Acts of theft and vandalism against small businesses are on the increase, despite government pledges to get tough on crime.
Leading commercial insurers AXA announced today that it spent 17 per cent more settling crime-related insurance claims from businesses in the first three months of 2004 than it did in the final quarter of 2003.
Nearly seven of those 10 claims were as a result of theft, while malicious damage accounted for one in four. Although still a small percentage of overall crime, there was also an alarming rise in the number of arson claims.
The problem was particularly acute in the Midlands and North West, where crime was responsible for around a quarter of all business claims.
David Frost, director general of the British Chambers of Commerce, expressed his concern at the findings, when he said: “Crime heaps significant costs on firms across all sections of the economy. However, it is not just the cost per se that is damaging British companies. Crime can be extremely demoralising for both employees and business owners, who are simply distracted from the simple task of running their businesses.”
The latest figures show that the government’s decision to introduce teams of ‘regional advisors’ to combat crime on a local level has had little or no impact.
The news will also offer little optimism for businesses hoping for a drop in insurance premiums, which have spiralled over the past two years. As reported on Startups.co.uk, some companies have seen premiums increase by as much 500 per cent and thousands of small businesses have admitted to breaking the law by not taking out certain compulsory policies.
However, AXA has advised that businesses can implement certain measures to limit the threat of crime and ensure premiums are kept as low as possible.
Neil Mercier, property insurance manager for AXA, said: “The threat of crime facing the business community is real and growing, but by taking a few simple steps businesses can dramatically reduce the chances of suffering from a criminal act.
“The government has established a fun to help small businesses, especially retailers, to improve security measures and many local authorities run similar schemes. However, when we speak to our business customers it is clear the overwhelming majority are not aware that these schemes exist.”
AXA offers a free crime prevention toolkit designed to help businesses protect themselves against criminal acivity. It can be downloaded free of charge from www.axa4business.co.uk
