Does General Liability Cover Theft?

A business that discovers missing money, inventory, or equipment generally has a first-party loss rather than a third-party liability claim. CGL is not a general theft policy. The California Department of Insurance separates crime and property coverages from casualty lines such as general liability. A different liability analysis may be needed if a third party alleges your business caused damage during an incident, but theft itself does not make the CGL policy respond.

Identify what was stolen, who owned it, where it was located, and whether an employee or outside person was involved. Then check the commercial property or crime form for covered property, theft conditions, safeguards, valuation, deductible, and notice requirements. For property regularly taken off premises or transported, ask whether inland marine coverage is needed.