The Paradox of Insurance Coverage for Vandalism But Not Theft
Standard commercial property insurance policies often include coverage for vandalism, but not theft: “Covered Causes of Loss means the following: . . . Vandalism, meaning willful and malicious damage to, or destruction of, the described property. We will not pay for loss or damage caused by or resulting from theft, except for building damage caused by the breaking in or exiting of burglars.” Provisions like these, covering vandalism but not theft, have been frequently litigated; the result has been a jumble of confused and conflicting judicial decisions. The present article begins with a case the author litigated and uses it as a springboard to illustrate, and hopefully illuminate, murky issues relating to property insurance that covers vandalism but not theft. Read More …