Theft insurance, also known as crime insurance, is important for small businesses to offset the costs of damage and loss due to theft. It is often included in travel, home, or personal property insurance and requires evidence of ownership. Rates depend on crime rates and previous thefts, and insurance companies may drop clients who are robbed too many times.
Theft insurance helps a person offset the costs of damage and loss of items due to theft. This type of insurance is generally not independent; instead, it is included in travel insurance, home insurance, or personal property insurance. It is particularly important for small businesses whose owners risk losing their livelihood due to theft. Theft insurance contracts generally require evidence that a person owned the stolen items through receipts, photos, or the boxes the items originally arrived in. Also, insurance companies generally increase premiums when a person is robbed or is at higher risk for any reason.
This type of insurance is essential for small businesses that could go out of business after a major theft. For example, a family-owned jewelry store could have half of its inventory stolen, leading the owners to liquidate and close the store. This insurance is also called crime insurance and typically protects business owners from losses caused by both strangers and employees. Small business theft insurance is often a supplement to business or property insurance.
It is invaluable for a person to have documentation proving ownership of their property in the event it is lost due to theft. Insurance companies want proof that the property existed before a theft and was not manufactured simply for monetary gain. Having photographs, original packaging, or any other physical proof of ownership of the stolen property will make it easier to prove its existence to an insurance company in the event of theft. Some insurance companies may also want to see proof that a police report was filed and that the victim attempted to recover stolen property. Insurance companies also often ask a trusted third party to confirm the value of stolen items.
The monthly theft insurance rate depends on many factors, including crime rates in the area and the number of times the insurance holder has been robbed. For example, it is common for rates to increase after being stolen and then to file a claim to be reimbursed for the stolen items. The insurance company considers the home or business to be at risk; Furthermore, the client has proven to be less profitable than most others. Sometimes an insurance company will drop a client if they are robbed too many times, with the definition of “too many” occasionally being once or twice, depending on the company’s policy on such matters.
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