Does Commercial Property Insurance Cover Theft? Analysis

Yes, a commercial property insurance covers theft.

The policy can be useful for business owners to protect themselves if a theft causes them financial loss.

What Is Commercial Property Insurance?

Commercial property insurance is used to cover any commercial property.

It shields them from risks like fire, theft, and natural disasters.

Commercial Property Insurance
Does commercial property insurance cover theft: Photo source (Forbes)

Many types of businesses, including manufacturers, retailers, service providers, and nonprofits, have this coverage.

Often, it’s combined with other insurances like commercial general liability.

Examining theft coverage in Commercial Property insurance

Its policies can help provide financial assistance for the following:

  • Stolen inventory, equipment or supplies
  • Business interruption due to equipment theft
  • Any damage to the building or premises caused by the theft

Also read: Can I Insure Someone Else’s property?

Some common examples of covered theft incidents may include:

  • Burglary: Unauthorized entry into a building and property or asset theft.
  • Robbery: Theft by force, such as armed robbery or during a break-in.
  • Employee theft: This refers to any theft of business assets or goods committed by an employee.
  • Shoplifting: In a retail store, this refers to the theft of goods, such as merchandise or cash from a register.

The Extent Theft Related Coverage

Theft coverage differs based on your insurance policy terms. Typically, it includes business personal property like goods and inventory.

Commercial property insurance
Commercial property on theft: Photo courtesy (

Named Perils coverage

Some commercial property policies may offer named perils coverage, and it usually only covers specific risks, such as fire or theft.

If you have a named-peril policy in place for your business, it’s advisable to:

  • Carefully review your coverage options.
  • Consider adding a rider to help ensure more comprehensive protection.

Property to Consider for Commercial Property Insurance

Some particular places on your property to consider insuring include:

  • The building that houses your business, including if it is owned or rented
  • All office equipment, including computers, phone systems, and furniture, whether they’re owned or leased
  • Accounting records and essential company documents
  • Manufacturing or processing equipment
  • Inventory kept in stock
  • Fence and landscaping
  • Signs and satellite dishes

Factors Considered In a Commercial Property Insurance


Buildings in well-protected city/town areas cost less to insure than those in less protected or rural locations.


Building material influences premiums – fire-resistant materials lower costs, while combustible materials raise them.

Changes to structure affect ratings; consult an agent before remodeling. Wood elements in fire-resistant buildings negate rate reductions; fire-resistant interior components maintain good ratings.


Building use matters. Offices rate better than restaurants/auto shops.

Hazardous tenants lower ratings; neighboring risky businesses raise premiums.

Fire and theft protection

Proximity to hydrants/stations, fire alarms, sprinklers, and security systems impact rates.

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