Three questions can be used as guidelines in this regard. Fire insurance covers losses resulting from fire. A coinsurance clause is a part of a fire insurance policy that requires the policyholder to purchase coverage at least equal to a specified percentage of the replacement cost of the property to obtain full reimbursement for losses. Extended coverage is insurance protection against damage caused by wind, hail, explosion, vandalism, riots or civil commotion, falling aircraft, and smoke. Theft Insurance Burglary is the illegal taking of property through forcible entry.
Robbery is the unlawful taking of property from an individual by force or threat of violence.
Premiums vary with the type and value of the property covered by the policy. Business owners must also be concerned about crimes that employees may commit. A fidelity bond is an insurance policy that protects a business from theft, forgery, or embezzlement by employees. Individual employees or specific positions within an organization may be bonded. Although business owners are concerned about shoplifting, they often find that insurance coverage, if available, is too expensive.