Crime Insurance - When Crime Occurs

by Karen Murphy, MostChoice.com

Imagine you arrive at work one morning only to discover your office has been broken into and your equipment stolen. Or worse, a burglar has just robbed your store and held you and your employees at gunpoint. What do you do now? What is your next step? The minutes and even seconds after a crime occurs at your business are crucial moments in recovering your losses and tracking down the perpetrator. Are you prepared to take charge after such an event?

As well as having a plan that details what to do during a crime, all business owners should have a plan detailing what to do after a crime occurs. If shared with your employees, this type of plan can increase the odds of recovering your losses. It may also save someone's life.

The Plan

A good after-the-crime plan should include not only steps for preserving evidence, but also how to report the claim to ensure coverage. After all, if the police don't find the thief, money from your insurance company will be the only way to recover your losses.

Ensuring safety and preserving evidence should be on the top of your list when it comes to dealing with crime. Outlined below is a general guideline to follow in the event of a burglary, however, you can adapt this to most crime situations. Remember, speed is vital.

• When safe to do so, look outside for vehicle leaving or direction of flight.
• Telephone the police. Give the description of thieves and cars, and means and direction of escape.
• Lock up the shop, and let only the police enter.
• Do not touch where the robber touched and do not try to determine the loss at once if it means touching something.
• Preserve anything left behind by the thief.
• Keep customers who witnessed the crime on the premises until the police arrive. If they are adamant about leaving, get their names and addresses.
• Write down time and details of events -- you will soon forget the smaller points.
• Do not discuss events or descriptions until police have arrived. If approached by news reporters, do not divulge the amount of money stolen. When newspapers, television or radio reports indicate a large loss, other robbers will be attracted to your store.
• Cooperate with the police.
• Check whether you are insured and notify your insurer.
• Provide all assistance and documentation to insurer or representative - including the police crime reference number.
• Once the claim is settled, recovered goods belong to the insurer. You must notify the insurer immediately in the event of recovery.

So, it is important that you call the police, gather your witnesses and contain the crime scene as quickly as possible. When calling the emergency 911 number, you should be able to provide when and where the incident occurred; if anyone was injured; if and what type of weapons were used; the description of the vehicle and the suspect; and your name, address and telephone number.

Be sure you get a crime reference number from the police, confirming that the crime has been registered on their system. You must have this in order to pursue a successful claim under any insurance policy.

Reporting Claims

Once you have successfully reported the crime and complied with the police, you need to make sure that your insurance policy will, in fact, cover your loss. You will have a better chance of receiving coverage if you own crime insurance than if you own a general insurance policy -- especially if the crime was committed by an employee.

If you find your loss is indeed covered, you should immediately contact your insurer to notify them of the incident and the likely cost of the claim. This will help them determine the next step to take in the claims process. Depending on the cost of the claim, the insurer may ask you to fill out a claims form with the police reference and estimates for repairs or replacements. Or, in the case of a larger claim, they may appoint their own claims inspector or an external expert to undertake inspections.

Your policy will dictate whether the insurer will replace or repair your property, or whether they will pay you a cash settlement for the property. Be sure to find out what your policy says about this before you begin a discussion with your insurer. Do not try to replace your property without the consent of the insurer. It may return to haunt you.

Beef Up Security

Remember that once you have been burglarized, statistics show that you are at a much higher risk of being hit again. Take this opportunity to immediately upgrade your defenses and make contingency plans in the event of another crime. (See Tips for Prevention)

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