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Here's What You Should Know About Business Liability Insurance

commercial general liability insurance

Oct 11, 2023

Commercial Insurance

Running a business comes with its share of risks, and this is where business liability insurance offers a safety net for unforeseen events. However, one of the most concerning problems for small businesses is theft. Whether it's valuable equipment, sensitive data, or even vehicles, the potential loss can be significant. So, as a business owner, you may be thinking that does business liability insurance cover theft? Let's find out.

Does Commercial General Liability Insurance Cover Theft?

Commercial General Liability Insurance, commonly known as CGL, is a foundational policy for businesses. It primarily covers bodily injury, property damage claims, personal injury claims, and reputational harm that arise out of the company's operations. However, theft is generally not part of this coverage. While it safeguards against accidents and injuries, it typically does not extend to cover stolen property.

Does Business Liability Insurance Cover Theft of a Vehicle?

Standard business liability insurance doesn't cover the theft of vehicles. For this, you'll need commercial auto insurance. This specialized policy protects your business vehicles against theft, accidents, and other potential risks. It's crucial for businesses that rely heavily on transportation, as the loss of a vehicle can severely impact their operations.

What About Catalytic Converter Theft?

Catalytic converter theft is a growing concern for businesses, especially those with a fleet of vehicles. Unfortunately, business liability insurance doesn't cover this specific type of theft. To safeguard against catalytic converter theft, you'll need to explore specialized coverage options or consider comprehensive auto insurance, which covers a wide range of risks, including theft and vandalism.

Does Liability Insurance Cover Theft by Employees?

Employee theft is a reality that many businesses may face. While it's disheartening, a standard business liability insurance doesn't cover theft committed by employees. To protect against this risk, you will have to look into employee theft insurance or consider a comprehensive business owners policy (BOP) that includes this type of coverage.

Does Business Liability Insurance Cover Fire and Theft?

In most cases, business liability insurance doesn't cover fire or theft. For comprehensive protection against these risks, you'll need to look into additional policies. As mentioned above, a business owners policy (BOP) is a good starting point, as it combines property insurance and general liability insurance to offer a more comprehensive coverage package.

The Happy Ending: How to Get Insurance That Covers Theft

To safeguard your business against theft, you'll need to consider additional coverage. Property insurance is a type of policy that can be added to your existing CGL policy. It specifically protects your business property, including equipment, inventory, and even the physical structure of your business premises, against various risks, including theft.

Choosing the right property insurance along with a business liability insurance depends on the nature of your business and the types of assets you need to protect. Hence, it's essential to evaluate the value of your property and its vulnerability to theft when selecting a policy.

Consult the Experts at Kneller Insurance

At Kneller Insurance, we specialize in tailoring business insurance solutions to meet the unique needs of businesses. Contact us today for a consultation and let us help you find the coverage that gives you peace of mind, even in the face of unexpected theft. Remember, protecting your business from theft is not only a smart financial move but also a proactive step towards ensuring its long-term success.

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