February 2009 SME Crime Soars

Cost of crime to small businesses soars

Small businesses in the UK are estimated to be losing an average of £13,500 each as a result of criminal activity, whilst, according to a survey carried out by the Federation of Small Businesses (FSB). Worryingly, the survey highlighted that this figure has risen by 7% to 64% over the past two years.

The FSB survey, 'Putting the economy back on track: Crimes against business', covered 8,700 members and identified that vandalism was the most frequent crime experienced by UK businesses, followed by vehicle damage, threatening behaviour, graffiti, shoplifting and burglary.

The survey also found that it was hotels and restaurants that experienced the highest level of crime, along with those companies in motor vehicle sales and repair sectors.

This information comes on top of the figures showing that the incidence of credit card crime has also significantly increased this year.

The British Crime Survey found that the cost of credit and debit card fraud soared to a record high of £535m last year. The report also raised serious concerns that the much-heralded introduction of chip and pin technology hasn't solved security issues but had meant that criminals had quickly adopted new methods of fraud.

With all these increases in criminal activity it's even more essential that companies have the most effective insurance cover in place. Brokers are encouraged to make their clients aware of the increased threats to their business, conduct a thorough review and assessment of all their business activities, and to ensure that they are adequately protected.