Number of Business Insurance Claims Dropping, but Claim Value Rising
There’s been good news for UK businesses recently as insurance provider AXA announced that the number of insurance claims being made by businesses has dropped significantly. Just 5 years ago, there was a 1 in 10 chance that a company would make a claim on their business insurance due to crime. Today, however, there is just a 1 in 20 chance that a business will be targeted. However, while this is positive news, there are now concerns that these new figures will lead to many businesses – particularly those who are looking to cut ‘unnecessary’ costs – becoming more complacent in terms of their business insurance, potentially leaving themselves vulnerable, and struggling to come back from an incident.
It’s important for businesses to realise that even though the chance of their company being the target of crime is lessening, the average amount that a company claims for on their business insurance is steadily rising. This is because while the number of attacks on businesses is, fortunately, diminishing, the intensity of the attacks is increasing. Within the last few years alone, the average amount that a company claims for on their business insurance has risen by 33 percent, from £4,456 to £5,919.
- Vandalism – average claim value in 2012 was £1838. Today it’s £2675.
- Arson – average claim value in 2012 was £40,560. Today, it’s £82,802.
- Crime – average claim value in 2012 was £3840. Today it remains steady.
Despite the number of business insurance claims dropping, the rising cost of the average claim means that there’s never been a better time to ensure your business is fully protected. This not only includes cover against crime, vandalism, and arson, but also against cyber attacks, accidents and injury suffered by employees or the public on your premises, and against product damage if you deal with physical goods. Business insurance really is the best way to give you complete peace of mind, knowing that your company will have the financial support and assistance it needs should the worst happen.
But what about small businesses and startups who are always looking for ways to cut costs, leaving more working capital for growth and development opportunities? Well, believe it or not, business insurance doesn’t have to be costly. Simply complete the quick online form here at compareyourbusinesscosts to see a wide range of affordable quotes for comprehensive cover.