Small firms face crime risk

Almost a quarter of small businesses have been the victim of business-crime in the past two years, according to new research.

The study of small business owners and sole traders by insurance company Direct Line For Business also revealed that the average insurance claim resulting from a business-crime was £2,500. Vehicle break-ins and thefts from the workplace were the most frequent crimes reported by small businesses, with more than one in 20 companies falling victim to each.

Many business owners, one in eight, reported that in addition to being targeted by criminals, their businesses were also coming under pressure from fraudulent non-payment of bills, making it a bigger threat than any single crime.

Around 360,000 crimes or one third of the total crimes against business resulted in the company having to make an insurance claim amounting on average to £2,500, making the bill to insurers approximately £833 million. This would be split across Trade Credit Insurers and Business Insurers, encompassing the likes of employers' liability insurance, commercial property and commercial vehicle insurance products.