Petty criminals and vehicle vandals are costing UK businesses a staggering £620 million a year, according to one small business insurer.

Research by More Than revealed that up to 13 per cent of business vehicle claims are caused by crime such as theft and malicious damage, with the average claim costing £3,000.

Over half a million small business owners with a company van are affected by 'van-dalism' every year.

The insurer says owners lose valuable business when vans are off the road in repair and sole traders are unlikely to be able to work at all.

"Often theft of a business vehicle means that owners of small businesses have to invest in new tools to replace those that have been stolen," said Mark Christer, director of More Than Business.

"With the average cost of a tool box coming in at around £4,000, the cost is likely to have a significant impact on short-term cash flow."

Mr Christer goes on to explain how small business vehicle vandalism can have further repercussions on the company.

"With productivity decreased or halted, deadlines cannot be met and subsequent jobs may be postponed. It may even result in firms having to turn down work. This doesn't bode well in terms of future cash flow but more importantly it may damage a company's good reputation."