UK business suffered losses in excess of £1.1bn as a result of fire, theft, business interruption and weather damage to their premises during 2003, revealed ABI statistics.
Grant Thornton's Insurance claims solution team, who analysed the data, said fire damage represented the most significant (60%) amount of commercial insurance claims, followed by theft at 17%, weather damage at 14%, and business interruption at 8%.
According to the figures, insurance claims for the fourth quarter of 2003 rose to £326m, up 10% on the £296m recorded in the third quarter of the year.
The greatest increase was seen in losses from fire damage, which grew 20% reaching a 12-year high of £226m.
Insurance claims for commercial theft showed a smaller increase of 6%, said Grant Thornton. Claims went up 6% from £46m in the third quarter to £49m in the fourth quarter.
However, claims for business interruption and weather related losses fell by almost 10% and 40% respectively during the final quarter.
“The cost of insurance has risen significantly for most businesses over the last two years and this has led to a temptation to self insure or reduce cover,” said Tom Heward, a director within Grant Thornton's Insurance claims solution team.
He continued: “These losses affected real businesses that thought it would never happen to them. The statistics show that in spite of several years of mild winters, loss and damage suffered by UK businesses is still at a significant level. Those companies who are tempted to cut back on their risk management budget do so at great risk to their business.
“With proactive risk management, thoughtful continuity planning and a sensible insurance programme, most finance directors should sleep easier.”
