A break-in at a shop, office or warehouse usually costs more than the stolen items. There is the stock and equipment you have to replace, the door or shutter that was forced, and the days you cannot trade while it all gets sorted out. Burglary insurance, and its close relatives money insurance and fidelity guarantee, exist to cover the theft side of that risk. This guide explains how they work for Malaysian businesses, what they typically leave out, and what to check before you buy.
This article is about business cover. Household burglary policies are a different product and are not covered here. It is general information, not advice on a specific policy, so always read the actual policy wording.
What burglary insurance covers for a business
A commercial burglary policy typically pays for loss of, or damage to, property at your insured premises caused by burglary or housebreaking. In practice that usually means:
- Stock and merchandise: goods held for sale, raw materials and work in progress.
- Furniture, fittings and equipment: computers, laptops, point-of-sale terminals, tools, cameras and similar office or shop contents.
- Damage caused by the break-in: forced doors, shutters, locks and windows, often as an extension you need to ask for.
The cover is tied to the premises named in the policy. If you run two outlets or a shop and a separate store room, each location needs to be listed with its own sum insured.
The "forcible and violent entry" condition
Most burglary policies pay when theft follows forcible and violent entry into, or exit from, the premises, and there is visible evidence of it, such as a broken lock, a cut padlock or a smashed window. That wording matters in a claim. Theft where nothing was forced, for example through a door that was left unlocked, may not qualify. It is worth asking your insurance broker or agency exactly how the policy defines entry and what evidence the insurer will expect.
What burglary insurance usually does not cover
- Theft by your own employees. This is the gap fidelity guarantee insurance fills. See our guide to fidelity guarantee insurance.
- Shoplifting and unexplained stock shortages. If stock is simply missing and nothing was forced, a burglary policy generally will not respond.
- Cash and valuables, unless specifically included. Cash is usually handled under a separate money insurance policy or a limited extension.
- Fire, flood and accidental damage. These belong to fire insurance or an all risks policy.
- Lost income while you cannot trade. That is business interruption cover, explained in our business interruption guide.
- Data theft and hacking. That is a cyber insurance risk, not a burglary one.
Burglary, money, fidelity, fire and all risks: which one covers what?
These policies are often confused. Here is how they split the work:
| Policy | Main risk it covers | Typical example |
|---|
| Burglary | Theft of property after forcible entry | Thieves cut the shutter lock and take stock and laptops |
| Money | Loss of cash, cheques and takings | Cash stolen from a safe or on the way to the bank |
| Fidelity guarantee | Dishonesty by your own staff | A cashier or accounts clerk diverts company funds |
| Fire | Fire and named perils such as lightning | A fire damages stock and fittings |
| All risks | Accidental physical loss or damage, subject to exclusions | Equipment damaged by an accident on site |
Many small businesses are exposed to several of these at once, which is why they are often placed together as a package. Our checklist of what a Malaysian SME needs shows how they fit by business type.
Money insurance: covering the cash side
If your business handles cash, a burglary policy alone leaves a gap. Money insurance is designed for cash, cheques, postal orders and similar items, and it is commonly arranged in sections:
- Money in transit: cash carried between your premises and the bank, or between locations, including by an employee.
- Money on the premises: cash on the counter during business hours, or kept in a safe or strongroom after hours. Limits often differ between those situations.
- Money in the care of authorised staff: for example a collection route or a mobile sales team.
Money cover is usually priced against the most cash you expect to hold or carry at any one time, so it helps to work out your real peak figure, such as the day before payroll or after a busy weekend. Insurers also commonly ask how the cash is secured, for example in a locked safe, and how it is moved.
Getting the sum insured right
Underinsurance is one of the most common problems in property claims. If your declared stock value is lower than what you actually hold, the insurer may reduce the payout in proportion. A few practical points:
- Declare stock at the basis the policy asks for, whether cost or replacement value, and be consistent.
- Account for seasonal peaks. If your stock doubles before a festive season, ask whether the policy needs a temporary increase.
- List high-value items such as laptops, cameras or specialist tools clearly, since policies often cap how much they pay for any single item unless it is specified.
- Review the figures at every renewal, not just when you first buy.
Security conditions can affect your claim
Insurers often attach conditions to burglary cover. These can include working locks, grilles or shutters, an alarm, a safe of a certain standard, or a rule that stock is not left outside. If a condition is not met when the loss happens, the insurer may reduce or refuse the claim. Ask your insurance broker or agency which security measures your policy relies on, and keep them in working order. Good security can also make the policy easier to place.
Who should consider it
- Retail shops, mini markets and showrooms holding stock on the premises.
- Restaurants, cafes and clinics with expensive equipment and cash takings.
- Offices with laptops, servers, screens and other portable electronics.
- Traders, distributors and warehouses storing goods for customers or for resale.
- Landlords and tenants who are responsible for fittings, shutters and contents.
What to do after a break-in
- Make sure everyone is safe, then lodge a police report as soon as possible. Insurers will normally ask for it.
- Notify your insurer, insurance broker or agency promptly, in line with the policy's notification requirement.
- Do not tidy up or repair beyond what is needed to secure the premises until the loss has been recorded. Take photos of the damage and the entry point.
- List what was taken, with purchase invoices, stock records or serial numbers where you have them.
- Expect an adjuster to inspect the premises and assess the loss before the claim is settled.
Common mistakes to avoid
- Assuming burglary cover includes cash or staff theft. It usually does not.
- Insuring only the main premises and forgetting a store room or second outlet.
- Declaring last year's stock figure after the business has grown.
- Ignoring the security conditions in the policy.
- Waiting too long to report the loss.
Frequently asked questions
Is burglary insurance the same as fire insurance?
No. Burglary covers theft after forcible entry, while fire insurance covers fire and certain other named perils. Many businesses buy both, often together in one package.
Does burglary insurance cover theft by an employee?
Generally not. Dishonesty by staff is covered by fidelity guarantee insurance.
Does it cover cash?
Not normally. Cash is covered by money insurance, or by a limited extension if the policy offers one.
Will it pay if I was closed for several days afterwards?
Only if you also have business interruption cover. A burglary policy alone pays for the property loss, not the lost income.
Talk to us about your premises
Cover Buddies helps Malaysian businesses put together the right mix of theft, cash, property and liability cover. Tell us what you hold, where and how it is secured, and we will explain the options in plain English. You can request information, book a call or message us on WhatsApp. For the full picture of property cover, see our commercial insurance guide.
