In commercial crime insurance, premises burglary generally refers to theft of covered property from the insured premises that meets the policy’s definition of burglary. Many forms require evidence of unlawful entry (often forcible entry) and tie coverage to property taken from inside the premises during a covered time period.
Because crime forms and endorsements define terms differently, always read the specific insuring agreement and definitions that apply.
Burglary vs robbery vs theft
In crime coverage, these words are not interchangeable:
- Burglary typically involves unlawful entry to steal property.
- Robbery involves taking property by threat or force (for example, holding up a cashier).
- Theft is a broader term that may include burglary and robbery, depending on the form.
The distinction matters because each cause of loss may be covered under a different insuring agreement (or excluded).
Common coverage mechanics and limitations
Premises burglary coverage often turns on details such as:
- Location and custody: Coverage may be limited to property inside the premises, and may exclude property in the open or off premises.
- Evidence requirements: Some forms require visible signs of forced entry or exit.
- Property types and sublimits: Money, securities, and inventory may have different limits, deductibles, or conditions.
- Other crime causes: Employee theft, forgery, and computer fraud are commonly separate coverages, not part of premises burglary.
Claims handling considerations
To support a premises burglary claim, insurers commonly request:
- prompt notice and a police report
- documentation of ownership and values (inventory records, receipts, photos)
- evidence supporting the policy’s burglary definition (for example, the point of entry)
- a proof of loss showing what was taken and when
Coverage outcomes often depend on the form language, the facts, and the documentation.
Underwriting and risk controls
Because burglary frequency and severity are influenced by controls, underwriters may consider items like alarms, locks, lighting, safes, key-control practices, and prior loss history when pricing and offering terms.