Cover for Thefts – 7 essential insurance covers for your enterprise | The Economic Times
7 essential insurance covers for your enterprise. Cover for Thefts. Burglary covers are of three kinds. First is a full-value insurance where the policy covers the full value of the property and therefore is liable to reimburse the entire damage/loss, except for wherever sub-limits apply. The second type is called a ‘first loss’ policy where you get only partial insurance of your property. That is, in event of a theft, you agree to accept an amount less than the full value of the stolen items. Then there is a third type — a stock declaration policy, where the sum insured is fixed at the beginning of the policy by anticipation the value of stocks your office will have at any given point of time. These policies are suitable where large inventory is involved and where the stock keeps fluctuating during the year. For small businesses, it is best to go with the first option. If you want to pay a lesser premium, even the ‘first loss’ policy is not a bad option. Whichever plan you pick, be wary of the exclusions list and read the fine print carefully. Burglary insurance protects you from losses due to theft when there is an actual forced break-in or even an attempted break-in. However, it does not protect you in case keys are used to enter your premise. Moreover, the insurer will repudiate your claim if your family or the business staff is involved. Any incident of loss when the office premise has been left uninhabited for 7 or more consecutive days is non-claimable as well. The exclusions list also includes loss of jewelry, title deeds, business books (unless specifically insured), plate glass, theft by family or employees and items covered under a parallel policy, say, fire insurance.