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:

Ransomware predictions
Issue 1 2020 , Security Services & Risk Management
As we enter a new decade, Simon Jelley, VP of product management at Veritas, explores how ransomware is likely to continue evolving in the year ahead.

The HR environment in 2020
Issue 1 2020, iFacts , Security Services & Risk Management
As 2020 grabs hold of every one of us with great intent, we need to know what to be aware of when employing people or appointing vendors for our business.

The instruments for investigation
Issue 1 2020, Technews Publishing , Security Services & Risk Management
Regardless of the reason for investigation, the investigation is only as good as the investigators.

Nothing holds Eudricht back
Issue 1 2020, Sensor Security Systems , Security Services & Risk Management
In this personality profile, Eudricht Kotze talks of his journey overcoming adversity in the security industry.

Leaders in risk and security: You have to know it to manage it
Issue 1 2020, Technews Publishing , Security Services & Risk Management
Hi-Tech Security Solutions profiles Nash Lutchman, Senior Vice President and Head of Protection Services at Sibanye-Stillwater.

Drilling deeper into essential building management systems
Issue 1 2020 , Security Services & Risk Management
As the demand for the automation of security and other systems in buildings and large construction sites around the world grows, we are seeing an increase in the demand for building management systems.

From physical security to cybersecurity
Access & Identity Management Handbook 2020, Genetec , Cyber Security, Security Services & Risk Management
Genetec discusses the security-of-security concept as a means to protect cameras, door controllers and other physical security devices and systems against cybercriminal activity.

Biometrics in identity
Access & Identity Management Handbook 2020 , Access Control & Identity Management, Security Services & Risk Management
With multiple identity providers offering to manage digital identities for the general public, the root identity – the single sovereign trusted identity upon which all others are based – must start with government.

Success lies in planning
November 2019, Vox Telecom , Security Services & Risk Management
A safe and smart city will only be successful if it is planned properly, if there is buy-in from all the stakeholders and if it is managed efficiently.

Matching governance to context
November 2019, ContinuitySA , Security Services & Risk Management
When building resilience and planning for business continuity, take proportionality to heart, advises Michael Davies, CEO of ContinuitySA.