How can you protect yourself from business theft?

Unfortunately, the risk of theft is a part of doing business and, as such, proprietors need to find ways to keep themselves protected.

The Global Retail Theft Barometer (GRTB) conducted a study on Australia's 2012 retail performance, focussing on shrinkage, which is defined as the difference between the financial revenue a business should have received and what it actually reported. It turns out that 45 per cent of 2012 shrinkage was due to theft.

While some forms of business insurance can help companies recover after a theft transpires, there are a number of proactive measures that will enable owners to discourage wrongdoers and protect their locations.

Educate your staff

Before anything else, setting up awareness programmes can have a profound impact on a company's ability to discourage shoplifting and other forms of theft. This includes educating employees and customers about retail theft prevention strategies.

According to the Australian Institute of Criminology (AIC), seven out of nine surveyed businesses said conducting such campaigns reduced inventory shortages significantly. Two of those companies managed to decrease shoplifting rates on a monumental level.

Place electronic article surveillance gates at exits

Electronic article surveillance (EAS) tags have been shown to decrease inventory discrepancies by 54.5 per cent, according to the AIC. These tags are part of wider systems that also include gates. When a person tries to walk out of a store with an item possessing an EAS tag, the exit's alarm system will go off, signalling store employees. The video below describes this process in more detail:

Reinforce the perimeter

In 2011, the Australian government released a set of physical security guidelines designed to protect agencies from a variety of threats, including theft. Many of these recommendations can be applied to protect the exterior portions of a storefront, office or other place of business.

For example, access control systems can be set so that an alarm goes off every time someone enters a building after hours. In addition, metal grating can be pulled down and locked behind doors and windows, which will make it difficult for even experienced burglars to enter a premises.

For the aftermath

If the worst should occur, and your business sustains losses due to property damage and stolen inventory, business theft coverage may provide assistance. Depending on the type of goods lost, a business may be able to access funds to replace the contents, though situations vary.

In some cases, you may be able to use theft coverage to pay for new locks and replace fixtures or fittings. Speak with an agent to find out whether your company would qualify for these benefits.