For Retail Business In Minnesota, theft is one of the biggest insurance risks that your business will face. Whether it’s shoplifting, internal theft or organized retail crime; theft can seriously affect your profit margin.

• According to the National Retail Federation (NRF)’s 2024 survey, retailers reported a 93% increase in the average number of shoplifting incidents in 2023 versus 2019 — and a 90% increase in dollar losses from shoplifting in that same period.
• Nationally, stores are estimated to have lost approximately $45 billion to retail theft in 2024. Capital One Shopping+1
• In Minnesota, data from 2022 shows retailers lost about $1.453 billion in revenue to theft (external and internal) in that year, with per-capita losses of about $328.61. Capital One Shopping+1 Also, Minnesota is listed in a 2024 retail real-estate report among the top states most impacted by retail theft: “accounts for 10% more retail crime than expected based on its share of the population.” Faegre Drinker
• While I could not locate a specific publicly-published figure for Minnesota retail theft in 2024, national data indicates shoplifting-rates rose another ~14% in 2024 vs 2023 in the cities sampled. My WordPress
• Key takeaway: theft is rising, and it’s more than just the stolen item cost. The ripple effects include increased security costs, higher insurance premiums, shrinkage affecting margins, and operational disruption.

Why This Matters for Your Retail Business:

1. Profit margin squeeze – When merchandise disappears (whether by shoplifter or employee), you still pay for the cost, potentially without any margin. Over time, this eats into profits.
2. Insurance costs & eligibility – Insurers will view a business with a high theft risk or frequent losses as higher risk. That can mean higher premiums, stricter coverage limitations, or difficulties getting certain endorsements.
3. Operational disruption – Theft can force you to spend more time/money on loss prevention (security cameras, tags, staff training), diverting focus from sales and growth.
4. Reputation & employee morale – Frequent theft can create a climate of insecurity for your team and affect customer perception.
5. Coverage gaps – Many retail risks are not covered by a basic business owner policy. For example:
   • Are you covered for “shrinkage” (inventory losses) or only for physical damage?
   • Do you have protection for organized retail theft (ORC) events?
   • Does your policy reflect the increased exposure you face from theft and the associated business interruption?

What Retail Insurance Should Address / Questions to Ask:

• Does your policy cover external theft (shoplifting) and internal theft (employee theft)?
• Does your policy contain an inventory-limit or deductible for theft losses?
• Is “business interruption” included if you must temporarily close due to a theft incident (for investigation, repair, security upgrade)?
• Are you covered for damage resulting from theft (for example, forced entry, broken fixtures)?
• Do you have an adequate liability component if a theft incident leads to customer or employee claims (e.g., someone injured during a theft event)?
• Given the increased risk in Minnesota retail, are you properly documented in loss prevention to maintain favorable underwriting (security systems, employee training, incident logs)?

Call to Action:
If you operate a retail store in Minnesota — whether a boutique, convenience store, specialty retail, or chain outlet — let’s review your insurance coverage together. We can see whether your current policy addresses the rising theft risk, examine your loss history, and evaluate whether there are cost-effective endorsements or upgrades that make sense for your business.
Contact us at Ameriguard Insurance Agency 763-767-0522 to schedule a review today.