Robbery Insurance

What Does Robbery Insurance Mean?

Robbery insurance protects against loss or damage to property caused by coercion, violence, or threats of violence.

Robbery, along with theft and burglary, is typically included in standard personal and commercial property insurance policies. However, some specific types of robbery may require additional coverage as a specified peril or through a separate insurance policy.

Insuranceopedia Explains Robbery Insurance

Insurance for both commercial properties and residential buildings often includes coverage for man-made perils such as theft, burglary, and robbery. When such an incident occurs, the insurer is notified, and an investigation is conducted to rule out foul play before processing the claim.

Burglary involves unlawful entry without confronting the victim, which is why burglary coverage and robbery coverage are sometimes itemized separately on a property policy. On the residential side, homeowners insurance that covers theft usually responds to robbery losses too, though insurers cap payouts for valuables like cash, firearms, and jewelry.

However, certain types of robbery may be excluded from a property insurance policy or only partially covered. In such cases, the policyholder can add a rider or purchase a separate policy to obtain the necessary coverage. Businesses with higher exposure, like retail stores or cash-handling operations, often layer commercial crime insurance on top of their property policy to cover employee theft, forgery, and money taken during a robbery.

For example, messenger robbery insurance can provide coverage for losses or damages to goods that are forcibly taken from an employee while they are off the insured property.