A different view on RoI: Return on Insurance
Nobody enjoys paying for insurance. Whether it’s for a car, a house, travel or health, insurance is seen by many as a cost with little return. In fact, the principle benefit of insurance would be regarded by most people as not having to use it at all! But insurance brings comfort and peace of mind, both of which are valuable commodities.
Investment in video surveillance can often be seen in a similar way, particularly by cost-sensitive or businesses with fewer resources. Given that a video surveillance solution is often put in place with a key objective being to prevent or deter criminal acts such as theft and vandalism, it can be difficult to put a value on what it may have helped to stop. But that’s certainly not to say that the value might not be highly significant. In fact, it might mean the difference between the survival of the business, or otherwise. In addition, video can be an important factor in defending against accident claims, and provide valuable evidence that can avoid a costly liability payment.
Prevention is better than cure
The relative impact of theft of equipment or stock to a small or medium-sized business can, of course, be far greater than that to a larger organization. If your one and only delivery vehicle is stolen, for instance, it’s going to have a more serious effect than one of thousands operated by a national logistics firm. And while a video surveillance solution will aid any investigation after an incident takes place, it can be the visible deterrent that delivers a great benefit, even if it is one difficult to quantify. And as businesses grow, the risks can also increase (as we’ve blogged about before).
In some industry sectors, measurement of the prevention of crime – whether from external or internal sources – is more achievable. Anyone operating in the retail sector, for instance, will see a quantifiable loss each year through ‘shrinkage’, a primary driver of which is shoplifting and employee theft. A video surveillance solution can show a significant reduction in shrinkage, thereby providing a financial return on the investment. Read more about the top considerations when specifying a video surveillance solution.