” At Norwich Union we usually expect a grade 3 system to be installed in business premises but we have found that a number of businesses are agreeing to installers’ suggestions of cheaper grade 2 systems without seeking insurer advice. As it requires replacement of nearly all the alarm components to retrospectively move a grade 2 system to grade 3, failing to seek insurer advice can prove an expensive omission,” he said.
Norwich Union says that under the Euro Standards for alarm design and installation, failure to check with an insurer that the appropriate grade of alarm is being installed may lead to insurance cover being refused or made conditional upon potentially expensive additional work being done.
Installers have to undertake a security risk assessment to help determine the grade “but as part of this process (they) will usually advise customers to check whether any interested insurer agrees with the grade proposed.”
Underwood said: “The difficulty and expense of making alterations to systems installed to the new European Standards make it critical that businesses seek insurer input at an early stage.”
New research by AXA insurance says crime against British small and medium sized businesses (SMEs) cost GB pound 721 million last year – but the true cost was much higher as many offences will not be claimed for. Also many SMEs have inadequate cover or are not insured. Average claim payment in the last three months of 2005 was almost GB pound 4,000.
Arson is the most financially crippling crime most small businesses face. It accounts for less than five per cent of crime related claims but more than 40 per cent of the settlement amounts.
Derby tops the city crime table with 30.7 per cent of claims being crime related in the last quarter of last year. This was followed by: Bradford (30.5); Nottingham (28.91); Cardiff (26.97); Middlesbrough (25.00) and Liverpool (23.00 ). London had the lowest percentage of crime related business claims settled at 16.61 per cent.
