The purpose of loss prevention insurance is to establish coverage for your business in case of loss or theft. Almost every business, but especially the ones involved in the retail industry, does experience a loss that affects the bottom line when it comes to profitability. A loss of inventory means that the business owner has to work on replenishing products at a cost that cannot be replaced affecting profits that could have been used towards opening new locations, hiring new employees and growing the business.
Loss could occur due to:
- Employee Theft which has been, over the years, the largest cause for loss to retailers.
- External Theft which is usually the result of shoplifting, beak-ins, and robberies.
We all know how stressful it is to launch, run and sustain a successful business. Any kind of loss will add to your challenge.
As discussed in our previous posts, Business Insurance Protects for losses , it is crucial that you consider a comprehensive insurance policy that includes coverage for losses as well. This is also known as Business Income with Extra Expense Coverage. The Business Income portion of coverage will provide the amount of income you would have made had you not had a loss. The Extra Expense portion of coverage will provide a limit of insurance for new or additional expenses due to the loss. Click HERE to learn more.