If a thief breaks into your house and steals your TV, your homeowners insurance policy usually covers your losses. But what about a business burglary? Will insurance save you from these thieves?
Typically, yes. A business owner policy (BOP) covers theft. However, it does work a bit differently from homeowners insurance by providing additional protection business owners need. In addition to theft, fire, and liability, a BOP includes business interruption insurance.
If a thief walks away with the tools you need for construction work, the computer required to run your office, or the inventory you rely on for sales, your policy will help cover your lost operation time. It will keep money coming in while you are unable to run your business.
But like homeowners insurance, business owner coverage offers either actual value or replacement value for reimbursement of stolen property.
If you receive actual value, you will get the worth of the item(s) minus depreciation. With replacement value, you receive the amount it will cost to replace the item. The type of coverage you have for your business helps determine the rate of the premium.
Each owner must decide which is the most cost-effective for his or her business. Consult with your agent for advice on determining what is best for you.
Regardless of coverage type, you should keep complete records of all items at your business site. This can include receipts, photos, or a video documenting what is on the premises. This will provide proof for your claim and help expedite the process.