Burglary Insurance
Protection Against Break-Ins And Theft
A fire policy does not pay when thieves cut a shutter at night and empty your showroom or godown. Burglary insurance covers stock, furniture, equipment and cash in a locked safe stolen through forcible and violent entry, along with the damage done to the premises. It suits shops, offices, warehouses, clinics and factories. The cover is simple on paper, but the wording on forcible entry, the basis of sum insured and the security you promise all decide whether a claim is paid.
What Burglary Insurance Covers
Stock And Contents
Goods, raw material, furniture, computers and equipment stolen after forcible and violent entry into the insured premises.
Cash In Safe
Cash and valuables kept in a locked safe, where the safe is broken open or removed by the burglars.
Damage To Premises
Repair of broken doors, shutters, locks, windows and walls damaged during the burglary or attempted burglary.
Hold-Up At Premises
Theft by threat or use of violence against you or staff at the premises, where included in the wording.
First Loss Option
Insure a realistic maximum loss instead of full stock value, which reduces premium for bulky, hard-to-steal goods.
Riot Extension
Optional cover for theft during riot, strike and malicious damage, which the base wording otherwise excludes.
What is burglary insurance?
Burglary insurance covers loss of property from your premises caused by theft following actual forcible and violent entry or exit, and the damage done to the building in the process. It is a separate policy, or an add-on to a fire policy, because standard fire wordings pay for theft only when it follows fire, flood or another insured peril.
It is part of our property insurance range and is often bought alongside the fire cover for a shop, warehouse or office.
What the policy covers
- Stock in trade, raw material and finished goods
- Furniture, fixtures, fittings, computers and office equipment
- Cash, jewellery or other valuables kept in a locked safe, if declared, where the safe is broken open or carried away
- Damage to the premises, such as broken shutters, doors, locks, grills and windows
- Theft by hold-up or violence at the premises, where the wording includes it
Forcible and violent entry
This phrase is the heart of the policy. Insurers need visible signs that the burglars broke in or broke out: a cut shutter, forced lock, broken window or breached wall. If goods simply disappear with no sign of force, the claim is usually declined. Theft by someone who had keys or was allowed in is not burglary under the policy.
What is not covered
- Theft by employees, family members or anyone lawfully on the premises. This is the role of fidelity guarantee insurance.
- Shoplifting and losses found only during stock-taking
- Theft during riot, strike or civil commotion, unless the riot extension is added
- Property in the open, in vehicles or in transit
- Cash kept outside a locked safe, or cash in transit, which needs money insurance
- Premises left unoccupied beyond the period stated in the wording without informing the insurer
- Losses where the security conditions you declared, such as a guard or alarm, were not in place
How the sum insured is decided
Full value basis
You insure the total value of stock and contents at the premises. If the value at the time of loss is higher than declared, the claim is reduced in proportion. Stock should be insured at its peak level, not the average.
First loss basis
A burglar cannot carry away a whole warehouse of steel pipes or cement bags. On a first loss basis you insure a smaller amount representing the likely maximum loss in one incident, and pay a loading on the rate. Claims are paid up to that first loss amount. This suits bulky goods and large godowns.
Declaration basis
Where stock varies sharply through the year, some insurers accept periodic declarations of stock and adjust the premium at the end of the year.
What drives premium
Premium depends on the trade, how attractive and portable the goods are, the location, construction of the building, and the security you have: shutters and locks, alarms, CCTV, watchmen and whether the premises are occupied at night.
How a claim works
- Do not disturb the scene more than necessary, and photograph the entry points and damage.
- File an FIR at the local police station immediately. The claim cannot proceed without it.
- Inform the insurer and MILES within the time limit in the policy.
- Prepare a list of stolen items with purchase invoices, stock registers and the last stock statement.
- Cooperate with the surveyor's inspection and share CCTV footage if available.
- Submit the final police report where the insurer asks for it. The claim is then settled.
If stolen goods are later recovered, the insurer is entitled to them, or the claim is adjusted.
How MILES helps
- We decide with you whether full value or first loss gives better protection per rupee of premium.
- We check that the security conditions on the schedule match what you actually have, so a claim is not declined on a technicality.
- We place burglary alongside your fire policy, such as Bharat Sookshma Udyam Suraksha, under one renewal date.
- We compare terms across 16+ insurers and guide you through FIR, documentation and surveyor visits after a loss.
Cover, exclusions and premiums depend on the insurer’s policy wording and underwriting. MILES Insurance Brokers Pvt. Ltd. is an IRDAI-licensed direct broker (Life & General, Reg. No. 954); the insurance is issued by the insurer. Insurance is the subject matter of solicitation.