For small business owners, burglary and theft continue to be one of their most common property and liability insurance claims. The risks can be reduced, but it requires a proactive effort to implement preventative measures. This includes practical measures like employee screenings, physical controls, as well as proper lighting and video monitoring that can help reduce exposures.
Burglary and theft are the second most common claims made by small businesses, according to The Hartford's 2025 claims analysis report, which reviewed claims from more than 1 million small-business property and liability policies over the past five years. The report reinforces the reality that theft is one of the top sources of loss faced by many small business owners.
The threat has been consistent over the last decade. In 2015, a similar analysis of The Hartford's claims data indicated that burglary and theft accounted for roughly 20% of small business property claims, a number that hasn't decreased in a decade. Losses have been steady, and the risk remains a persistent part of what small businesses face daily.
Ongoing business risks
Why have burglary and theft remained consistent risks for small businesses? The answer can be found in the underlying risk of loss, which has not changed, even though the tools that businesses use and the environments they operate in have changed over the years.
It is no secret that well-managed, efficient businesses rely on structure and consistency. From an operational standpoint, this consistency is a strength. However, from a burglary and theft perspective, those predictable patterns can make it easier for bad actors to understand or observe internal procedures from the outside.
For small business owners, it is not realistic to disrupt efficient operations simply to create deterrence for theft. The practical response is to recognize where vulnerabilities to criminal opportunity exist and actively account for them by layering preventative, proactive measures on top of normal day-to-day operations.
How to reduce small business theft exposure
Deterring burglary and theft starts with understanding where exposure exists across business operations. For example, risk exposure may be tied to internal accountability, i.e. who has access. It can also relate to how the business may be perceived from the outside, i.e. what signals the environment sends about oversight and controls.
While businesses do well sometimes to invest in external security features, they sometimes misplace strengthening internal access controls, or vice versa. Businesses are better protected when physical security and internal controls are aligned; addressing one without the other leaves gaps.
The slideshow above illustrates concrete steps that can help small business owners manage access, visibility and monitoring in day-to-day operations.
Pete Hill is chief underwriting officer for Small Business at The Hartford. To learn more, agents, brokers and small business owners can visit The Hartford's Insights Center.
This article is published with permission from The Hartford and may not be reproduced.
(Lead image credit: stnazkul/Adobe Stock)
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