Average Cost of Business Crime now £5,000 a year

8 August 2005

• New NOP Survey for IoD
  
• One in Four Businesses a Victim of Crime
  
• 2/3rds UK businesses without full insurance

The average cost to business victims of crime now stands at £5,000 a year, a survey released today reveals. A quarter of UK executives reported their business had suffered a crime within the last twelve months. The NOP poll of 500 members of the Institute of Directors also revealed that only one third of businesses have fully comprehensive insurance to cover these crimes. 

Most victims had been forced to increase security, repair damage, pay higher insurance premiums and cope with disruption to trading, the survey found. 

Richard Wilson, Head of Business Policy at the IoD, said:

"Experience of crime is most prevalent among larger firms, particularly in the distribution and hotels sector.  The cost of crime is real and in some instances significant. Businesses pay the cost of crime in replacing stolen goods, enhancing security and repairing damaged property. Ultimately though, it is the public that bears the cost of business crime."

By far the biggest single crime against businesses is theft by non-employees which makes up two-thirds of all offences. Worryingly the survey also reveals high levels of fraud and Internet crime, with 30 per cent and 27 per cent respectively, of those reporting crime, having fallen victim.

The IoD also called on its members to check their insurance policies are sufficient to their requirements after the survey revealed a third of business crime victims are not covered by their existing policies. In fact only a third of businesses appear to have full comprehensive insurance coverage.

Richard Wilson, said:

"Crime against business is not a victimless crime. It causes real harm to employers, employees and potentially to customers too. Thriving communities and successful businesses depend on law, order and stability.

"The Government and the police are quite rightly giving considerable attention to fighting terrorism and international crime. However, the Government must also continue to support the police in their efforts to crack down on less high profile crime, including crime against businesses."