Just released: How to raise venture capital in 2023


What is a theft exclusion?


Key Takeaways

Matt McKenna Scale Underwriting
Matt McKenna

Underwriting Manager

…and why is it in a holiday blog post?

Two great questions! As we approach the holiday season, closing out year-end projects and dreaming about dancing sugar plum fairies and swelling Amazon carts, it’s important that we focus on what’s important to us.

We at Founder Shield know that while most people say the important things are “family, friends, and loved ones,” what they really mean is “commercial property insurance terms and conditions” and the potential for “lender loss.” Don’t worry, we hear you.


Why does this matter?

It’s recognized that the holiday season gives us some unique motivations for committing property crime. Vice covered this while also highlighting the increased risk of cyber crime (covered by either cyber insurance or crime insurance).

Most companies have property insurance (and those that don’t probably should), but how do these policies respond to theft or burglary? The disappointing answer is “it depends,” but we can absolutely shed some light here.


What is property insurance?

First off, property insurance is designed to reimburse the company if their property suffers a “covered loss.” This almost always includes a loss like an office fire, but what else is covered?

A good commercial property policy will include coverage for theft in the main policy form, but may then go on to exclude the coverage by adding a “theft exclusion endorsement” to the policy. This may still be a good policy, we just need to get the endorsement removed if possible.


What is a theft exclusion and how do I get it removed?

Many underwriters are comfortable offering theft coverage as long as you have a central station burglar alarm. This will provide enough assurance for many (but not all) underwriters to extend the coverage without any additional premium or underwriting. This will also depend on the amount and type of property being insured, but in most cases this process isn’t complicated.

Even if you can’t get a commercial property insurance policy with the theft coverage included, there are versions of the “theft exclusion” that are better for you than others.

You don’t want an exclusion that says “we will not pay any loss caused by theft.” Much more palitable is an exclusion that starts with “we will not pay any loss caused by theft” BUT then goes on to say that it will cover things like

“Loss or damage that occurs due to looting during a riot or civil commotion or building damage caused by the break-in and entry/exit of burglars.”

This, at the very least, offers coverage for insurable risks associated with any ancillary damage incurred during the theft, even if it doesn’t encompass the full value of the stolen property itself.


Want to know more?

Make sure you’re working with a qualified broker who can spot these differences, tell you what you need and find the right underwriter who can offer a policy tailored to your needs.

You can contact us at info@foundershield.com or create an account here in order to get a quote for a property insurance policy with theft coverage included.

Want to read more on the subject?  Check out our other blog posts on property insurance.

Related Articles

June 22 • Property

Property Insurance for Crypto Mining Facilities — What’s the Big Deal?

Crypto mining facilities are popping up more and more nowadays, especially with cryptocurrency wildly popular. Here’s why property insurance for crypto mining real estate is such a big deal.

insurance for biotech companies
August 29 • Directors & OfficersProperty

Insurance Guide for Biotechnology Companies

Our guide to insurance for Biotechnology companies. What risks do Ag-biotech & Biopharma face? What policies do they need?

dockless scooters featuredv
August 22 • Cyber LiabilityGeneral LiabilityProperty

Growing Pains: The Future of Electric Scooters and Bike Sharing

Electric scooters and dockless bikes are popping up everywhere. We dive into risk management and the future of the industry.

protect traveling employees
March 15 • General LiabilityPropertyRisk Management

How do companies protect traveling employees?

Technology may be breaking down geographic barriers but that doesn’t mean sending your employees overseas is getting any safer. Businesses whose employees travel internationally are familiar with these risks. But how do they protect traveling employees? Every company faces unique challenges, yet certain risks are ubiquitous across industries. We’ll delve into why these risks matter

insurance cover burst pipes
January 11 • General LiabilityProperty

Cold Weather Warning: Does your insurance cover burst pipes?

We’ve seen some intense weather over the past few weeks. Had you ever heard of a bomb cyclone before? Yea, us neither. What we do hear about — unfortunately way too often — is an insurance claim that usually accompanies cold weather: water damage from frozen plumbing. So does your insurance cover burst pipes? Let’s

navigating business property insurance blog post
March 14 • Property

Navigate your business property insurance policy as gracefully as a gazelle

Understanding business property insurance policy forms & the perils they cover Day to day business operations are strenuous enough.  And who has time to read through every line of their property insurance policy? We’re here to take on the legwork to ensure our clients are properly protected. Our goal is to simplify all of this industry-specific