Over 1 million small businesses targeted by criminals in the past two years

• 350,000 businesses make claims of £883 million to cover costs

Almost one in four small businesses (24%) have been the victim of business-crime in the past two years, according to new research from Direct Line For Business. The study of small business owners and sole traders, of which there are more than four and a half million in the UK, 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 twenty (7%) companies falling victim to each.

Many business owners reported that in addition to being targeted by criminals, their businesses were also coming under pressure from fraudulent non-payment of bills. One in eight (13%) of companies interviewed reported this in the survey, 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 employer’s liability insurance, commercial property and commercial vehicle insurance products.

Jazz Gakhal, head of Direct Line for Business, commneted: "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 £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."

Most frequent business-related crimes for small business owners and sole trades

Source: Direct Line for Business (June 2012)

The research by Direct Line for Business looked at small businesses employing less than five people with an average annual turnover of around £124,000.

ENDS

Notes to editors

1. ICM interviewed a representative sample of 200 tradespeople across the UK online on behalf of Direct line for Business between 18.5.12 and 21.5.12

For further information please contact:

Citigate Dewe Rogerson
Jamie Brownlee/Tom Wilson
Tel: 020 7282 2858/2842

Direct Line for Business

Launched in 2007 Direct Line for Business provides a range of insurance products for the small business sector direct by phone or on-line.

Direct Line for Business general insurance policies are underwritten by U K Insurance Limited, Registered office: The Wharf, Neville Street, Leeds LS1 4AZ. Registered in England and Wales no 1179980. U K Insurance Limited are authorised and regulated by the Financial Services Authority.

Direct Line for Business and UK Insurance limited are both part of Direct Line Insurance Group plc, which is wholly owned by the Royal Bank of Scotland Group.

Customers can find out more about Direct Line for Business products or get a quote by calling 0845 301 4827 or visiting