Recent research highlighted that a massive 24% increase in theft-related insurance claims among SME's over the last three years. The Crime Survey for England and Wales revealed that there were over 3.5 million reported cases of theft between 2017 and 2018 which includes both physical burglary and cyber-attacks.
From this research some organisation theft trends have emerged that we think you need to be made aware of:
It has been documented that insurance claims for motor theft have increased by over 30 per cent in the course of one year! Newer cars with keyless entry systems have been targeted by thieves who have been able to use a relay device to intercept the signal from a vehicle's key fob and use it to gain entry in less than a minute without even leaving a scratch. Some high-end vehicles are even being targeted and stolen to order. Car recovery company TRACKER highlighted several models of Mercedes, BMW's and Range Rovers all with keyless entry systems that are among the most stolen vehicles in the UK. The MET police have recommended using an Electronic Key Security pouch to store your key in while out and about which will help prevent thieves from scanning the signal.
If you are in the manufacturing or construction industries this will be a significant risk for your business. It is estimated that the theft of metal costs the UK economy nearly £770 million each year. If your materials are stolen, there is not only the cost of replacing the stolen metal to think about, but also the time it will take to replace which could have a disruptive impact on your day-to-day business. As for tools, research suggested that over 50 per cent of builders in the UK we victims of tool theft in 2018. Our own claims team have seen numerous claims made to replace tools and some even have even had their locked vans broken in to and their tools stolen even though they were out of sight!
Over 30 per cent of businesses in the UK were subject to a cyber attack in the past twelve months. Cyber-crime is one that often doesn't leave any physical damage but the costs involved with responding to a cyber attack can be sizeable - and that's without even considering any fines for non-compliance of GDPR!
UK retail businesses suffered a combined £700 million loss from customer's stealing their products in 2018. This is a 30 per cent rise from the previous year's Crime Survey. Many insurance policies won't cover shoplifting due to the lack of force used to gain entry to the premises and rarely results in any physical damage being caused. It's therefore important that you implement strategies to deter shoplifters including the layout of your retail space and have a clear policy for your employees to follow if they suspect shoplifters.
We see hundreds of claims each month with a large amount as a result of theft. These statistics highlight the importance of purchasing a comprehensive programme of insurance that will give you the cover you require to help protect you from the impact theft could have on your business.
For more information, please send us a message or get in touch with your usual A&T contact.
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