In the UK, the need for good home security systems is clear. Businesses on the other hand, often neglect their security, leaving themselves wide open to loss. A report from the Office of National Statistics shows that, between April 2015 and March 2016, almost 207,000 burglaries were committed against businesses compared to only 193,773 against domestic premises.

The reasons for business failing to properly protect their premises are largely financial, especially in times of economic stress. As an intangible spend, based on a ‘possible risk’, investment in security measures is generally perceived as an ‘it can wait until tomorrow’ outlay. After all, what normal person actively enjoys buying alarms or a CCTV camera? But when an average commercial burglary costs a business an average of £5,898, then the sum lost outweighs the cost of security equipment, and that’s without even factoring in business disruption, possible reputational damage, and employee wellbeing.

Arguably, it’s even more important than securing your home contents. You need to run your business, and your business is your livelihood.

So what about insurance? A company with comprehensive business cover is clearly protected from a whole range of potential disasters. And not unreasonably, the insurer issuing the policy needs to know you are taking all practical steps to keep your business safe and sound.

However, while many businesses claim to be confident about what they are covered for in case of burglary, the reality for many is that they haven’t met the terms and conditions, exclusions and warranties applied in the small print.

Subsequently, a claim can often be met with a ‘computer says no’ response. To address this, the government passed The Insurance Act of 2015 which came into force in August last year, designed to make insurance clearer and fairer, including rules regarding when your insurer is allowed to reject a claim. In short, if you can prove to your insurer that you are fully compliant with their policy terms, eg, that you truly do have a fully working burglar alarm which is always set when you leave the building, then the insurer will be duty bound to pay out should there be a burglary. So far, so good, yet how it works in practice remains to be seen, but one thing is certain – businesses (and homeowners) have to prove to insurers they have done everything possible to prevent theft from happening in the first place.

Checking the Small Print

All insurers’ conditions differ, so you must go through your own insurance policy terms and conditions with a fine toothcomb. Check your insurance policy for any on-going conditions or requirements relating to security protection, and make sure you comply.

As a general guide, premiums may be reduced significantly if you can tick these boxes:

If you're in a shared office or premises, your equipment should be stored in a lockable, separate space or container only you can access.

Make sure that all external accessible windows and skylights are fitted with window locks, permanently screwed shut, or protected by one or all of:

• Fixed solid steel bars not more than 10 cm apart
• Fixed expanded metal, weld mesh or wrought ironwork grilles
• Proprietary collapsible locking gate grilles

Use only an alarm system that has been certified by an approved organisation. Check the documentation that came with your alarm to see if it has either National Approved Council for Security Systems (NACOSS) certification or the Security Systems and Alarms Inspection Board (SSAIB). Alarm systems must be regularly maintained and checked by approved NSI or SSAIB contractors.

If you use a remote alarm system, make sure the signal transmission is transmitted to an alarm-receiving centre operated by a company accredited and operating to EN ISO 9000.

Codes for the operation of alarms and details of such codes and all keys to the alarm system must be removed from the premises when left unattended. Lodge written details (which must be kept up to date) with the alarm company which is contracted to maintain the alarm and either the police or the alarm-receiving centre.

Separate keyholders are required and a keyholder must attend the premises within 20 minutes following an alert.

Remove keys outside of business hours, and keep cash or valuables in a safe or strongroom locked with keys that are removed from the premises.

So what’s the bottom line? Very basic security measures are unlikely to protect your property from intruders. Any additional security measures will reduce your premium, depending on your insurer. Ask your agent or broker for suggestions on how to obtain lower rates and premiums and check that you are complying with the existing security specified by them.

A security risk assessment and insurance compliance check can help you identify how you are protected, and where you might be failing to cover yourself if the worst happens. The alternative is to pay more than you need for your premiums and risk losses that won’t be recompensed.

SW Asset Protection provide security equipment, consultancy, risk assessments and insurance compliance for businesses across the UK.

Contact: 01743 233000 Website: swassetprotection.co.uk