Broad Form Storekeepers' Insurance

Broad form storekeepers' insurance is coverage provided to store owners in the event of theft or robbery. This insurance is found under the burglary and robbery insurance policy.

This type of insurance covers losses such as theft of merchandise, money, property fixtures and equipment in the event of a break-in. Very large businesses build the cost of so-called shrinkage into their cost structure, but for smaller businesses these losses are not as readily absorbed. Each policy tends to be tailored to the needs of the individual business. 

Many Broad Form Storekeepers' policies cover the three Ds - dishonesty, destruction and disappearance. This might include losses from employee theft, loss of money through burglary, robbery or disappearance under unknown circumstances, as well as accepting counterfeit currency. Damage to the business from a break-in is typically covered as would be check forgery.

The policy may cover the following or these can be purchased separately or as riders: Loss of valuables such as cash, merchandise or securities from a vault and reparation of damages to the safe or vault. Coverage for burglary or robbery of merchandise on the shop floor including furniture and fixtures. Reimbursement for stolen or kited checks from the business. Thefts or shortage from bonded employees, e.g., those who handle money or books.

Costs for these coverages can vary widely depending on the nature of the business, its record of thefts and losses, where it's located, the security of the premises, number of employees, value of the merchandise and equipment and more. 

For many businesses, these policies can come with big deductibles to keep the premiums affordable, the idea being that losses up to a certain point would be self-insured.

There are many types of insurance for businesses including coverage for property damage, legal liability and employee-related risks. Companies evaluate their insurance needs based on potential risks, which can vary depending on the type of environment in which the company operates.

It is especially important for small business owners to carefully consider and evaluate their business insurance needs because they may have more personal financial exposure in the event of loss. If a business owner does not feel he or she has the ability to effectively assess business risk and the need for coverage, they should work with a reputable, experienced and licensed insurance broker. You can obtain a list of licensed agents in your state through your state's department of insurance or the National Association of Insurance Commissioners.