Small Business Insights: Preventing Theft and Vandalism

Theft and vandalism pose significant risks to small businesses across all industries. These incidents can lead to financial losses, property damage and operational disruptions. This article explores the risks of theft and vandalism, prevention strategies, response protocols and essential insurance considerations.

Understanding the Risks

Theft and vandalism manifest in various ways. For example, theft may involve shoplifting or employee dishonesty, while vandalism can include smash-and-grab incidents, graffiti or property damage like broken windows. The risk of these crimes is significant; security agency OBN Security reported that $10 billion is lost annually to theft, shoplifting, robbery and burglary. Repairing vandalism can cost thousands of dollars and disrupt business operations, further compounding financial losses and potentially harming a business’s reputation. In fact, the annual $10 billion in losses contributes to a staggering 30% of all business failures, according to OBN Security.

Prevention Strategies

To minimize the likelihood of theft occurring, employers should adopt robust prevention measures, such as the following:

• Establish anti-theft policies and effectively communicate them.
• Secure valuable items by storing them near registers or in locked cases.
• Thoroughly vet employees and have monitoring procedures in place.
• Train employees to identify suspicious behaviour and respond appropriately.
• Ensure adequate staffing levels during high-risk times and engage customers proactively.
• Use technology like security cameras, motion detection lighting and electronic identification tags for high-value items.
• Implement access controls, especially in areas with high-value goods.
• Use signage that publicizes the consequences of stealing.

Strategies to prevent vandalism include:

• Install physical deterrents, including fences, durable materials like impact-resistant glass, proper lighting, and strong locks and doors.
• Strengthen community ties by organizing a business watch program and collaborating with law enforcement.

Responding to Incidents

In the immediate aftermath of a theft or vandalism incident, employers should notify the proper authorities, document the damage and file an insurance claim. They should then clean up promptly to resume operations and minimize disruptions, analyze what went wrong and update security measures accordingly.

Insurance Considerations

Having adequate insurance coverage is vital to reducing the financial impact of theft and vandalism. Policies such as commercial property insurance and business interruption insurance can cover clean-up costs, stolen items, property damage and operational downtime. It’s important to work with a licensed professional to assess a business’s needs and secure appropriate coverage.

For more information on risk management or to find out how to reduce your insurance costs call CMB at 780.424.2727 or click here to get a quote.