Retail Insurance Increasingly Important as Cost of Retail Crime Soars by 31%

Store owners need to make sure they have solid retail insurance policies in place.  This has never been more important as the challenges facing in the retail industry increase year-on-year.

Retail Crime

New figures show that the costs of retail crime have soared by 31% this year.  This means that retail crime now costs the industry up to £1.4b each year.  These figures have been provided by the British Retail Consortium’s latest Retail Crime Survey.

The survey reveals that even though retail crime did drop slightly in 2011 the costs to the industry have actually risen. This is because the average cost of each individual theft incident has risen by 83% across the board. This means although there are fewer instances of retail crime, each incident is now of an average higher value.

One of the reasons why this shift could be happening is that retail stores are now more adept at preventing opportunistic crimes. These are smaller crimes such as shop lifting in-store (violent and forcible entry can be covered) which typically only cost the store around £50 to £200 per incident. However there has been an increase in serious and violent crimes that retail businesses can do little to prevent such as armed burglaries.

These incidences have increased and have been shown to cost on average £2,000 per incident to retailers.

Retail Insurance

With the costs of retail crime increasing it has never been more important for you to protect your business with retail insurance.  Retailers now have to spend a lot more money not just on crime prevention but also on protecting themselves financially with retail shop insurance.

You need to make sure that your full retail shop insurance policy can offer if required:

  • Cover for your shop contents and stock against theft involving forcible entry/exit from your business premises.
  • Cover for your shop content, stock and capital against theft by employees.
  • Cover against loss of business caused by serious incidences at your premises.
  • The standard cover for storm damage, fire, flooding and vandalism.

Find out more about retail insurance from The Insurance Octopus today by contacting our specialists.