Theft of deliveries or shipments can be a significant concern for businesses during the busy holiday season when inventory levels and shipping activities often increase. Whether or not these losses are covered by your business insurance depends on the specifics of your policy and the circumstances surrounding the theft.
Understanding Coverage for Theft of Deliveries
Most standard commercial property insurance policies include protection against theft of goods, but the extent of the coverage can vary if the shipment is stolen while in your possession—such as being stored in your warehouse or retail space—it is likely covered under your policy. However, theft occurring during transit might require additional coverage, such as inland marine insurance, which is specifically designed to protect goods being transported.
Third-Party Carriers and Coverage
Should you handle your shipments via outside carriers, their responsibility rules could offer some defense. These rules can have tight restrictions, though, and it may not be feasible to fully value taken items. In these situations, the required financial security can come from having your own insurance coverage covering goods en-route.
Holiday-Related Hazards
Holiday shipping spikes may lead to more frequent deliveries and overworked logistical systems, which raises the possibility of theft. Criminals exploit seasonal unrest to target delivery vehicles, warehouses, and even porches. Review your company insurance policy before the holidays to be sure your goods are sufficiently covered—that is, whether theft occurs at delivery or on route.
Steps to Minimize Risk
To reduce the likelihood of theft, businesses can implement security measures such as:
- Using tamper-evident packaging.
- Employing secure storage facilities.
- Working with reputable shipping companies that offer tracking and insurance options.
- Ensuring delivery personnel follow strict protocols during drop-offs.
Filing a Claim for Holiday Theft
If a theft happens, make sure to keep detailed records of the event, including police reports, photos, and evidence of the stolen items' worth or ownership. To begin the claims procedure, notify your insurance as soon as possible. Be advised that because to the large number of events that occur during this time, claims regarding shipments related to holidays may need more investigation.
In conclusion, if you have the right coverage in place, your company insurance may cover theft of shipments or deliveries made during the holidays. To protect your items during this busy season, review your coverage and take preventative measures.