Commercial real estate insurance can help to protect businesses from liability. Policies can also ensure that organizations have coverage to pay for repairs after major storms or other incidents leave a commercial facility damaged.
Occasionally, the origins of property damage are clearly human. Criminals attempting to rob a business, for example, might break windows, knock down walls or even drive their cars through a storefront facade in an attempt to access money or merchandise.
Can commercial insurance providers limit payouts when crime is the underlying cause of property damage?
Crime coverage is typically standard
While there may be a person to blame for crime-related property damage, that individual likely lacks the resources necessary to pay for repairs. Legal action against a criminal convicted of theft offenses and property damage crimes related to their attempt to access the commercial facility could result in a judgment in favor of the business, but collecting on that judgment could be difficult.
Thankfully, commercial real estate insurance policies generally include protection for crime-related incidents. While the insurance company might be able to subrogate the claim by taking independent legal action against the criminal or other potentially liable parties, the company typically cannot deny coverage or justify an unreasonably low settlement offer simply because criminal activity was the source of the property damage.
Reviewing commercial real estate insurance paperwork, police reports and other records of a criminal incident can help business leaders to secure the capital they need to repair their facilities. Negotiating a claim is likely to be complex and costly, so policyholders may need legal representation as they pursue the coverage they deserve, and that’s okay.