Break-ins and thefts can happen at any small business, no matter how tight the security.

In the retail sector alone, more than half of small businesses said they had been victims of shoplifting in the prior year, according to a 2022 survey by the U.S. Chamber of Commerce. And break-ins and thefts occur across all sectors.

So, it is important for small business owners to prepare in advance and have a plan for dealing with a break-in or theft, to minimize damage.

Roxie Lubanovic, co-founder of Frostbeard Studio in Minneapolis, which makes candles, had her studio broken into in 2016 over a holiday weekend. Thieves stole equipment and supplies, then damaged locks and doors getting in and out. Insurance covered the losses, but it was still difficult recovering.

"The hardest part was feeling violated in a space we had put so much work into," she said.

There are several steps small business owners should take after a theft or break-in occurs.

First, don't wait to notify the police and file a police report. You can take inventory of stolen or damaged items after the police have finished their investigation.

Once you've inventoried and documented the damage, file an insurance claim. You'll need photos or receipts for items stolen. Call your bank and notify them of what has occurred.

Have a transparent conversation with your employees about what happened. Analyze what went wrong and enhance security where needed. Once you have an updated business security plan, inform your employees about how the break-in has been addressed.

Lubanovic reviewed her security plan and upgraded her security system and installed cameras, new locks and an alarm.

"I also asked neighbors to keep an eye out, and had employees stagger their schedules for a while so someone was always present during business hours," she said. "Thankfully, we haven't had another incident since."

She advised small businesses to include building a strong relationship with their local community and neighboring businesses as part of their security plan, saying it "can be invaluable for support and vigilance."

Rich Main, owner of Vista Glass in Tucson, Arizona, had his warehouse broken into six months ago, losing nearly $10,000 in equipment and supplies. He had to stop operations for two days waiting for replacements to arrive. Insurance only partly covered the damage.

"For other small businesses facing a similar situation, my advice would be to act quickly to secure your premises and reassure your customers," he said. "It's also crucial to review and update your insurance policy regularly to ensure adequate coverage."

One tip: Check state regulations to see if aid is available. In New York, for example, the 2025 state budget will include a $5 million tax credit to help small businesses enhance their security measures, such as installing cameras. It also will include a $3,000 tax credit for small businesses that meet a spending threshold on retail theft prevention measures.