MMA Insurance is warning of the new threat to the plastics sector following recent increases in metal theft in the UK. Rising prices of metals such as copper and lead, coupled with the economic downturn, have led to a 70% increase in metal theft in some areas of the UK. The cost to UK businesses is now estimated at £770m per year in the UK with a black market for metal strengthening.
The British Metals Recycling Association (BMRA) estimate over 15,000 tonnes of metal is stolen in the UK each year, and high demand is causing the thieves to widen their nets. In a new twist, insurer MMA revealed this week that they are beginning to see a trend for wider claims relating to metal theft. Particularly, beyond the obvious targets (church roofs, manhole covers, batteries and businesses where metal is widely known as being used such as jewellers, tool manufacturers, precision engineers), thieves are now also a threat to the plastics industry, where they are targeting the brass tooling and dies which are needed to produce plastic products.
Ironically, while the thieves are motivated by what they view as high values for the scrap metal, for the insured, it is not the raw material replacement costs of items such as brass and dies that is the issue. In fact it is the replacement tooling costs and interruption to businesses that can result in six figure loses.
Paul Hodgson, Director of Commercial Underwriting at MMA insurance commented: “It is worrying to see this sort of theft on the rise in these industries. At MMA we are seeing average claims to the sector of around £100,000.”
“As a direct result of high world metal prices we believe that insurers will need to move with the times in terms of raising the assessment of theft risk in a number different industrial sectors, as well as ensuring that the properties that they ensure are adequately protected against theft. Good quality risk management advice is also key, and we have summarised our own advice to businesses on this below.”
– Review your current inventory and machinery equipment – identify what may be attractive to metal thieves.
– Consider where you store your equipment – place all items in a secure, locked area and monitor access and stock control.
– Review your existing physical security and ensure you have adequate electronic security in place for maximum security.
– Visitor control – make sure you know who is coming into and out of your premises.
– Backup your blueprints – make sure the blueprints for the tooling are readily available in case of a theft.
Paul Hodgson continues: “I would advise businesses to talk to their local community and police and find out if there has been any theft of metal in their areas. Lastly, make sure you have adequate insurance to cover you and your business. Brokers are able to advise the most suitable cover for the requirements of businesses.”
MMA has produced a short guide for businesses which is available to brokers for distribution to their commercial clients. This can be obtained by emailing info@mma-insurance.com.
Source : MMA
