If your business experiences losses because of theft and your commercial policy covers theft or other crimes, your first call should be to your insurance carrier to learn about your coverage details. Commercial theft insurers can tailor a policy to fit your type of business, so you may or may not have coverage for a specific type of theft crime.
Insurance companies write theft coverage policies to cover crimes such as:
- Employee theft, sometimes called employee dishonesty. These policies often have exclusions, so you will want to check the details carefully. For example, a policy might not cover dishonest acts by a partner or owner.
- Forgery such as bad checks
- Property theft, often referred to as shoplifting in retail environments. Note: This type of coverage can also protect against employee theft of inventory.
- Credit card fraud
- Theft of money and securities
- Burglary or robbery by employees or others
- Computer fraud
- Business identity theft
- Funds transfer fraud
- Counterfeit money
Businesses whose insurance company denied their theft loss claim—even when they have theft insurance—should find out about their options. They could be victims of insurance bad faith.
Issues in Commercial Crime Insurance
It is important to have objective advice about your commercial theft coverage, as there are exclusions that can invalidate your insurance. For example, if you know an employee has committed theft, the insurer would automatically cancel coverage on that employee. Other issues that can complicate a theft claim include:
- Whether you are covered for the time when the theft occurred or when you discovered the loss; these could be two different dates.
- The difference between your employee and an employee of a service provider, such as a cleaning crew or plumbing company. Your employee theft policy would not cover losses resulting from theft by a contractor’s employee.
- Whether the loss is the result of theft or vandalism.
- Having the assistance of a commercial insurance lawyer who understands issues such as these can help you reach the best outcome with your insurance company.
Contact Our Attorneys for Help if Your Business Theft Claim Was Denied
If your insurance company wrongly denied your theft claim, call our law firm for help. We can help you recover your losses. We can also review your coverage to make sure you have the right provisions in your theft or crime policies. Contact our commercial insurance lawyers to learn about your options when an insurance carrier denies your claim.