Will insurance protect me?

June 2011 Security Services & Risk Management, Retail (Industry)

Insurance will return some or all of the money lost, but it will not support your future business.

“I would rather buy a cheaper cash acceptor under a fully insured service contract and save the additional R1000 a month of a more robust safe,” said a cost conscious franchise owner. “It does not matter if they blow it away. I am protected because the service provider will pay.”

On two separate occasions in as many weeks, I have heard this statement being made to the franchisor’s safety and security expert, whose responsibility includes providing professional guidance to his franchise owners and operators based on his expert knowledge and considerable experience. Like them, I shudder to think of the consequences of this ill-informed philosophy.

The very first principle of security is to deter the criminal from committing the crime in the first place. This becomes even more relevant when considering the protection of retail cash where it is common knowledge that around 40 violent attacks are executed every day by armed criminal gangs against South African business premises, in pursuit of cash.

If the cash is left in the till drawers, stored in an uncategorised box or low level safe or as is so often the case, in the bottom drawer of the manager’s desk, it is an easy and attractive target for robbery. And given that how we protect the cash is common knowledge to everyone in the store and that the vast majority of attacks occur with the help of insider information, be assured that there is very little to stop or discourage an attack.

Insurance will not stop the attack. Insurance will not prevent the trauma that our loyal staff and customers will experience. Insurance will not reduce the potential for serious injury and even death as a consequence and insurance will not protect our business from the sudden and sustained drop-off in trade arising from the subconscious aversion we all have to being around what we perceive to be a highly dangerous place.

An effective retail cash management solution is one that has a proven record in all three of the basic security principles – it makes the target so difficult to reach that the criminal is deterred in the first place; It deflects the criminal to rather try his luck at a softer and easier target; finally and if all else fails, it defends the cash and contains collateral damage as far as is practically possible.

Insurance is a non negotiable part of the complete solution, but it is really there to ensure that financial damage to both the customer and the service provider can be contained.

The extra R1000 may pale into insignificance when compared to the safety and security it can actually buy.

Richard Phillips is a cash logistics and security specialist and the managing director of Cash Connect Management Solutions, a leading solutions provider to the retail and wholesale market.




Share this article:
Share via emailShare via LinkedInPrint this page



Further reading:

Putting secondary storage to work
September 2019 , IT infrastructure, Security Services & Risk Management
By 2022, more than 80% of enterprise data will be stored in scale-out storage systems in enterprise and cloud data centres, up from 40% in 2018.

Read more...
ContinuitySA offers Complete Continuity Practitioner in October
September 2019, ContinuitySA , Training & Education, Security Services & Risk Management
ContinuitySA is offering its popular five-day Complete Continuity Practitioner Programme on 21-25 October 2019 at its offices in Midrand.

Read more...
Security workforce compliance tool
September 2019 , Security Services & Risk Management
To maintain service excellence across a security workforce is impossible without the help of information systems and technology.

Read more...
Call back the past
September 2019, SCAN RF Projects , Security Services & Risk Management
Two-way radios are still very relevant in the security world and have gone through significant advances over the past few years to enable them to keep up with the expectations of people in today?s connected world.

Read more...
Proficient operational security management
September 2019 , Security Services & Risk Management
The quest to establish an organised and integrated security operations programme based on a Plan-Do-Check-Act (PDCA) cycle for continuous improvement is paramount for a successful security operation.

Read more...
Increase security efficiency, decrease costs
September 2019 , Security Services & Risk Management, Integrated Solutions
Trackforce offers customisable mobile and web applications to increase security operational efficiency and lower costs.

Read more...
Accurate guard tracking and management
September 2019, Secutel Technologies , Security Services & Risk Management, Products
There are many challenges when it comes to effectively managing and tracking a guarding workforce in real time.

Read more...
X-rays in 3D
September 2019, XPro Security Solutions , Editor's Choice, Security Services & Risk Management
Hi-Tech Security Solutions asked Greg Dixon, director of XPro, for some insights into X-ray scanning and its pros and cons in today?s volatile world.

Read more...
Smart Inspection Unit developed by Roteck
September 2019 , Editor's Choice, Security Services & Risk Management
Roteck has announced a portable personnel and bag scanning unit that can easily be transported, set up and used in almost any location.

Read more...
Mobile guards on patrol
September 2019, Dahua Technology South Africa , CCTV, Surveillance & Remote Monitoring, Security Services & Risk Management
Dahua Technology developed mobile ?Video Guards? along with a complete solution for a security service company in Germany.

Read more...