Edition 7: Tips to Protect Small Businesses From Theft
How can small businesses protect themselves from theft?
There are strategies that small businesses can apply to not only minimise the risk of theft, but also ensure it doesn’t become a major disaster.
As a general rule, you should minimise the amount of cash or stock held on your premises, especially when unattended. Theft can be more prevalent when businesses are closed for holidays, so bank or secure your cash before you leave.
If your business is closing for an extended period, try to visit regularly to collect mail, check for signs of disturbance and maintain a presence. If you are going away, ask an employee or friend to do this for you.
Test security alarms regularly and check that all windows and doors are secured when closing up. Let your security company know your trading hours so they can be alert for any disturbances. Make sure your business insurance is up to date and keep an inventory of contents and stock records to confirm ownership. This will help when calculating claims payments.
What business insurance is available?
A range of insurance products is available to protect businesses from defined events including theft. Burglary insurance generally covers theft of stock, equipment and other business contents within your building. Some policies provide additional cover for theft of money and others cover loss of money or goods as a result of fraud or dishonesty committed by employees.
It’s important to speak to the insurer to find out exactly what is covered.
Small businesses should consider business interruption insurance. This covers loss of revenue if your business is unable to trade for a period of time as a result of an insured event like a break-in. It can help you pay your suppliers, staff, rent and so on while your business is out of action.
Every business faces its own unique risks. Business owners should work with insurers to purchase the right covers for their specific needs. Underinsurance remains a major issue for Australian businesses with many not realising their cover isn’t adequate until they have to make a claim.
Businesses need to review their insurance regularly and let their insurer know about any changes such as new equipment, vehicles or premises, making sure insurance covers the replacement costs of your assets, rather than just their value.
Business insurance needn’t cost the earth?
The price of an insurance policy reflects the type and extent of cover purchased. Insurers take a number of factors into account when assessing risks, such as the geographic location, building materials, replacement value of contents, turnover and profit of the business. Insurers may also consider what systems are in place to protect the business such as security alarms and deadlocks.
Business insurance costs may be viewed as an essential overhead, like power bills, suppliers or rent. Business owners can manage costs by paying premiums monthly or adjusting excess levels.
What to do if your business is broken into?
Safety should always be a business owner’s primary concern. The relevant authorities like the police should be notified as a priority.
If you have a business insurance policy, call your insurer as soon as possible following an event to lodge a claim. You will usually only need to provide your contact details and a description of the claim including the date, address and details of the loss. Your insurer will then advise you of the next steps.
Important Information:
GIO Business Insurance is issued by GIO General Ltd. ABN 22 002 861 583.
The information in this article does not take into account your financial situation, needs or objectives. Therefore, you should consider whether the information is appropriate for you, and read the applicable policy documents before deciding whether to acquire or hold any insurance products.