equipment, office furniture and stock.
Professional indemnity insurance: Covers you if a customer or client sues you because your work or advice caused them financial loss.
Public liability insurance: Covers you against claims made by a member of the public if they are injured or suffer loss or damage because of your business.
Employers’ liability insurance: Covers you if an employer is injured or becomes ill because of business-related activities.
Business interruption insurance: Covers you if your business has to cease operations due to events like a fire or flood.
Always check your policy, and consider add-ons if you feel that you require additional cover.
Does public liability insurance cover theft?
No, public liability insurance doesn’t cover theft. Public liability insurance protects you if a member of the public is injured or suffers loss or damage because of your business. It can cover legal fees and payouts, but not theft.
Is it worth having business insurance?
In most cases business insurance is an extremely valuable tool, and some forms of business insurance are a legal requirement.
For small businesses in particular, incidents such as theft, hacks, or being sued by a member of the public can be financially devastating. Business insurance can give you peace of mind, as well as providing security that you’ll be able to carry on operating if the worst should happen.
Some forms of business insurance are also a legal requirement. All businesses with employees must have employers’ liability insurance, so business owners who hire staff should purchase this at an absolute minimum.
What business insurance do I need for my small business?
Your business insurance needs will depend on the nature of your business. Small business insurance is an option specifically tailored to small business owners, and will cover things like employers’ liability insurance, public indemnity insurance, and theft insurance.
You can compare small business insurance and find a deal that suits you.
