Melbourne CBD and Casey named most dangerous places to shop as insurance companies pull back on theft coverage

Small business owners have been left to fend for themselves amid a cost of living crisis and a sharp increase in crime as insurance companies pull back on theft coverage.

Small business owners have been left defenceless against rising crime rates as multimillion dollar insurance companies refuse to cover them for theft.

Where a hit to the hip pocket used to be the biggest danger to shoppers, shopping centres have increasingly become crime hotspots in Victoria.

But business owners say they feel abandoned by both police and insurers who have increased premiums and made it more difficult to be covered for theft.

Shah Kazemi, owner of A1 Phones repair shop in Dandenong Hub, said his store and neighbouring shops were broken into “every week”.

“The same people are doing it and the police are doing nothing,” he said.

“They just ask for the CCTV, arrest the people and then we see them again in the street.”

A1 Phones at Dandenong Plaza has lost more than $70,000 worth of stock to theft. Picture: Supplied.

Mr Kazemi said he lost an estimated $70,000 in stock over a 12 month period to theft.

“It’s really frustrating to be honest, the police know it’s the same guys over and over again and insurance companies aren’t covering shops for thefts anymore,” he said.

“We’re small businesses, not millionaires – we’re just trying to make our bread and butter for our families.”

Combined with stock loss, Mr Kazemi has also lost out on wages and repair costs.

“It’s sometimes two days without being open,” he said.

“It’s not just me it’s everyone facing this issue — (centre management) has only paid for the roller doors, just $6000.”

Mr Kazemi’s experience has been reflected in new data, which revealed an increase in criminal activity at shopping centres and retail environments in almost every council area across Victoria.

Delhi Nights restaurant on Ferris Rd in Cobblebank ram raided, owner fears deliberate attack. Picture: Supplied.

The most dangerous place to shop in Victoria in 2024 was Melbourne CBD, which saw an increase in reported crimes from 866 in 2023 to 1255 in 2024,

The sharp increase showed the area experienced more than three criminal incidents a day in 2024, according to Crime Statistics Agency of Victoria findings.

National Insurance Brokers Association Victorian director Stella Pruscino said recent trends showed premiums were rising for smaller retail traders due to increased theft and malicious damage claims.

“As criminals employ more sophisticated methods, businesses are implementing a mix of technological, procedural, and community-focused measures to protect their assets, staff, and customers,” she said.

“Premiums for theft will likely increase for those retailers that do not implement risk management strategies.”

Shopkeepers have been urged to improve security systems to keep insurance costs low. Picture: Mark Wilson

National Insurance Brokers Association chief executive Richard Klipin recommended retailers seek advice from a professional broker and shop around for polices to reduce costs.

“Insurance brokers provide personalised advice and may help secure better deals,” he said.

“A broker can ensure insurance coverage is fit for purpose and covers risk areas such as shoplifting.

Mr Klipin also advised for shopkeepers to look at ways to manage risk in their store by improving security systems such as upgrading CCTV, keyless entry, installing bollards, improving lighting and increasing staff training.

Shepparton’s Bicaro’s Restaurante owner Gina Cozzi said soft bail conditions were contributing to the high retail crime figures.

“Why wouldn’t you break in and steal something and enjoy it for five minutes before you get arrested, if you’re getting released straight away,” she said.

Ms Cozzi — whose business was broken into four times within one month — said reports of insurance companies denying small businesses coverage were “deflating”.

“We don’t ask to get broken into — what we’ve paid in insurance is probably 100 times greater than what we’ve ever had to apply for,” she said.

“They’re probably making billions a year and we’re paying money every month to be covered — to find out businesses are being denied protection is deflating.”

A skip-truck was used in an attempt to ram-raid Burnside Hub Shopping Centre in Burnside in December last year.

A spokeswoman from Victoria Police said despite business owners’ experience, crime at shopping centres had decreased compared to pre-pandemic numbers.

“Overall crime at major shopping complexes and department stores has decreased since pre-pandemic by eight per cent,” she said.

“This includes a 10 per cent decrease in property and deception offences which account for nearly 80 per cent of all crime committed at shopping centres.”

The spokeswoman said lost or stolen credit cards being used to purchase goods and shop theft were the two most common property and deception offences.

“Crimes against the person, such as robberies and assaults, make up a small percentage of crime committed at shopping centres,” she said.

“Only one in ten crimes relating to offences such as these.”

Criminal psychologist Tim Watson-Munro said he was “sceptical” of statistics.

“It all depends on who’s collecting them and how they’re being read,” he said.

For Dr Watson-Munro, it was no surprise crime had gone up at shopping centres because they were “easy targets”.

“Looking at methods like swarming, or intimidation with weapons — in shopping centres it’s easy to get away and there’s a certain level of anonymity,” he said.

“People are doing it because they can — there is a lot of disaffection between the haves and the have-nots, and the schism is only growing.”

Dr Watson-Munro described the rise in ramraiding, firebombing and general crime occurring at retail and shopping centres as a type of “structured anarchy”.

“(Shop theft) is sticking it to people — they’re saying ‘we don’t respect the laws, we don’t have a future’ and it’s facilitated by social media and mobile phones.”

He also said it was no surprise that insurers were refusing to cover certain crimes or damages at businesses or raising premiums for small store owners.

“Insurance companies are generally looking for reasons not to insure people at the moment, they’ll find any excuse to void a policy” he said.

“I know of insurance companies not covering stores for tobacco, or they have a ceiling of $10,000 and business owners are waiting up to 10 months for a payout.

“It’s recognised by the insurance industry that it’s a growing crime and one that is hard to prevent.”

While Melbourne’s CBD had the highest rate of crime in shopping centres in the state, other areas in Melbourne and Victoria ranked in with huge reported incidents in 2024.

The City of Greater Geelong saw 402 more criminal incidents at shopping centres in the last 12 months, totalling 1161 over the period.

The City of Casey also saw a large bump in shopping centre crime, totalling 978 incidents in 2024, up from 949 in 2023, demonstrating the rise in shopping centres and retail strips that have also been targeted in ram-raid and firebombing attacks.

The Herald Sun has reported on such incidents across Melbourne, including at Burnside Hub, Mickleham Shopping Centre, Forest Hill Chase Shopping Centre and Prahran, all in the final month of 2024.