Metal Theft - Risk Management Standards - QBE

Risk Management StandardsMetal theftCasualtyRisk ManagementIn recent years the price of metal has risen consistently, reachingall-time highs during the course of 2012. Whilst good news fortraders in the metal industry, this has led to an increase in criminalactivity associated with metals, particularly metal theft. For theConstruction industry, metal theft is a significant issue as it islucrative and facilitated by a largely unregulated industry withconstruction sites often being poorly secured and so open andaccessible to thieves.The knock-on effect of such criminal activity on UK industryis alarming. Figures suggest that the overall cost to the UKeconomy has been over £770 million* a year, affecting not justthe construction sector, rail and telephone operators, but alsoend-user consumers. Insurers are paying out more than £1 milliona week to victims of metal theft according to the Association ofBritish Insurers.Best practice for site security to preventmetal theftLiaise with a Crime Prevention Officer. Sharing informationbetween police, construction and scrap metal industries iskey. Communicate through a central website or telephonehotline.Establish a main site office at the main entrance for recordingall visitors and restricting entry points to a minimum.Consider an electronic control system and/or 3 proofs ofID (including photo ID) from all visitors, workers, deliverydrivers and contractors upon arrival and departure.Install substantial perimeter fencing and gates that are wellmaintained and monitored. Small inner site areas can alsobe fenced off as a further deterrent. Check for weak spots:trees and bushes growing against the fence or wheelie binsnear fences.Consider anti-climb paint and security signage attached tofencing to warn of security measures.All buildings and storage facilities should be locked at nightwith double cylinder dead bolts and padlocks with padlockshields. Monitored security alarms add a further layerof security for highly valuable items. Overseas shippingcontainers provide a very robust storage option.Lighting can deter intruders and aid surveillance, whetherfully lit or detector activated.Provide security guards for sites under constant threat.Digital CCTV and video-over-IP protocols use camerasand detectors linked to Remote Video Response Centres,linked to the police for event driven monitoring.Effective theft prevention is based on Contractorsprioritising and enforcing security. Clear communication ontheft prevention policies to all workers is essential.Reinforce the anti theft policy. Promote accountability andprovide training for supervisors and team leaders. Personalphoto ID badges should be carried by all workers.Nominate key holders for designated storage facilities. Keysshould be stamped ‘Do Not Duplicate'.Write security procedures into sub contractors’ agreements.Extended working hours pose a risk to site security asdeadlines loom. Site-specific security plans should be aspecific person’s responsibility to devise and implement.Financial incentives may be a useful tool to encourageworkers' cooperation.Thieves cannot steal what is not there. Reduce metalstocks held on site by minimising the time between deliveryto site and their usage.Conceal metal supplies and mark them using SmartWater,Selecta DNA paints or similar products.*Source: Figure from the Association of Chief Police Officers, as quoted in the House of Commons LibraryStandard Note SN/HA/6150 Metal Theft, 11 July 2012 by Sally Lipscombe and Oliver Bennett.

Future action and further guidanceThe Legal Aid, Sentencing and Punishment of Offenders (LASPO)Act has recently been amended to outlaw cash transactions atscrap metal yards. Persons selling scrap are now required toshow photographic identification. The Scrap Metal Dealers Act1964 has also been amended to increase fines to a maximumof £5,000 and increase powers of entry available to the police.Further guidance can be gained from the British Safety IndustryAssociation www.bsia.co.uk and a metal theft report can bedownloaded from www.metaltheftscotland.org.ukFurther informationFor more information please visit: www.QBEeurope.com/rm oremail us on RM@uk.qbe.comQBE European OperationsPlantation Place30 Fenchurch StreetLondonEC3M 3BDtel +44 (0)20 7105 4000fax +44 (0)20 7105 4019enquiries@uk.qbe.comwww.QBEeurope.comDisclaimerThis publication has been produced by QBE Insurance (Europe) Ltd (“QIEL”). QIEL is a company member of the QBEInsurance Group. Readership of this publication does not create an insurer-client, or other business or legal relationship.This publication provides information about the law to help you to understand and manage risk within your organisation. For fulldetails of the disclaimer surrounding this publication please visit http://www.qbeeurope.com/legal/publication-disclaimer.asp4188/QBERMStandards/MetalTheft/Jan2013QBE European Operations is a trading name of QBE Insurance (Europe) Limited and QBE Underwriting Limited. QBE Insurance (Europe) Limited and QBEUnderwriting Limited are authorised and regulated by the Financial Services Authority. QBE Management Services (UK) Limited and QBE Underwriting Services (UK)Limited are both Appointed Representatives of QBE Insurance (Europe) Limited and QBE Underwriting Limited.