California businesses are losing insurance as crime increases

Some California businesses may lose their insurance policies due to high rates of retail theft and other property crimes.

California Gov. Gavin Newsom met Wednesday with community leaders from Oakland to discuss crime in the city and across the state. According to San Francisco’s KRON-TV, community leaders included Oakland Metropolitan Chamber of Commerce President Barbara Leslie, who warned that some small businesses in the city were losing their insurance policies after experiencing several instances of retail theft or other property crimes.

“Insurance was brought up as an opportunity to ask the governor to help organizations and businesses that are losing their insurance because that is a real financial impact on small businesses that we need to address,” she said.

Leslie’s statements came amid ongoing discussions about the increase in retail theft and shoplifting in various parts of California. According to the Public Policy Institute of California, in 2022, the state saw a 28.7 percent increase in commercial shoplifting from 2021 and 2020. Target also announced in September 2023 that it would close several stores in California due to concerns about rising retail sales. theft.

“In this case, we cannot continue to operate these stores because theft and organized retail crime threaten the safety of our team and guests, and contribute to unsustainable business performance,” Target said in a statement.

Newsom recently announced new plans to combat retail theft and other property crimes in California by increasing criminal penalties and police response. Additionally, in December, Newsom’s office said the California Highway Patrol increased its response to organized retail theft by 310 percent throughout 2023. Newsom’s office said the number of arrests for retail theft also increased by 109 percent.

“As reports of organized retail crime increase nationwide, California is meeting the moment by leading more takedowns and making more arrests than ever before,” the governor said.

In April 2023, a Fresno small business owner told KMPH that her store, Lupita’s Boutique, was denied insurance coverage by its provider after filing four retail theft claims. The owner, who wished to remain anonymous, said: “It is up to you, and it saddens me what is happening, but we have no choice but to wake up every day, leave it in God’s hands and continue to give everything you have.”

Newsweek I reached out to the Oakland Metropolitan Chamber of Commerce and Newsom’s office via email for comment.