Why do many businesses purchase insurance to cover losses due to employee theft and shoplifting?
Asked by: Reid Hahn | Last update: October 1, 2025Score: 4.5/5 (60 votes)
Does business insurance cover shoplifting?
Business insurance is essential for retail stores because it provides a safety net against various risks, including shoplifting. With the right insurance policies, you can mitigate financial losses, cover legal expenses, and ensure business continuity even when faced with unforeseen events.
What type of insurance policy covers losses due to employee theft?
Employee dishonesty coverage protects employers from financial loss in the event that employees steal from them. This coverage is part of a commercial crime insurance policy. Employee dishonesty coverage is written on either a loss discovered or loss sustained form.
Can businesses purchase insurance to protect against lost business income when their operations are interrupted by a shut down?
Issue: Business interruption (BI) insurance, also called business income insurance, helps small businesses protect against monetary losses due to periods of suspended operations when a covered event, such as a fire, occurs and causes physical property damage.
Does crime insurance cover employee theft?
Commercial crime insurance provides protection from financial losses related to business-related crime, including theft by employees, forgery, robbery, and electronic crime.
Does Business Insurance Cover Theft?
Can theft be covered by insurance?
Comprehensive coverage will usually cover theft, as well as repair costs from break-in damages. Liability insurance likely won't cover theft, as it usually protects against bodily injury and property damage resulting from an accident.
What happens with employee theft?
If you commit an act of employee theft, the company you work for can terminate your employment. In addition to losing your job, you can also face arrest, conviction, and the consequences of both. Employee theft is a serious crime that can cost you your job and freedom.
What causes of loss are covered under the business income coverage form?
Property coverage can protect a business from physical damage to its property from fire, windstorm, vandalism and other similar events. Sometimes, the covered damage prevents a business from operating. In those situations, the business's revenue may decline or even come to a halt.
Does business interruption insurance cover theft?
Business interruption insurance is designed to help protect against income loss when a covered peril impacts a business. These perils typically include theft, fire, wind, falling objects or lightning.
How do businesses protect themselves against losses?
Business insurance can serve as a safety net, protecting both your business and personal assets against unexpected events, such as accidents, natural disasters, and lawsuits that could cripple your business. There are cases where certain types of business insurance is mandated by law.
Does business liability insurance cover theft?
Does General Liability Insurance Cover Theft? General liability insurance doesn't cover theft or burglary, but a commercial property insurance policy does. Commercial property insurance helps protect your business' physical assets, like your building, equipment, tools, inventory, furniture and personal property.
Which protection is purchased to reimburse for a loss resulting from theft by an employee?
Purpose – Employee Dishonesty Bonds, also known as fidelity bonds or dishonesty bonds, are primarily designed to protect businesses against losses caused by dishonest or fraudulent acts committed by their employees.
What is theft protection insurance?
Highlights: Identity theft insurance is a type of insurance policy that provides financial protection for victims of identity theft. Coverage varies between insurers, but identity theft insurance generally aims to cover costs associated with the recovery process after you have become a victim of ID theft.
Does work insurance cover theft?
Business insurance can offer coverage against employee theft. However, your business policy needs to specifically include this type of loss. Keep an eye on your plan and work with your agent to make the most out of your coverage.
Is shrinkage covered by insurance?
There's no viable or common policies that cover run of the mill retail shrinkage. It's not a thing. Stores just have to eat it.
Does insurance cover store robberies?
Broad form storekeepers' insurance is coverage provided to store owners in the event of theft or robbery. This insurance is found under the burglary and robbery insurance policy.
Does business insurance cover losses?
Business income insurance helps cover lost income if you can't operate because of a covered property loss. Staff copywriter specializing in small business insurance for The Hartford. CPA, keynote speaker, national business columnist and author.
What does PD mean in insurance?
For example, in California, drivers are required to have at least $5,000 of property damage liability coverage.
Does a business owners policy cover employee theft?
Will My Commerical Business Insurance Cover Employee Theft? In most cases, the answer will likely be no. Most insurers that provide commercial coverage include acts of theft from a third party. For example, if you're business is burglarized, they will reimburse you as the policy says.
What is the special cause of loss coverage?
The Special Causes of Loss form is just that, special. It provides coverage for risks of direct physical loss unless, of course, they are excluded or limited.
What is not covered under business income coverage?
Flood, earthquake or glass breakage are typically not covered in a business income policy.
How does employee theft affect businesses?
Recent data on employee theft reveals a sobering reality for businesses. According to studies, employee theft accounts for approximately 30% of business bankruptcies. This significant percentage highlights its impact on the financial health of companies. Businesses annually lose $50 billion due to employee theft.
How do companies recover from theft?
First, don't wait to notify the police and file a police report. You can take inventory of stolen or damaged items after the police have finished their investigation. Once you've inventoried and documented the damage, file an insurance claim. You'll need photos or receipts for items stolen.
Can an employer accuse you of stealing without proof?
If an employer makes a false accusation of theft, this could damage your reputation, and you can sue them for defamation of character. There are a few basic requirements for defamation of character suit. Your employer must have made a false statement about you, and they must have published that statement.