£1m worth of plant 'going missing' every week

Norwich Union said plant theft was a "serious problem" with industry not only suffering the immediate cost of such losses, but also subsequent business continuity problems because of long lead times involved in replacing stolen specialist machinery.

The insurer wants construction firms to adopt better security measures, and in return says they could "reap the rewards" through premium discounts and lower excesses.

Gary Thom, senior underwriter for engineering at Norwich Union, warned that plant and machinery was being stolen at an "incredible rate".

"Much of the problem of construction site theft stems from the ease with which items can be removed and subsequently disposed of," he told us.

"With less than 5% of stolen items ever recovered and low levels of prosecutions by the police, plant theft is regarded as a low risk opportunity for the criminals involved."

He added: "A large amount of specialist machinery is from overseas, with Germany, for example, a key manufacturer of cranes and Japan an important plant market. This means it can take weeks for new machinery to be ordered and shipped, often causing a serious business continuity problem for construction firms."

Theft prevention

Gary recommended that companies mark all equipment and machinery under the CESAR - Construction Equipment Security and Registration - scheme.

"The scheme has been driven primarily by the Metropolitan Police and concerns around security at the Olympic sites, given the vast amount of plant on site," he said.

"It includes various levels of markings for the equipment, from highly visible six-character triangular registration plates, down to multiple covert markings and hidden transponders."

Gary went on to say that physical security measures were also "vital" for theft prevention.

"Immobilisers for any driven item and mechanical devices such as boom locks, arm locks or leg locks on machinery can also be a good deterrent," he said. "Tracking devices can also be used, and although they do not prevent the item being stolen, it will certainly increase the chance of recovery.

"We also recommend that site security measures are adopted. Whilst walls or fences surrounding the site are a must, employing security guards or having monitored CCTV with the back up of a police response is also recommended. Where possible, valuable items should be stored within a building or a purpose built storage facility, and this should also have security measures in place."