Survey reveals alarming rise in arson incidents

The index shows a three per cent increase in the number of overall crime-related insurance claims by businesses compared to the first three months of the year. Malicious damage claims, such as graffiti and smashed windows, increased by 11 per cent.

But instances of theft, which accounts for the majority of crime-related insurance claims by businesses, fell by one per cent between the first and second quarter. Despite this, theft remains one of the most common reasons for insurance claims made by businesses, accounting for over 10 per cent of all insurance claims.

The report says that "while arson accounts for a relatively low number of crime related insurance claims – 4.2 per cent – its impact on business can be devastating".

"The average claim settlement amount for a case of arson was around £40,000 in the second quarter of 2006 and it accounted for around £4 in every £10 insurers paid out in crime-related insurance claims during this period," AXA said. "Across all crimes, the average insurance settlement is now £4,024."

According to the Arson Prevention Bureau, arson is the single most common cause of fire in business and that in the vast majority of cases arson attacks are down to opportunistic vandalism. The Bureau says that 45 per cent of all serious fires are a result of arson, and up to 80 per cent of businesses never fully recover from a serious fire.

The Bureau also reports that each week, there are 2,213 arson attacks, arson kills two people, 53 people are injured and 360 businesses and public buildings are damaged or destroyed by arson.

Douglas Barnett, risk control strategy manager at AXA Insurance, said: "Businesses really do have to take the threat of fires seriously and they should protect against all types of arson. For example, they should be aware that arson can be as simple as a lit cigarette being deliberately disposed of in rubbish holding facilities or outside storage where they can smoulder and set light to the business and attached dwellings.

"In addition, businesses should be particularly vigilant around this time of year – around the month of November fireworks are readily available to buy."