Does Business Insurance Cover Vandalism?

Businesses are susceptible to vandalism at any moment. While some natural disasters and extreme weather occurrences can be predicted in order to plan for potential property damage, vandalism is typically completely random. Due to the unpredictability of these events, commercial property owners should be aware of what is covered by their insurance policies in the event of vandalism.

Commercial Property Insurance Protection Against Vandalism

Depending on the extent of the damage, theft or vandalism can result in thousands of dollars in repair expenditures for a business. In addition, if clients and customers learn of a break-in or mischievous activity on the premises, they may be less motivated to patronize the firm out of fear. Knowing which sorts of vandalism are covered by insurance can provide business owners with peace of mind, despite the fact that this can be highly unsettling.

Acts of vandalism and mischief are frequently grouped together as behaviors that intentionally cause damage to or destruction of property. While vandalism is defined as the intentional destruction of another person's property, harmful mischief need not be intentional. Coverage for vandalism and malicious mischief safeguards businesses against losses incurred as a result of vandals' actions. Nevertheless, if the property is uninhabited at the time of the incident, a greater deductible normally applies.

Fortunately, the majority of acts of vandalism, mischief, riot, civil unrest, and looting are covered by business property insurance. Commercial property insurance policies provide protection on a designated peril or all dangers (or open) basis. Named hazard plans to give coverage for certain forms of loss that are clearly named, whereas an all-risk policy provides coverage for all forms of loss other than those explicitly excluded.

For instance, graffiti, fire, and water damage to structures are typically covered. Broken windows are typically covered as well, but some plans may limit coverage for plate glass windows without an endorsement. Typically, commercial property insurance will cover vandalism-related damages, including the expense of removing garbage and graffiti and repairing the following:

Storefronts
The residence's interior
Broken windows

In these instances, business interruption coverage can be employed if the property must be closed for cleanup and repairs. This can allow property owners to recover normal operating expenses incurred while the business is temporarily closed.

There are cases in which theft and vandalism are not covered by insurance, despite the numerous methods in which theft and vandalism might be insured. Vandalism and malicious mischief damages are not covered if a commercial property has been uninhabited for at least 60 days in a row. This is especially problematic for organizations that utilize office space infrequently. In addition, if the insured commits vandalism, the subsequent damage is not covered by their business property insurance coverage. If a business conflict has occurred, an unhappy employee may return to the workplace out of spite and wreak damage.