News Article Two

15th December 2008 bbc.co.uk

Arson is a growing threat to businesses and should be taken seriously, insurer Axa has warned.

Its research shows an 12% rise in claim settlements arising from arson in the past three months, with the average claim amounting to £40,000. This compares with an average insurance payout for all crimes of about £4,000.

"Arson is the most financially crippling crime small businesses can face," said Douglas Barnett, the firm's risk control strategy manager. Although arson accounts for a small share of crime-related claims, Axa warns its impact on firms can be devastating with research showing that 80% of firms never recover from a serious fire.

"Businesses really do have to take the threat of fires seriously and they should protect against all types of arson," Mr Barnett added. Total crime related insurance claims rose 3% in the second quarter of 2006, according to Axa's business crime survey, but claims stemming from malicious damage rose by 11%.

Source: www.bbc.co.uk