Commercial Insurance Claims for Vandalism & Theft

Are you a business owner who has suffered a loss due to theft or vandalism? Was your insurance claim unreasonably denied?

It’s business as usual until an incident of theft and/or vandalism leaves your business turned upside down. But, you feel confident that all will be ok because you have insurance coverage. You made a report to the police and have the documentation, you properly filed your claim, and you begin to try to pick up the pieces while you wait.

Then, you find out your commercial insurance claim for vandalism was denied. Why? How does this happen?

The attorneys at Raizner Slania, LLP have seen these claims denied by insurance companies all too often, leaving business owners devastated.

The Difference Between Theft and Vandalism

• Commercial Theft refers to someone taking something from your business without the intent of giving it back. This could include your inventory, fixtures, materials, and so on.
• Commercial Vandalism is a crime that occurs when someone damages or destroys your property – without permission to do so. This could include damage to your physical structure, inventory, machinery, and more.

Each of these crimes can go hand-in-hand. When a business is vandalized, such as with a broken window, it leaves it open and exposed to theft. And vice versa. The smallest of details can impact whether or not a claim is paid or denied.

Why Vandalism and Theft Claims Are Denied 

Some insurance companies may take advantage of the fact that many business owners don’t fully understand the details of their coverage. They provide limits and/or exclusions on these types of claims. And many times, if they are not denied, the insured is often greatly under-compensated.

A commercial insurance claim for vandalism and theft can be denied for a number of reasons, most often including:

Inability to prove that a break-in occurred. Submitting a claim that items are missing will not usually get you compensated for theft. Insurance companies often want proof of things like forced entry or broken windows, for example.

Inability to prove that items subject to the claim belong to the business. Because anyone can claim anything was stolen — and file a claim to get paid by the insurance company, proof is often required. Insurance companies want to see purchase receipts, detailed inventory records, and the like.

Negligence on behalf of the insured. That’s right – if the insurance company feels that you didn’t do all you could to protect against the theft, such as maintaining adequate lighting or security, your claim may also be denied.

Inability to determine worth. You may be required to provide extensive amounts of detailed information to prove the value of the stolen items. Even then, your claim is likely to be undervalued by the insurance company.

Unclear terms. Some terms within your insurance policy may state that claims will not be covered if a property is vacant, for instance. However, it doesn’t state what exactly constitutes a vacancy or provide a specific amount of time. If a theft occurs when your business is shut down for repairs, is it considered vacant? Insurance companies often use these unclear terms to avoid paying claims.

What to Do if You Are Experiencing Issues with Your Commercial Insurance Claim for Vandalism or Theft 

If you believe that your insurance claim was unreasonably denied, delayed, or underpaid, contact the attorneys at Raizner Slania, LLP today. We are highly experienced in working with insurance companies — and we know how to protect your rights.