Cost of individual cases of business crime up 6%

The average cost of a crime related business insurance claim during the first three months of 2006 was £4,179, according to the latest findings of the AXA Business Crime Index. This is an increase of 6% on the last quarter of 2005 when the corresponding figure was £3,942.

However, between January and March 2006, the total number of crime related business insurance claims fell by 24% when compared to the last three months of 2005, and the total value of these claims fell by 23%. One of the key reasons for this decline is that during the Christmas period, crime against businesses can increase dramatically because many premises are closed for the festive season.

However, more encouragingly, when compared to the first three months of 2005, the total number of crime related business insurance claims between January and March 2006 fell by 6%.

Commenting on the results, Neil Mercer, Property Insurance Manager at AXA said: “Although our figures show a decline in the number and total cost of business crime, this is still a serious problem that is costing small and medium sized businesses well over £700 million a year.

“Many businesses need to take greater action to reduce the chances of becoming a victim of crime. Our website axa4business.co.uk contains a range of guides for SMEs including on how to protect themselves from criminal activity.”

Arson is the most financially crippling crime small businesses can face, and for the first three months of 2006 it accounted for 38% of the total value of settled business crime related insurance claims. This is despite the fact that it only makes up 3.77% of the total number of business crime related claims. Theft is the most common claim and accounts for the largest share of business crime related insurance settlements.

Birmingham tops the city business crime table, with 27.87% of claims settled between January and March being crime related. Birmingham is followed by Cardiff (26.82%) and Bradford (24.18%). Liverpool (12.83%) had the lowest percentage of crime related business insurance claims settled over the period.