The Growing Risk of Metal Theft

Over the last three years, the rise in metal prices has led to thieves stealing lead from church roofs, concern about the risk of precious metal theft and this year cable theft has made the press.

Nightmare commuters’ journeys are not unusual – but in addition to the usual ‘reasons’ of leaves on the line, too warm or too cold – cable theft has become a common cause for delay. This August, Transport for London reported that nearly £300,000 worth of metal had been stolen from the system in the last year and is being sold for scrap. This includes £143,000 of material taken from bus stops over the last year. In addition £291,000 was stolen from the Tube, DLR, Overground and Tramlink over the last three years.

Thieves are going to even greater lengths to harvest these metals, risking life as well as long prison sentences. Non-ferrous metals such as lead and copper are desirable. They are not only costly to replace, but the theft can interrupt the running of your business, causing even further costs. Metals are often used in roof coverings and theft of these can lead to water damage in the building. In addition, attractive amounts of cables and piping are often stored on construction sites.  Their loss can be very costly and delays build schedules, leading to increased staff costs on projects.

Most commercial property damage insurance policies will include theft cover, but cover may be restricted to theft following forcible and violent entry to or exit from the building.  This may mean that theft of lead, piping etc. from the outside of the building may not be covered under the policy. Some insurers may consider removing these restrictions, though payment of an additional premium may be required. Alternatively, some policies will specifically include an extension to cover theft of metals. If you believe your premises are at risk, you should check on the terms and conditions of your policy wordings.

In addition to ensuring you have adequate insurance cover in place, it is important to be aware of the increased risks and the security measures a business may require to help protect it. You may want to consider improving physical security to the perimeter of your premises:

  • Install security cameras and security lighting to protect the perimeter of the site of your building
  • Reduce ease of access to roofs – keep ladders locked and hidden away and scaffolding secure, as well as removing items that may provide a boost for a burglar such as waste bins, tall trees and water butts
  • Consider putting anti-climb paint on drain pipes and don’t forget the deterrent warning signs!
  • Secure all equipment paying specific attention to metal based goods
  • Ensure construction materials are delivered to your site on time and not early!

For guidance on the most suitable insurance cover for your business, please contact your local insurance broker.

Last reviewed 11/11/2011

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