Derby may have finished bottom of last season’s soccer Premier League, and is not much better in the Championship this season, but the city tops one table – insurer AXA’s, for business crime.
Statistics collected by AXA Insurance for its Business Crime Index show a 10 per cent increase in the number of crimes committed against British businesses in the first half of this year, and an 18 per cent increase in the cost of business crimes in the same period.
These significant increases run counter to the 9 per cent reduction in high street and general crime announced by the Home Office earlier this year.
As a SME insurer, AXA believes this 18 per cent increase is a robust indication of the rapidly rising cost of business crime across the country.
The average crime claim settlement amount for January to June 2008 is £4,575, an increase of 7.5 per cent over the average cost for the same period last year.
Doug Barnett, AXA’s Head of Customer Risk Management said: “The increase in business crime is likely to get worse as the economic downturn continues, particularly where prices for certain goods are increasing. This is especially true of some building materials".
“If high street crime is falling, as recent government statistics suggest, we believe the police should now increase the emphasis on tackling crimes against UK businesses.
“Business crime should not be seen as ‘victimless’ just because insurance is in place to pick up the cost. Many business owners regularly worry about the fear of being robbed for their stock or having vital equipment stolen which could put them out of business for a period of time and therefore affect not only their own livelihoods, but the lives of all their employees.”
Key stats
The most common crime committed against businesses is forcible theft – criminals breaking and entering locked offices, shops, factories and warehouses. This has risen by almost 15 per cent this year, with the total cost of this crime increasing by 5.4 per cent to an average of £3,315 per claim.
Malicious damage is the second most common crime against business – frequently involving bricks through windows as well as damage inside business and retail premises. Whilst the number of these crimes has remained more or less constant between the two years, the total cost of this type of needless crime has increased by more than 55 per cent. A typical act of vandalism against a shop, office or other type of business premise now costs an average of £2,144.
Non-forcible theft is one of the types of business crime which carries the highest human cost. This includes robberies and other forms of theft where business owners can be held-up, usually whilst at work, for cash, stock and other high-value goods such as office computers and laptops. The AXA Business Crime Index shows that this type of crime is also on the increase this year – up a third in terms of number of claims settled, and up by more than half in terms of the total costs of this type of business crime. The average claim settlement is now £2,952.
Other business crimes on the increase include forcible and violent entry – up by more than 9 per cent, with a 90 per cent increase in the cost of this crime – as well as arson, where the number of cases is up by nearly 19 per cent. Average claim settlements for these types of business crime are now £6,187 (forcible and violent entry) and £39,155 (arson).
Largely because of its size, Birmingham accounts for the largest number of all types of business crime, including malicious damage and forcible theft, closely followed by Northampton. Surprisingly, Redhill accounts for the third highest number of business crimes followed by Guildford and Rochester.
Business hotspots
Business crime is generally broadly spread across the country, with the highest incidence by numbers of crimes in the larger conurbations. AXA data for London has always been sub-divided into eight separate postcode areas to better demonstrate the relative crime risks faced by businesses located in the capital.
Croydon and Northampton have seen by far the largest rises in business crime based on the number of claims settled by AXA in 2008 versus the number settled in the same period in 2007. The rate of business crime in both areas has more than doubled.
UK business crime by city
In terms of major cities, Derby had the highest proportion of business crime (23.9 per cent), followed by Nottingham at 23.1 per cent and Birmingham at 22.9 per cent. London had the lowest proportion of crime related claims in the first half of this year (14.3 per cent), just ahead of Glasgow (16.5 per cent).
In terms of actual increases in crime claims settled Leeds experienced the largest jump, with the number of claims some 55 per cent higher than the same period last year. Glasgow experienced the biggest drop – the number of business crime claims reduced by almost 9 per cent this year compared to the same period in 2007.
Tips from insurer:
AXA offers the following advice for businesses to help improve security planning to limit the risk of being a target for business crime:
Doors are the first port of call for any criminal wanting to gain access to your premises. Don’t make it easy for them. Make sure your doors have been strengthened with steel supports and locks.
Windows are also a point from which many break-ins start. Opening sections of windows should be screwed or bolted shut permanently unless they must be able to open, in which case, these sections must be fitted with key operated locks. Windows could also be protected with steel bars.
An intruder alarm system could also be installed if the premises are vulnerable or isolated, have suffered previous entries or attempted entries, or contain goods attractive to thieves.
CCTV can be utilised as part of an integrated security system to help reduce theft and to discourage malicious damage or vandalism.
Arson can wreck any business, so ensure extinguishers, hose-reels, alarms, detectors and sprinkler systems are maintained in full working order and protected against damage by vandals.
For more information visit –
