Shops, factories, offices, godowns, all hold valuable stock, cash, or equipment. One break-in can wipe out lakhs overnight. Burglary Insurance protects business premises from losses due to forcible entry, hold-ups, and violent exit.

What Does It Cover?

• Loss of property due to actual, violent, and forced entry or exit
• Losses due to hold-up
• Damage to premises or property caused by burglars
• Cash loss from locked safes (if specific security conditions are met)

Cash Cover: Special Conditions Apply

• Covered only if cash is kept in a burglar-proof safe of approved design
• If the burglar uses the original key, it’s only covered if the key was obtained through violence or threats (key clause)
• Claims must be backed by separate records of the amount of cash stored

Add-On Options

• Riot, strike, and terrorism cover can be added with extra premium
• Declaration & floater options available for businesses with fluctuating stock or multiple locations

Special Coverage: First Loss Insurance

In certain businesses, theft of the entire stock at once is highly unlikely, like in the case of cotton bales, grain, sugar, or other bulk goods. That’s where First Loss Insurance comes in.

Rather than paying premium for the full stock value, this cover allows a business to:

• Insure only a portion of the total stock (called the Probable Maximum Loss)
• Pay full premium on that portion
• Pay a lower premium on the remaining stock

What’s Not Covered?

• Theft by employees, family, or anyone lawfully inside
• Ordinary theft or larceny without signs of force
• Losses already covered under fire, glass, or other insurance

How is Premium Decided?

• Type and value of items insured
• Location, building structure, and past claims history
• Security measures like alarms, CCTV, watchmen, etc.
• Moral hazard, the insurer’s assessment of risk based on business history
• For high-value cover, pre-inspection by insurer is common