3 Key Steps to Reduce Vulnerability to Theft and Reduce Business Insurance Claims

Most businesses are at risk of theft. Customers, employees and third parties could put your company at risk. In fact, Forbes reports that retailers in the United States face $60 billion a year worth of loss. 

Even service businesses face theft risks. Most of the time, business insurance is very affordable. Business insurance can help to defray some of the costs of this type of theft. However, reducing the risk of theft is far more economical for business owners. 

How do you do it?

#1: Prevent burglary

The definition of burglary is crimes where thieves gain unlawful entry into the business. Burglary can be devastating to a business owner. To prevent it:

• Ensure all entrances and windows have proper security and locks. Use those locks every night and when you are not there.
• Use exterior lighting to deter burglars.
• Install an alarm system or security monitoring system. These systems should trigger when someone opens an entrance.

#2: Prevent robbery

Robberies occur when a thief uses force to take valuable property or assets. Businesses that receive cash as a form of payment are at a high risk for this type of loss. To prevent it:

• Teach employees safe money handling techniques.
• Work with the local police department to create a safety plan. This is important in high-risk areas.
• Keep the amount of cash on hand at a minimum. Remove cash from registers frequently and store it in a safe or deposit it.

#3: Minimize insider crimes

Many crimes can occur within the company. This indicates that employees or management are often responsible for the losses.

Businesses need to be proactive in preventing this type of loss as well. To do so:

• Establish stringent guidelines for taking assets, goods or cash from the company.
• Increase the chances that you will catch employees who try to steal. One option is to place cameras near cash stores.
• Hire the best employees. Choose those who have passed background checks. Be sure to follow all laws regarding the use of background screenings for employment.

Taking these steps helps businesses to reduce the risk of theft. It doesn’t, however, eliminate the risks. Business insurance includes protection from financial loss related to theft in most forms. 

With the right insurance policy, companies can file a claim for any theft that occurs. This can help to safeguard your company’s finances even if a significant loss occurs.