Having a break-in occur at your business can be an unsettling experience. Knowing that your business premises can be breached—at any moment—leaving personnel, equipment, and inventory vulnerable is a distressing thought that can disrupt your daily operations and leave you feeling out of control.
Commercial crime has become a major problem for business owners. Retailers have witnessed a sharp increase in theft-related activities at brick-and-mortar locations, with most owners losing between $1,501 and $2,000 in retail theft each month, according to statistics from 2023.
According to a Freshbooks article, burglary and theft continue to be the most common insurance claims business owners submit each year, followed by claims related to water, wind, hail, and fire damage.
It might be misleading to say that organized retail crime is an isolated event only experienced by small companies. Big-box retailers have reported that in-store crime has become a growing problem, as theft cuts into their profits and begins to hurt their bottom line performance.
For a small, less established business, break-ins can be a costly experience that can leave a lasting mark on the business, its employees, and its customers. However, understanding the necessary steps to overcome such an experience can help business owners quickly pick up the broken pieces to recover and navigate the road ahead.
Notify Authorities
If you are unfortunate enough to have been a victim of a burglary, you are advised to notify the local authorities immediately. If the crime occurred while you were not at your store, try not to touch or move anything until responding personnel have arrived.
During this time, it’s important to remain calm and seek to recover as much information as possible about the circumstances surrounding the burglary. Gathering the necessary information will help when you submit a claim with your insurance provider.
In addition to this, take note of the crime reference number, as you will have to include this with your insurance claim. Should the authorities not have taken any photos, ensure that you do so for your personal record and to help support your insurance claim.
Part of your declaration will include a list of all the items you notice have been stolen from your premises. Try to include as many items as possible, including equipment, inventory, or any other items you may notice have been stolen. You can always come back to revise this once you have conducted a more thorough search.
Take Stock
Next, start taking stock of everything that has been stolen or damaged. You might notice that larger, more expensive items such as computers and similar devices were stolen. However, it’s only once you take a closer look that you might see that other, less frequented items may have been stolen.
Don’t make the mistake of not writing any of this down. Try to conduct a walk-through with an employee to help you identify any items that may have been stolen. Your list should also include items that may have been damaged or broken during the forced entry, such as doors, locks, and windows.
By keeping a record, you can be sure to have a paper or digital copy of these items that may be necessary for future reference. Make an effort to only include the items that you know have been stolen or damaged, as your insurance provider will need to verify this.
Secure Digital Devices
Most companies, even smaller enterprises, conduct most of their business online. If a computer or critical electronic equipment is stolen from your business, thieves may have access to your business information. This may include the data of your employees, customers, and other business-related records.
If this is the case, make an effort to immediately inform your information technology (IT) provider. By activating cyber security measures, you can restrict outsiders from accessing sensitive information and minimize future cyber attacks.
You might need to update all of your account information, including things such as email addresses and passwords. Additionally, you can inform your bank about the recent incident and ask them to monitor your accounts for any suspicious activity if you feel the burglary could lead to more malicious cyber activity.
File A Claim
Filing an insurance claim can be a lengthy process. You will be required to provide any relevant information to your insurance provider, including a list of equipment and inventory that was stolen or damaged during the break-in.
Insurance providers may have a limited period for which they allow business owners to make a claim following a burglary. Before you start the claims process, review your insurance policy to see what is covered and what you can include in your claim.
As we mentioned, the claims process can take some time, and you will need to allow several days, perhaps a few weeks, for the claim to be processed. Ensure you have gathered all the relevant information, statements, or records, as you might need to submit additional documents to your claims advisor.
Invest In High-End Commercial Security Systems
Investing in a high-quality security system may have taken a backseat during the early days of planning your business; however, the unsettling experience of dealing with a break-in and a burglary should motivate you to pursue more comprehensive security measures.
Modern commercial security systems have developed beyond bulky hardware components and now include an array of comprehensive security and surveillance systems, including closed-circuit television (CCTV) cameras, access control solutions, intrusion detection, carbon monoxide alarms, and employee verification software.
Commercial security systems allow business owners constant monitoring, which can help detect potential threats and prevent unauthorized access to your business. Any business can fall victim to a burglary, and by being prepared, business owners can take more rapid action in the case of an intrusion.
Be Transparent With Employees And Customers
As an owner, you are responsible for communicating with your employees and customers about the recent break-in. By talking to employees, you inform them about possible weaknesses that the business may have experienced and how you will look to rectify these issues.
Your business might have to close for several days as you look to clean and fix any damages that may have occurred during the break-in. Make a clear announcement to your customers, as this will help keep them informed about the situation and the progress you have made following the incident.
Seek Available Funding Assistance
There are not a lot of people who talk about the financial loss a person may experience during a break-in. Having expensive equipment stolen, damaged, missing inventory, or even losing several days of business can set you back. You have to cover cleaning and repairing any damages before your insurance has processed or approved your claim.
Fortunately, in some states, funding assistance may be available for small businesses that have been financially impacted by theft or burglary. The best place to start is with the local business bureau to see whether any available programs can help cover some of the expenses related to the incident.
Moving on from this, you may consider whether there are any state-level assistance programs. For instance, in New York, the new state budget will include a $5 million tax credit to help small businesses improve their security measures. In addition, a $3,000 tax credit has been set aside for small enterprises that meet the eligible spending threshold on retail theft prevention.
Moving On From The Break-In
There’s no telling whether your business will fall victim to a break-in and the severity thereof. However, as a business owner, you must employ the necessary safety measures to counter a possible intrusion or minimize the potential of in-store theft.
By having a proactive security plan in place–and investing in the appropriate commercial security systems, you can protect your business and all its contents. As a business owner you have a lot to consider, however, when it comes to a break-in, prevention is better than cure.
Featured Image Credit: Photo by Anna Shvets; Pexels
