Fire: Rise in Arson Linked to Recession

Karen Jones — Mon, 07 Sep 2009 10:24:26 +0000

The Association of British Insurers has reported that its members have stated a rise in the number of fires which are causing damage in excess of £500,000. There appears to be a link between the number of arson and fraudulent claims and the current economic situation. Residential claims have risen by 17 per cent over the last year and claims on commercial properties have risen by 15 per cent to £865 million according to the Association.
Nick Starling from the ABI also claims that other factors may be to blame including companies trying to save cash by not replacing ageing electrical equipment. In the last recession a similar upward trend occured and the government set up the Arson Prevention Bureau in response.

Those companies who are trying to save money by cutting corners and not installing properly serviced equipment, or are letting fire prevention measures fall by the wayside, are taking a risk with both lives and and their business.

Why is it that when budgets are squeezed the threat of a major disruptive event suddenly becomes less in people’s minds? Is it that due to budget accountability, it is easier to make a purchase on something that is instantly beneficial rather than something that is considered insurance for something that may or may not happen?

In times of recession I believe that companies should be doing everything possible to maintain buisness as usual through any disruptive event, whether it be fire or flu pandemic. When you consider how many businesses never recover from a disaster becasue they cannot continue to service their customers, business continuity should be top priority.

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Fire: Rise in Arson Linked to Recession