There are many things that can happen to a business if there is insufficient security in place, but for this article we are going to concentrate on break-ins and vandalism; these most often taking place at night when staff are not present – although even if they are, they are not likely to have the training or ability to stop the event.
Intruders and Vandalism
Break-ins and the inevitable loss of stock are one thing, while sheer vandalism can be just as bad, valuable vehicles for example potentially sustaining critical damage.
The list of costs is a lot longer than you may think.
The obvious one is that there will be damage to the property as the thieves or vandals have to gain access. This could include broken windows, doors, gates or perimeter fencing.
Once they are in, the mess they create is another thing, broken furniture, office equipment, internal doors etc, also needing fixing or replacement. Stock could also be made worthless.
If the reason for the break-in was to steal something, then that will need to be replaced, this potentially costing many thousands of pounds.
On the other hand, sheer vandalism can cost a business thousands of pounds too, as a local coaching firm found out to their horror not so long ago when their vehicles were attacked and the windows broken.
Thus the costs of ‘cleaning up’ after an event like this are not be discounted, they could cost a lot of money..
Not All Costs Are Physical
These ‘physical’ costs are one thing, but there are others that have to be taken into account as well.
Such events also cause a degree of mental stress, not only on the owner of the business, but also the staff, especially if any were present during the attack. This could result in staff taking sick leave, increased levels of anxiety and the need for counselling, which itself can be expensive.
Another thing that is often forgotten about is the loss of trading days, as it can take some time to clear the mess up, as well as the time taken to replenish the stolen items. And if a fire is started in the event, well you can just imagine the time it could take to get things right again, many days of operation being lost.
Another thing to bear in mind is that the insurer may not pay you as much as you would expect, their adjusters coming up with reasons that the claim should be reduced. Also, depending on the wording of your policy, some things (like lost trading days) may not be covered at all.
The Dreaded Insurance Renewal
But there is another ‘hidden’ cost, one that will only become apparent when the business insurance renewal comes along.
Insurance premiums, as we know, always go up if a claim is made, and business insurance is no exception and the increases can be eye-watering.
Whilst there is no fixed increase, premiums being adjusted on a case-by-case basis, there will be a noticeable rise at renewal.
Typical impact
For a UK business policy (shops, workshops, offices), a single theft or vandalism claim often results in:
- Around 10% -30% increase for a smaller claim with limited loss.
- Around 30% – 60% (or more) if the claim was large, repeated, or involved poor security.
- In some cases, no standard increase but a higher excess (deductible) instead.
- Occasionally, an insurer may refuse renewal if they see the risk as too high.
It should be noted that insurers don’t just take the claim into account, as they are more interested in the risk in the future. Is the break in just a first of many, will the vandals return? This is what concerns them the most.
So they:-
- Take the value of the claim (e.g. £2,000 vs £20,000+) into account.
- Look at the type of incident (forced entry, opportunistic theft, vandalism only).
- Check on the crime rates in your area to see if they have increased
- Consider the security measures in place (locks, shutters, alarms, CCTV), and more importantly, whether they are going to be improved.
- Check your claims history (one-off vs repeated incidents) and the time since the last claim.
An example of the effect at renewal
A small retail unit in a market town suffers a £5,000 break‑in loss:
- Previous premium: £800/year
- After claim: £1,000–£1,200 is fairly typical unless security is upgraded
If there’s a second incident within a couple of years, that same policy might:
- Jump to £1,500+
- Or come with strict conditions (alarm installation, higher excess, restricted cover)
How The Risk Can Be Reduced
As you can see the costs of having a break in or vandalism can be high, so what can be done about it, what can reduce the risk of it happening in the first place?
Insurers respond well if you actively reduce risk:
- Install or upgrade alarms (monitored systems carry more weight).
- Fit shutters or reinforced locks.
- Add CCTV with visible signage.
- Improve lighting and physical security
- Can demonstrate that the business is protected by a security company
If you can show these changes at renewal, some insurers will soften the increase or keep it closer to the lower end.
The Not So Secret, Secret Weapon You Have At Your Disposal..
There is no doubt that the criminal fraternity, or your common or garden vandal, would rather not be caught in the act, and will therefore seek a target that is well less ‘defended’.
Most of the list above is to do with actual ‘physical’ security, something that is there all the time, but of all of them, the last one is perhaps the most effective.
The last thing an intruder wants to see when they are about their ‘work’ is a burly security guard (and perhaps their dog). So, it stands to reason that if they notice that a property is protected, that they may seek another target.
Of course, a sign by itself will not be enough, you can bet that the criminal in question will have ‘cased the joint’ and if they notice that highly visible security van turning up (at times that they cannot know or guess at) that they are likely to move on.
Crime Displacement
The process is called ‘Crime Displacement’ and it is a proven thing.
Types Of Mobile Patrols And How They Can Effect Premiums
There are two basic types of patrols, external and full building checks.
External patrols focus on the outside of the site, while full building checks cover both the outside and the inside. External patrols usually check gates, fences, doors, windows, lighting, car parks, and signs of intrusion; full building checks add internal rooms, corridors, fire doors, alarms, and any evidence of unauthorised entry inside the premises.
External patrols
These are mainly perimeter checks. A guard will look for broken fencing, open doors or windows, suspicious vehicles, tampering, vandalism, and whether lighting or CCTV looks in order.
Full building checks
These are more comprehensive. They include the external perimeter, then also an internal walk-through to check rooms, internal doors, windows, fire exits, hazards, signs of forced entry, and anything left unsecured inside the building.
Practical difference
External patrols are quicker and cheaper because they stay outside and are usually aimed at deterrence and spotting obvious problems. Full building checks take longer, involve more access, and are better when you need proper lock-up verification or a wider safety inspection.
A simple way to think about it is: external patrols protect the boundary, while full building checks protect the whole premises.
How do internal check services impact insurance liability premiums?
Internal check services can help lower liability premiums if they reduce the chance of claims, incidents, or compliance failures, because insurers price cover based on risk. Businesses that can show stronger controls and better risk management are often viewed more favourably at renewal.
How insurers look at it
Insurers usually care less about the service itself and more about what it proves: good procedures, fewer incidents, and better documentation. If internal checks catch problems early, they may reduce losses and make the business look like it is a lower risk.
Where savings can happen
The main benefits are usually:
- Fewer liability claims, which supports better renewal pricing.
- Stronger evidence of compliance and governance.
- Lower chance of avoidable incidents being blamed on poor supervision or weak controls.
What it does not guarantee
Internal checks do not automatically guarantee a lower premium. Premiums still depend on the type of business, claims history, insurer appetite, and the exact cover being bought.
The Cost Benefits Of Using A Security Firm
The cost of a break in or an attack by vandals, as well as the associated increase in insurance renewal is hard to compute, it varying so much from incident to incident.
The ‘mental’ effects are also difficult to price, after all just how much is not being able to sleep well at night worth?
Whatever the figure is, in most instances it is going to add up to a big number when you take everything into account (loss trading days etc etc), so it makes sense to look at just how cheap and cost effective employing the services of a company like Wye Security is.
Example of Costs
A typical business can be protected by having two visits a day, the cost here being in the region of £14 to £22 per visit. This equates to a monthly cost of between £840 and £1320.
When you consider the potential overall costs of a break in or vandal attack, it really starts to make sense…
If you would like to discuss just how we can help protect your business, please do contact us.