Why protecting your assets with burglary insurance matters?

Burglary is a security issue, and if not taken care, it can also become a business continuity risk. Across India, commercial premises such as shops, warehouses, offices, and small factories remain frequent targets because they store valuable and movable assets. When a burglary happens, the impact is rarely limited to what is stolen. Businesses often face:

• Direct financial loss of stock, equipment, or devices.
• Physical damage to doors, shutters, storage units, and interiors.
• Operational downtime while repairs, audits, and replacements are arranged.
• Missed deliveries, delayed projects, and customer dissatisfaction.

Without insurance, all of this is paid for from the company’s own cash flow. Burglary insurance exists to absorb this shock and protect the business from sudden, unplanned financial strain.

Burglary insurance meaning

In insurance terms, burglary insurance covers loss or damage to insured property caused by theft following forcible and violent entry or exit from the insured premises. Two things must be present for a valid burglary claim:

1. There must be theft or attempted theft, and
2. There must be visible physical evidence of forced entry or exit, such as broken locks, damaged shutters, or forced doors.

Difference between burglary and theft

This distinction is critical in insurance because burglary is covered under a burglary insurance policy, while theft usually is not.

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In simple terms, if there is no physical proof of forced entry or exit, the incident is treated as theft and a burglary insurance policy will not respond to the claim.

How burglary insurance protects assets, furnishings, machinery, and inventory

A properly structured burglary insurance policy can cover:

• Stock and inventory stored at the insured location.
• Plant, machinery, and equipment.
• Furniture, fixtures, fittings, and office infrastructure.

Coverage applies when these assets are stolen or damaged during a burglary event as defined in the policy.

Who you should buy burglary insurance?

Burglary insurance is not limited to any one industry. It is essential for any business that depends on physical assets to operate smoothly. It is particularly important for:

• Retail stores and showrooms that stock high-value or fast-moving inventory.
• Warehouses and distribution centers where large volumes of goods are stored in one location.
• Manufacturing and processing units that house costly machinery, tools, and raw materials.
• Offices with expensive IT equipment such as servers, laptops, networking devices, or specialized hardware.
• Any business that stores valuable physical assets on-site, whether stock, equipment, or fixtures.

Important: If the sudden loss or damage of physical assets would disrupt your operations, delay deliveries, or put financial pressure on the business, burglary insurance should be a core part of your risk protection strategy, not an optional add-on.

Types of burglary insurance plans

Infographic: Types of burglary insurance plans

• Full value
• First loss
• Stock declaration

Full value insurance

Under full value insurance, assets are insured for their entire declared value. In the event of a loss, the insurer pays based on the actual loss, up to the full sum insured. This is suitable for:

• High-value machinery
• Critical equipment
• Businesses that cannot afford partial recovery

First loss insurance

First loss insurance is based on the idea that not all assets will be stolen at once. Instead of insuring the full value of stock or contents, the business insures only the maximum probable loss. The insurer pays losses up to the first loss limit, even if the total value of assets on-site is much higher. This is commonly used for:

• Warehouses
• Large inventories
• Storage locations with diversified stock

Stock declaration insurance

In businesses where stock values change frequently, a fixed sum insured may not reflect real exposure. Under a stock declaration policy:

• The business periodically declares stock values.
• Premium is adjusted based on the average declared value.
• Coverage stays aligned with actual stock levels.

Burglary insurance coverage: Inclusions

Typically, a burglary insurance policy covers:

• Loss or damage to stock and inventory.
• Damage to machinery, equipment, and tools.
• Damage to furniture, fixtures, and fittings.
• Repair or replacement of doors, windows, locks, and shutters damaged during burglary.

All coverage is subject to:

• The sum insured
• Policy conditions
• Proper security and safety compliance

Burglary insurance coverage: Exclusions

Most burglary insurance policies do not cover:

• Theft without forcible entry or exit.
• Loss caused by employees or insiders.
• Loss due to fire, flood, or other natural calamities.
• Loss from unattended or unsecured premises.
• Mysterious disappearance without evidence of burglary.
• War or civil disturbances (unless specifically added).

Note: Understanding these exclusions is essential to avoid surprises at the time of a claim.

Advantages of burglary insurance

• Protects capital invested in physical assets.
• Reduces financial shock from sudden losses.
• Helps businesses resume operations faster.
• Supports business continuity planning.
• Improves overall risk management structure.

How does a burglary insurance policy work?

1. You declare the assets and choose the sum insured.
2. The policy is issued for the insured premises.
3. A burglary occurs involving forced entry or exit.
4. You file a police complaint and inform the insurer.
5. A surveyor assesses the loss and damage.
6. The insurer settles the claim as per policy terms.

Why you need burglary insurance

Fire or property insurance does not automatically cover burglary losses. Without a dedicated burglary policy, losses due to break-ins come directly out of your business funds. As companies grow, the value of assets and stock at risk also increases. Burglary insurance ensures that one incident does not turn into a long-term financial setback.

To learn more about burglary insurance, you can also read:https://www.pazcare.com/commercial-insurance/burglary-insurance