Commercial Crime Protection

November 15, 2014

Commercial Crime Protection

Crime is an increasing threat to all organisations.  The recent PWC global economic crime survey identified the following trend.

  • 34% of companies had experienced economic crime in the last 12 months; a rise of 13%
  • 54% of those companies were large, categorised as 1,000 plus employees, but all companies large and small had experienced an increase in economic crime which suggests that all companies are being targeted.
  • asset misappropriation accounted for 72% of all frauds
  • the average size of a crime loss is 1.3% of annual turnover

The losses incurred are only half the story.  Damage to reputation, brand, and business relationships are not uncommon results of crime.

Prevention is, of course, better than cure and a robust system of controls is vital to minimising the risk.  However, should the worst happen, a comprehensive Crime Policy can provide essential balance sheet protection and will ‘wrap’ around a conventional insurance programme.

We’ve been busier than usual here at AE Insurance Brokers lately. As part of our ongoing commitment to staying current and effective, we recently underwent a brand refresh. While it looked like a cosmetic change - a new logo, a fresh colour palette and font - the process was actually a deep dive into who we are, how we serve our clients, and where the industry is heading.

And while we were looking in the mirror, something struck us: many businesses don’t look in theirs often enough.

When we talk to UK business owners one pattern emerges consistently. Companies grow, pivot, hire, launch new products, or expand into new territories. Yet their insurance policies often remain frozen in time, reflecting the version of the business that existed twelve months ago - or worse, five years ago.

Insurance is often treated as a compliance checkbox: a bill that needs paying, a certificate that needs sending. But if your business has changed, your risk profile has changed too, and when your policy doesn’t match your reality, you’re likely overpaying and potentially leaving dangerous gaps in your protection.

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