Recently Lloyd Asset Protection were asked to contribute an article to the Willis Property Investors Division’s June 2011 Technical Advisory Bulletin. This article was to examine the evidence of how electronic security such as remotely monitored CCTV solutions can drastically reduce the risk of theft and vandalism in unoccupied buildings and void units.

By comparing properties that, prior to the installation of remotely monitored CCTV, had been the subject of theft and vandalism, Lloyd Asset Protection Ltd. were able to analyse the effectiveness of the reduced risk that remotely monitored CCTV provided

The findings are evidence to the reduced risk and were included in the article below.

You can visit the Willis Property Investors website area by clicking here

The actual PDF advisory can be downloaded by clicking here

Prevention Is Key

To protect against vandalism and theft, security is more important than ever in a vacant property, where the eyes and ears of employees and tenants can no longer be relied upon. The approach to loss prevention can vary considerably. As one risk manager summarised ‘a property risk manager will view an asset from the boundary inwards, concentrating first of all on preventing an incident occurring. Insurers often view the risk associated with an asset from the inside outwards, concentrating primarily on reducing the impact an incident will have’.

The question of whether CCTV or manned security is more effective is difficult to pinpoint. One of our clients, represented by an experienced risk manager, has led them to conclude that ‘remotely monitored CCTV is a better deterrent to potential thieves and more cost-effective than on-site security. The CCTV Recording and Transmission system should have a UPS or battery back up and include audio speakers. Certainly CCTV has many advantages. The presence of such equipment can enhance the attractiveness of the site to prospective tenants’.

As CCTV is monitoring all areas at all times, it can be viewed as a better solution than manned guarding which is very dependent on patrols and can complicate the health and safety risk on site. As the guards cannot actually tackle intruders, they are only able to report on an incident if it is spotted. A remote CCTV solution can go one step further by addressing the intruders through a PA system before needing to report an incident to the local Police, stopping most incidents at an early stage. Additionally the installation of CCTV removes any possibility of bribery or intimidation that can arise with manned security.

The issue then is one of cost comparison and the best way to gain an understanding is to consider a medium-long term analysis.

For example, on a vacant unit of 24,000sqm, it is estimated that 10 cameras, numerous detectors and an audible address would be required, as well as the installation costs and ongoing maintenance monitoring expenses. Annually, we estimate these costs at £30,000 per year based over five years.

By comparison, the annual costs for two on-site security guards per year are around £93,000. In this case, the potential saving by using remote CCTV amounts to £315,000 over the five years*.

Case Study

After lead was repeatedly stolen costing insurers £20,000 each time to replace, remote CCTV was installed on the roof areas of a property at a cost of £15,000. Within one month the system was tested when the thieves returned. The system was alerted of intruders, and an audible address was sufficient to make them leave. They have never returned.

After manned guarding failed to stop the theft of cabling from a warehouse unit resulting in an insurance loss of £750,000, remote CCTV was installed at a cost of £80,000, replacing the annual £108,000 guard costs. When the thieves returned, the system was activated and the managing agent informed immediately. The thieves attempted to cut the power to the CCTV, but the back up allowed a remote download of the incident to enable Police to see the breaking and entry through the front gate. As a result the thieves were removed from the site, and although they made several further attempts to gain unlawful entry, were each time addressed through the audible address system and left.

Further information about Lloyd Asset Protection and the services they provide can be found by visiting the company website at http://www.lloydassetprotection.com. Tony Lloyd can also be contacted directly on +44 7711 123 321