Member Article

1 in 4 small businesses hit by crime

A quarter of all small firms have been a victim of business crime over the past two years, costing insurers up to £833 million.

According to Direct Line for Business, the average claim for business crime was £2,500 for a range of issues, including vehicle break ins, workplace thefts and fraudulent non payment of bills.

Fraud was found have affected 13% of all companies questioned, making it the biggest threat to business.

Jazz Gakhal, head of Direct Line for Business commented: “It’s alarming to see that as much as a quarter of small businesses have recently been affected by crime, though unfortunately this is always likely to increase in an economic downturn.

“The research demonstrates the importance of sufficient protection of the business as claims typically average £2,500, and an unexpected bill of this size could put huge pressure on many small business owners.”

One third of all crimes against business resulted in firms having to make an insurance claim, the total of which costs insurers a total of £833 million. This is plit across Trade Credit Insurers and Business Insurers, encompassing the likes of employer’s liability insurance, commercial property and commercial vehicle insurance products.

This was posted in Bdaily's Members' News section by Ruth Mitchell .