4 Retail Crime Myths That Could Cost Small Businesses, & The Facts That Bust Them

Running a small business is tough enough without dealing with crime. Whether you’re on the high street, in a retail park, or running a small chain, every day you’re juggling stock, staff, and customers, but there’s a dangerous tendency to treat crime prevention as “something for the big players.”

The truth? Small businesses are not just vulnerable, they’re often seen as easier targets.

Below, we bust four of the most common myths that could be leaving your business exposed, with evidence from trusted sources, and a clear look at what your insurance may or may not do for you.

Myth 1: “Shoplifting is inevitable and just a cost of doing business.”

Picture this: you’re already having a slow week, and then you discover £300 worth of stock has walked out the door. It’s tempting to shrug and write it off, after all, everyone loses a bit to theft, right?

“Shoplifting is not a victimless crime and policing recognises the impact it can have on retailers and communities.”

“Crime against a business can take many forms: from shoplifting or non-paying diners to staff theft and burglary from premises. Help safeguard your business with our advice.”

“The police recorded 516,971 shop theft offences for year ending December 2024, a year-on-year increase of 20%.”

Why it matters: Writing shop theft off as “normal” not only hits your bottom line, it can damage staff morale and community trust. Repeat offenders often escalate, and in some cases, theft is linked to organised crime.

What to do:

• Keep clear sightlines across your shop floor.
• Use staff rotation so no one is stuck in one area for too long.
• Keep high-value stock locked or in view of the till.
• Report all incidents, patterns help police target prolific offenders.

Insurance lens: Make sure your policy covers theft or attempted theft and check the terms for business interruption caused by crime.

Myth 2: “Employee theft is rare, not worth worrying about.”

For most owners, staff are the backbone of the business. But in retail, insider theft can be one of the most damaging crimes, often going undetected for months.

“Some staff members abuse the trust of their employer and resort to theft – a fairly common crime within the retail world.”

Why it matters: Employee theft can be harder to spot than shoplifting, it might be small amounts taken over time, altered invoices, or cash register fraud. The result can be thousands lost before you even notice.

What to do:

Use dual sign-off for refunds or voids.

Reconcile till totals daily.

Conduct occasional spot checks of high-risk stock.

Limit access to sensitive systems and keys.

Insurance lens: Ask your broker whether your policy includes cover for employee dishonesty. It’s often excluded from standard theft cover.

Myth 3: “If someone gets hurt during a crime on my premises, it isn’t my problem.”

Imagine a customer injured during a smash-and-grab, or an employee hurt breaking up a fight outside. Many owners think the liability lies solely with the offender.

Why it matters: You could still face claims if it’s alleged you didn’t take reasonable steps to keep people safe even in a criminal incident.

What to do:

• Keep entrances well-lit and unobstructed.
• Train staff on safe ways to respond to threatening behaviour.
• Maintain incident records and CCTV footage.

Insurance lens: Public liability and employer’s liability should be reviewed to ensure coverage extends to injuries caused during criminal incidents.

Myth 4: “Cybercrime isn’t a concern for high-street businesses.”

Even if you never take online orders, your payment systems, email accounts, and customer databases can be targets.

“Criminals know there is a lot of money to be made by duping people into handing over cash or security details and it can be difficult to know how to protect yourself, especially as criminals’ tactics are becoming more sophisticated and varied.”

“Phishing attacks remain the most prevalent and disruptive form of cyber breach or attack and the qualitative insights emphasised the time-consuming nature of addressing phishing incidents…”

Why it matters: Cyber attacks can shut down tills, lock you out of booking systems, and even expose customer data leading to fines and reputational damage.

What to do:

• Use strong, unique passwords and enable multi-factor authentication.
• Back up data regularly to an offline source.
• Train staff to spot phishing emails.

Insurance lens: Cyber cover is rarely included in standard business policies, consider a standalone policy or add-on.

Final thoughts

Business crime isn’t just “part of the job” it’s preventable, and your insurance may not cover as much as you think.

By busting these myths, reviewing your cover, and putting practical steps in place, you can protect your business, your team, and your customers.

Resources for Small Business Owners

Official reporting & advice

• Report a business crime – Police.uk
• Action Fraud – Report fraud and cyber crime
• Crimestoppers – Business crime advice

Government & industry guidance

• Home Office – Retail crime factsheet
• Cyber Security Breaches Survey – gov.uk

Prevention checklists

• Police.uk – Theft by staff prevention guides
• Police.uk – Protect your property against vandalism
• NCSC – Small business cyber security guide

This content is for general information only and is not intended to provide advice or a personal recommendation. Insurance cover is subject to the terms, conditions, and exclusions of the policy. Always consider your individual circumstances and seek professional advice before arranging insurance. External websites are not under our control and we are not responsible for their content.