July 2006

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‘VAN-DALISM’ COSTS UK BUSINESS £620 MILLION A YEAR

Petty criminals and vehicle vandals are costing UK businesses £620 million a year, according to figures released today by small business insurer MORE TH>N1. The firm revealed that up to 13 per cent of all business vehicle claims are caused by crime such as theft and malicious damage, with the average claim costing around £3,000.

According to MORE TH>N Business, over half a million small business owners with a company van are affected by ‘van-dalism’ every year, which equates to almost half (41 per cent) of all small business vans on the road.

The impact on the nation’s small businesses doesn’t just stop at damage to the vehicle, however. Owners also lose valuable business when vans are off the road and in repair, sole traders are unlikely to be able to work at all and micro business owners with small fleets will find that productivity is severely affected.

‘Van-dalism’ makes up nearly a quarter of all UK crimes2, despite being punishable by immediate arrest, an on-the-spot fine or in some cases, an Anti-social behaviour order (ASBO). The crime costs the UK’s purse over £2 billion every year in clean-up and other associated costs3.

Mark Christer, director of MORE TH>N Business, said: “Not only is this type of crime an added stress, but often theft of a business vehicle means that owners of small businesses have to invest in new tools to replace those that have been stolen. With the average cost of a tool box coming in at around £4,000, the cost is likely to have a significant impact on short-term cash flow4.

“There are further repercussions; many tradesmen generate new business via word-of-mouth or recommendation. With productivity decreased or halted, deadlines cannot be met and subsequent jobs may be postponed. It may even result in firms having to turn down work. This doesn’t bode well in terms of future cash flow but more importantly it may damage a company’s good reputation.”

MORE TH>N warns tradesmen in the North-East of England to be extra vigilant. 12 per cent of its vehicle insurance claims are caused by theft and malicious damage in this region compared to just 7 per cent in Scotland.

Mark Christer continued: “Our data reveals that small business vehicle crime costs the UK economy over £620 million a year, but this is just the tip of the iceberg as a significant proportion of crimes go unreported. In fact, according to the Federation of Small Businesses, crime against small businesses is reported in less than half of cases.”

Kirsty Farrington, a plasterer from South East London works for construction firm Alpine, and drives one of the company’s white Mercedes Benz Vitos. Kirsty said: “In less than a year, my vehicle has been vandalised on six separate occasions. I’ve been luckier than some of my colleagues, many of whom have had their van and tools stolen. However, on each occasion, I still had to spend several hours trying to get the graffiti off, hours that should have been spent on the job.”

Since 40 per cent of UK tradesmen now have their own websites and are using the internet as an additional marketing tool5, MORE TH>N has developed an online vans insurance product with comprehensive cover. The convenience of an online product means that tradesmen can take care of their insurance needs out of office hours, allowing them to get on with their day job. The product includes a free emergency service; a 24 hour helpline including emergency recovery following an accident and a replacement vehicle for 48 hours following an immobilising accident or theft.

Mark Christer concluded: “If your commercial vehicle is the driving force behind your business then it’s important work doesn’t grind to a halt just because your van is off the road. Our cover will keep the wheels of commerce moving.”

MORE TH>N has a dedicated team of customer managers on hand to answer questions and assess the insurance requirements of a small business, plus an in-house claims unit and specialist small business survey team.

For more information on MORE TH>N’s van policy, please call 0800 072 0077 or log onto www.morethanbusiness.com.

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