What Is 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.

Key Takeaways

  • Broad form storekeepers' insurance is coverage provided to store owners in the event of theft or robbery, found under the burglary and robbery insurance policy.
  • Each policy tends to be tailored to the needs of the individual business, though generally, this form of insurance covers the basics from losses such as theft of merchandise, money, property fixtures, and equipment.
  • 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 a loss.

How Broad Form Storekeepers' Insurance Works

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.

What Is Covered Under Broad Form Storekeepers' Insurance?

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.

Broad form storekeepers' insurance may cover circumstances such as:

  • Loss of valuables, cash, merchandise, securities from a vault
  • 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)

Other times, this coverage is purchased separately or as riders. 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 a loss. If a business owner does not feel they have 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.