One in four small businesses victims of crime

Almost one in four small businesses have been victims of crime in the past two years with an average claim of GB pound 2,500, a new study by Direct Line for Business has revealed.

The research also reveals that fraudulent non-payment of bills is the single biggest threat to businesses with 13% of companies reporting themselves as victims of this crime.

More than one in twenty of businesses were victims of both vehicle break ins and thefts from the workplace, putting an emphasis on the importance of company security.

There are around four and a half million small business owners in the UK according to Direct Line, and the average cost of a claim equates to GB pound 833 million in small business crimes a year.

The research was carried out in May by ICM, who interviewed a sample of 200 tradespeople in businesses employing less than five people with an average annual turnover of GB pound 124,000.

Jazz Gakhal, head of Direct Line for Business said: “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 GB pound 2,500, and an unexpected bill of this size could put huge pressure on many small business owners. Businesses should explore the variety of insurance options available to ensure they have appropriate cover for all sectors of operations.”

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