Burglaries pose a major threat to businesses, resulting in significant financial losses and operational disturbances. This crime can occur anywhere and at any time, draining businesses of valuable assets.
Serving as a powerful safeguard against the financial and emotional impact of such incidents, burglary insurance provides critical support and peace of mind amidst uncertainty.
Discover burglary insurance’s meaning and how it shields policyholders from evolving burglary threats.
What is a Burglary Insurance Policy?
Burglary insurance is a contractual agreement that transfers burglary-related financial risks to an insurance company, which covers financial setbacks resulting from unauthorised or unforeseen entry into the premises.
Typically bundled with fire insurance, this type of insurance policy financially protects the policyholder from loss or damage to business assets, such as machinery, furniture, fixtures and equipment.
Thanks to burglary insurance, business owners can effectively offset risks associated with burglaries and protect their assets, ensuring business stability and viability.
The Need for Burglary Insurance Coverage
Without burglary insurance coverage, businesses risk substantial financial setbacks, which can cause long-lasting damage to their revenue and overall well-being. Let’s examine burglary insurance policy’s key advantages and critical role in businesses to fully understand why it’s so important –
- Financial Protection: Burglary insurance reimburses costs incurred due to loss/damage to business assets, equipment and premises. This ensures financial security and smooth recovery.
- Value for Money: Offering affordable premiums and comprehensive coverage against several risks, burglary insurance serves as a cost-effective tool to protect assets.
- Timely Support: Burglary insurance offered by reputable insurance providers, such as TATA AIG, comes with a streamlined claim process.
This efficient processing guarantees timely, hassle-free claim settlement, providing the required support in the event of burglary
- Asset Security: Burglary insurance coverage helps protect valuable business assets and equipment. This ensures asset security and mitigates unforeseen financial risks.
- Reassurance and Comfort: A burglary insurance policy alleviates anxiety and stress associated with business-related uncertainties. This offers peace of mind and reassurance, allowing business owners to focus on their growth and success.
General Inclusions Under Burglary Insurance
| Inclusions | Details |
| Loss or Damage to the Contents | Covers loss or damage to contents resulting from burglary, housebreaking or hold-up.
Here, contents refer to articles or things in your premises that are not permanently attached or fixed to the structure of your premises. |
| Lock Repair or Replacement | Covers the cost of repairing or replacing the locks and keys of safes and rooms for secure storage of money. |
| Damage to the Premises | Covers damages to premises (specified in your insurance policy) caused by burglary, housebreaking or hold-up. |
| Loss or Damage to Asset and Equipment (Excluding Stocks) | This coverage can be included upon payment of additional premiums from the date of inclusion. |
| Repair Expenses of Underground Cable, Pipes and Overhead Tanks | Covers repair costs for damages ( specified in your insurance policy) caused to the premises during burglary, housebreaking or hold-up. |
Note: Burglary policy coverage is subject to the insurer’s terms and conditions. Refer to your policy document or contact your insurer for details.
General Exclusions Under Burglary Insurance
| Exclusions | Details |
| Jewellery, Personal Effects, Works of Art, Etc. | Does not cover gold or silver articles, precious stones, jewellery, medals, coins, sculptures, rare books, manuscripts, models and specifications, unless specifically listed in the policy. |
| Natural Disasters | Does not cover losses/damages directly, indirectly, remotely or proximately caused by earthquakes, typhoons, hurricanes, volcanic eruptions, tornadoes, cyclones, hurricanes or other similar natural disasters. |
| Documents | Does not cover loss or damage of documents, including bills of exchange, money or securities for money, deeds, bonds, promissory notes, share certificates, books of accounts, stamps, contracts and documents of any other kind. |
| Insider Theft | Does not cover loss or damage resulting from theft by insured’s employees, inmates or members. |
| Losses Due to Deception/Negligence | Does not cover unexplained losses resulting from errors or willful omissions.
Does not cover losses discovered during stock-taking. |
| Similar Crimes | Does not cover losses resulting from loot, pilferage, ransack or spillage. |
| Off-Premises Theft and Attempted Thefts | Does not cover losses/damages incurred in areas outside of your premises, such as gardens, open spaces, yards and outbuildings unless specifically listed in the policy. |
Note: Exclusions under burglary insurance are subject to the insurer’s terms and conditions. Refer to your policy document or contact your insurer for details.
Key Takeaways
Investing in burglary insurance offers a range of benefits, from mitigating risks to ensuring business continuity, providing added peace of mind and offering much-needed financial support in challenging situations.
Whether you are a business owner, homeowner, retailer or financial institution, consider buying burglary insurance. This will help you protect your assets and rebound faster from losses.
