As a business owner, discovering that your place of business has been robbed can be devastating. Not only have you lost valuable equipment and merchandise, but the intrusion also leaves you feeling violated and vulnerable. Luckily, there are numerous methods one can employ to help stop that scenario from playing out in real life, including surveillance cameras, alarm systems, fencing, cautionary signage, and appropriate locks. But sometimes, despite our best efforts, these preventative measures just aren’t enough.
That’s where insurance comes in. The appropriate policy will ensure that even if the worst happens, you’re in the best possible position to recover from the losses and re-launch your business with ease. But what exactly is the best coverage to have in case of theft? We have outlined four useful coverages below.
Commercial property insurance
Theft costs Canadian businesses a great deal of money each year. Recent data from Statistics Canada has shown a significant increase in shoplifting rates, with a staggering 31 per cent rise in 2022 compared to the previous year. This trend has been further highlighted by the Retail Council of Canada (RCC), which reported an alarming 300 per cent surge in thefts among its members since 2020. As a result, retailers are estimated to incur annual losses of $5 billion due to this issue. But even if your business is a victim of theft, commercial property insurance can provide coverage. A commercial property insurance policy can protect you against loss due to theft, burglary, and more. Whether you own your building or are responsible for it under your lease agreement, this insurance policy can provide coverage and can help protect your building’s contents. This can include equipment, furniture, fixtures, tools, machinery, and property of others.
Employee dishonesty insurance
Theft doesn’t always occur as you might envision. In movies, burglary is often depicted as masked individuals breaking into a building at night, stealing all of the jewels and diamonds, and then escaping in a dark van. While some crimes are committed by outsiders, others are carried out by people you know, such as your employees. In fact, employee theft costs Canadian businesses about $3 billion every year.
Luckily, there is coverage that can help protect businesses from financial losses caused by employee dishonesty and fraudulent acts like credit card forgery and other types of theft committed by employees.
Commercial auto insurance
While you’re busy working to protect your business’ building and its contents, you may forget that any vehicles used by your company are also at risk of being stolen.
Commercial auto insurance is a necessity for any business that relies on vehicles for day-to-day operations. Some business owners assume that their personal auto policy already covers their work-related vehicles, but this may not be the case. It’s important to carefully review your current insurance coverage and consider obtaining commercial auto insurance if your vehicle is registered under the business’ name or if it is used to transport goods for work purposes.
Standard commercial auto insurance ensures there’s coverage for your company vehicle and can provide replacement car coverage if you have to rent a temporary car for day-to-day operations after an accident or theft.
Business interruption insurance
Losing your merchandise or equipment due to theft is bad enough, but what many don’t realize is how much such an event can disrupt your business. If equipment is taken or damaged, or your property is damaged, you may not be able to operate your business until it’s fixed or replaced. For instance, if the front entrance of your business is damaged during a robbery, and customers cannot enter as a result, your bank account will suffer. Similarly, if the equipment you use to create your products is stolen during a burglary, you may have to delay your manufacturing until you replace the necessary equipment.
Business interruption insurance is designed to help cover your loss of net income and allow you to continue paying normal operating expenses in the event your operations are suspended due to a covered peril. Included is coverage for extra expenses to expedite your return to business or limit your loss.
Protect yourself and your business with insurance
Protecting your business often means considering risks that are easily overlooked, such as theft. Whether it involves equipment, inventory, or data, theft can significantly affect your bottom line and jeopardize your business’ stability. Take a step towards protecting your business property by visiting our business insurance page today!
This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information.
