When a business is subject to theft or vandalism, it can result in losses beyond actual damage. Without prompt repairs and remediation, a business’ reputation can suffer, and even the most loyal employees could decide to leave. Filing an insurance claim promptly and correctly to address any losses is one of the best ways to mitigate the long-term impact of theft and vandalism on a business.
Types of Vandalism and Theft Incidents
Many types of vandalism and theft incidents may be covered under business insurance policies, including:
- Burglary resulting in stolen cash, inventory, or machinery
- Employee theft
- Property damage, including broken windows and doors
- Graffiti and other property defacement
- Vehicle vandalism
While many businesses owners may spend time and resources considering how to prevent theft and vandalism, it is important to note that insurance policies may cover all the above. Business owners should familiarize themselves with their specific policies to be certain what their policies cover and, more importantly, what they do not.
Identifying Immediate and Hidden Damage
If vandalism or theft occurs at a business location, the business owner should take immediate steps to identify any damage and losses. For instance, if a burglary is suspected, the business owner should take immediate inventory and review recent inventory logs to determine exactly what is missing. In the case of vandalism or property damage, a thorough examination of the physical property is recommended to uncover obvious as well as hidden damage.
Initial Steps After Discovering Vandalism or Theft
After discovering vandalism or theft, the most important thing for a business owner or manager to do is to ensure the safety of the employees and the property. If the perpetrator may still be present, everyone should leave the area immediately if it is safe to do so and call the police. It is also a good idea to refrain from touching anything as it could interfere with evidence against the perpetrators.
Once it is safe to return to the business, owners can begin to secure the property and document the damage for potential insurance claims.
Securing Your Property
Vandalism and theft can attract more crime to your business. If there is damage to the property that could attract further criminal activity, such as broken windows or doors, be sure to secure those areas immediately. It is also a good idea to install or upgrade any existing security system, whether that means replacing broken cameras or even hiring security personnel to patrol the exterior of the building.
Reporting to Law Enforcement
Before making any theft and vandalism claims to an insurance company, business owners should file a police report. The business owner and any witnesses to the crime should provide as much detail as possible to the police. Business owners should also obtain a copy of the police report as well as the report number, as this will be required for insurance claims.
Documenting the Incident for Insurance Claims
As with most types of insurance claims, documenting any damage is critical. Business owners should take detailed photographs and videos of any damage or other evidence of theft or vandalism. Although it is natural to want to go back to business as usual, be sure to document everything before beginning the clean-up process. In addition to taking photographs and videos, creating a written inventory of everything that was stolen or damaged, including descriptions, estimated values, and any relevant serial numbers, is also a good idea.
Understanding Your Insurance Policy Coverage
It is best for business owners to familiarize themselves with what their insurance policies cover well before any theft or vandalism occurs. Regularly reviewing your insurance policy coverage is a good business practice so you are not left wondering does my insurance cover theft and vandalism after an incident has already occurred.
What’s Covered and What’s Not
Every business insurance policy is different, but, in general, commercial property insurance policies do cover damage stemming from vandalism, including broken windows and doors and vehicle damage. Business insurance policies also typically cover random burglaries and stolen inventory as well as other assets.
However, a standard business insurance policy typically does not cover employee theft or any type of embezzlement. Essentially, if a crime is committed by the business owner, any of the business partners, or anyone on the payroll, it is typically not eligible for an insurance claim.
Some business owners choose to obtain business crime insurance, which covers a broader spectrum of crimes that could impact a business, including:
- Employee theft
- Forgery
- Fraud
Policy Limits and Deductibles
As with any insurance claim, policy limits and deductibles for theft and vandalism claims vary, depending on the insurance policy. Policy limits and deductibles may be determined by the size and type of the business as well as the business’ location and the number of employees.
Filing the Insurance Claim for Vandalism and Theft
After reporting the incident to police, obtaining a police report number, and thoroughly documenting any losses stemming from vandalism or theft, it is time to file an insurance claim. Business owners should contact their insurance companies to request the correct steps and forms for filing all their claims.
Preparing a Detailed Claim Report
By immediately documenting any damages and losses, business owners will be well prepared to complete the required detailed claim reports. Most insurance claim reports ask for documentation such as receipts, appraisals, and copies of any related police reports. Business owners may also be asked to write detailed incident descriptions. Once the claim report is complete, file it with the insurer promptly and keep a copy for your records.
Navigating the Claims Submission Process
The insurance claims submission process can be arduous, particularly after a theft or vandalism incident. Insurance adjusters from the insurance company are ultimately not working on the side of the businesses they insure and therefore tend to be of little help. A public insurance adjuster may provide the answer in many cases. A public insurance adjuster works for the insured party, which means they can expedite the filing process and help maximize payouts.
Connect with WorldClaim for Expert Claims Assistance
A public commercial insurance adjuster from WorldClaim can help business owners file insurance claims for theft and vandalism and more. WorldClaim experts can help you document your losses, organize all the paperwork, and then file the claim. Police reports, photographs, and other reports help substantiate the theft or vandalism claim and move the process forward. If your business has suffered a loss due to theft or vandalism, reach out to us today and let us help.
