A recent QBE survey found that 59 per cent of micro-SME’s haven’t updated their insurance since first purchasing it, despite 42 per cent seeing revenue growth in the past three years. This gap in protection puts many businesses at risk of financial losses they may struggle, or even fail, to recover from.

Has your coverage adapted to your success?

Hiring new employees is a sign of business success, but it also introduces new risks. More staff means greater exposure to workplace injuries, liability claims, and employment-related disputes. And if your coverage hasn’t been updated to reflect a larger workforce, you might not be adequately insured.

Similarly, if you’ve invested in new machinery, tools, and IT infrastructure or moved into larger premises, your business assets may be worth significantly more than when you first took out insurance. If your coverage is based on outdated valuations, you could be underinsured in the event of damage or theft.

While winning contracts can be a game-changer for the bottom line, it can often come with stricter liability requirements. Many clients will require proof of sufficient coverage before signing off on supplier engagements. If your policy doesn’t meet these standards, you could miss out on business opportunities or even find yourself liable for damages beyond your current coverage limits.

Without updated cover, business owners can be caught off guard when a claim arises. This is where an insurance broker can provide value. Brokers are experts at spotting risks – often the kind business owners haven’t even considered. They can review your insurance needs, provide guidance on changes in the market, and make sure your coverage keeps pace with your success.

The financial risk of outdated insurance

The cost of being underinsured can be substantial enough to drive a SME to breaking point. In the survey, more than half of micro-SMEs report they would struggle to recover from financial setbacks over $10,000, while almost a quarter say they wouldn’t be able to absorb any financial loss at all. A single unexpected event such as property damage from a weather incident or a lawsuit, could put a small business in serious jeopardy.

Time for a coverage check
If it’s been years since you reviewed your insurance policy, now is the time to act and to ask yourself:

• Have I hired new employees?
• Have I upgraded or expanded my business premises?
• Have I purchased new equipment, such as laptops or tools?
• Have I diversified my product or service offerings?  
• Am I taking on larger contracts with new requirements?

If the answer is yes to any of these, it’s time to reassess your coverage. A conversation with your broker might be a helpful place to start.

Protect your business with flexible coverage

QBE’s business packages offer flexible solutions to help keep your insurance in step with your growth. By regularly reviewing and updating your policy with your broker, you can avoid unexpected gaps and protect your business from potential risks. Don’t wait until it’s too late. Visit us here.

Disclaimer: QBE Small Business Insurance and QBE Business Package Insurance are issued and underwritten by QBE Insurance (Australia) Limited (ABN 78 003 191 035, AFSL 239545). Any advice provided is general only and has been prepared without taking into account your objectives, financial situation or needs and may not be right for you. Please read the relevant Policy Wording to decide if the product is right for you.

QBE makes no warranty or guarantee about the validity, currency, accuracy, completeness, or adequacy of the content in this article that does not relate to QBE’s insurance products. Readers relying on this content do so at their own risk. It is the responsibility of the reader to evaluate the quality and accuracy of this content. Reference in this article (if any) to any specific product, process, or service, and links from this content to third-party websites (if any), do not constitute or imply an endorsement or recommendation by QBE and shall not be used for advertising or service/product endorsement purposes.

The post Is your business insurance keeping up with your growth? appeared first on Inside Small Business.

Business NSW’s latest quarterly Business Conditions Survey has revealed that 78 per cent of businesses in NSW have seen double-digit increases in their insurance premiums over the past year, with one in three businesses saw premiums rise by 30 per cent or more, which is well above the 2.5 per cent inflation rate for the year to January.

CEO Daniel Hunter stated in no uncertain terms that businesses are fed up with having the highest-taxed insurance premiums in mainland Australia.

“The NSW Government is collecting more than ever through the Emergency Services Levy (ESL) and stamp duty,” Hunter explained. “This leaves businesses to either foot the bill or simply go without insurance and hope for the best. Many others have been flat-out rejected by insurance companies.”

He added, “On top of this, the Federal Government is sending an ever-increasing proportion of GST revenue to WA because of a terrible deal approved by both sides of federal politics.”

The findings only add to the grim situation among NSW businesses concerning their insurance coverage. A December survey of Business NSW members found that 64 per cent were not fully insured against catastrophic events.

Hunter also noted that insurance premiums have been the top financial concern for businesses for nearly two years. “Many NSW businesses now find themselves either uninsurable or unable to afford the soaring cost of insurance. You can’t run a business when your premiums increase by 30 per cent or more in a year,” he commented.

In order to address the insurance crisis among businesses, Business NSW has been calling for urgent reform of the business insurance system.

“The state and federal governments need to step up and do something now,” Hunter said. “Businesses are struggling because of rising premiums, and it’s simply unsustainable.

“If we don’t get this under control, the entire economy will feel the impact,” he concluded.

The post Business NSW calls for action on ‘out of control’ insurance premiums appeared first on Inside Small Business.

Overall, the top-growing small business sectors in 2024 are Aged and Disability Care, Cleaning and Gardening, Post-Construction Services, Allied Health, and Business Consultants.

“This is a useful indicator of industry growth trends based on internal data,” said Sharon Kenny, Head of Marketing at BizCover. “Simply put, more new business insurance requests correlates to more new small businesses.”

The report also identified the five fastest-growing sectors. These are:

• Societies, Associations and Groups – 36.2 per cent
• Tax Services – 34.6 per cent
• Property – 34.3 per cent
• Complementary Therapies – 32.7 per cent
• General Services – 31.8 per cent

The fast growth of the Societies, Associations, and Groups sector, in particular, is attributed to the significant increase in new business insurance quotes in this sector compared to the previous year, an indication that there is a renewed focus on social connectivity and community-minded projects that people want to get involved in.

“Despite economic challenges, certain sectors have experienced impressive growth, which signals new opportunities for business owners and investors alike. By understanding these shifts, businesses can better position themselves for success in 2025 and beyond.” she added.

On the other hand, five sectors have been identified as having slow growth. These are:

• Surveying
• Data processing, web hosting and electronic information storage services
• General Retail
• Tertiary Education
• Wood and Paper Manufacturing

The report noted that the decline in surveying could be due to a slowdown in infrastructure projects and a shift towards firms that offer bundled services that include engineering, construction management, and environmental assessments.

The rise in automation and the dominance of large cloud providers has also been cited as a factor in the decline of the data processing, web hosting, and electronic information processing services sector. However, Kenny pointed out that declining sectors still offer unique opportunities for entrepreneurs.

“Even a shrinking industry can present unique business opportunities for those willing to take on the challenge,” she said. “Rather than being intimidated by the growth or decline in their sectors, small business owners should utilise times of change by leveraging these shifts to build on their strengths.

Kenny concluded, “Focusing on what makes your business stand out – whether that’s offering a specialised service or reaching a niche audience – can help position you for long-term success.”

The post Which SME sectors are growing – and which are slowing – in 2025? appeared first on Inside Small Business.

That’s where insurance brokers, who are licensed professionals, come in. They get to understand what kind of risks are facing your business and help you manage those risks and find the right insurance, with the right cover at the right price.

There’s never been a higher need for insurance brokers in Australia. Why? For three main reasons.

Money’s tight

It’s tough times in the Australian economy, and small businesses often bear the brunt of that. Recently, the effects of the economic climate have seen businesses hit by the highest insolvency figures in more than a decade.

Most businesses have insurance to cover their business assets, their employees and customers, as well as earnings. Insurance brokers are there to help you get the best possible coverage for the best possible price. In many situations, they’ll save you money because they have the expertise and knowledge in place to help you navigate the complex world of insurance and make sure you’re adequately protected.

Natural disasters are on the rise

We’re facing the effects of climate change. We’re seeing more intense bushfires, longer and hotter heat waves, rising sea levels, worsening coastal hazards, stronger cyclones, and more frequent flooding. The economic cost of Cyclone Jasper and the intense thunderstorms that took place last Christmas in Queensland was a whopping AUD $3 billion.

So, knowing what you need and how to get it from an insurance point of view is getting more and more complicated. That’s why having an insurance broker to make sure you get the exact cover for what you need is so important. In the event of a disaster, you want peace of mind. An insurance broker makes sure your policy is right.

Cyber risks are becoming real

A cyber crime was reported every six minutes in the 2022-2023 financial year. That’s 94,000 in one year alone. And the average cost of a breach now sits at $46,000.

Cyber insurance is of increasing importance in Australia and an insurance broker can help you understand what your policy covers and to help make a claim if an attack happens. They’ll make sure you get cover that will actually protect you in the event of an attack.

Your broker

Businesses have been operating under a tight belt for quite a while now, and as such, most are always looking for ways to continue to get the same value for less cost. Using a broker seems like one of the most obvious ways to do that. And you can rest assured that they’ve got your back.

The post Three reasons why small businesses should use insurance brokers appeared first on Inside Small Business.

A 2022 survey by BizCover for Brokers insurer partner Vero found that 57 per cent of the small and medium businesses surveyed were only “mostly covered” or “partially covered” for risks. Of those, 34 per cent have admitted they had no plan if their business experienced an adverse event.

“Underinsurance is a year-round issue for small businesses, but summer trading can make these coverage gaps more serious,” Jane Mason, Head of Intermediate Business at insurtech platform BizCover for Brokers, said. “It’s essential that brokers are able to help SMEs identify and address areas where they do not have adequate cover.”

The Vero survey also found that 52 per cent of SMEs who purchase insurance through a broker said that they are completely covered for insurable risks compared to just 39 per cent of direct buyers, underscoring the vital roles that broker education and advice play in helping SMEs avoid underinsurance.

Bizcover is urging brokers to reach out to SME clients in retail, hospitality, beauty, and other key industries to ensure that clients have the right cover and that their policies can handle the November to February rush.

“There are areas where end-of-year trading may prompt policy adjustments,” Mason said. “Contents cover is a prime example, businesses may store more stock in the lead up to Christmas and their policy should be reviewed to ensure they are adequately covered for the increase in stock. Businesses outside of retail like cafes, restaurants, and salons might also want to check that they have appropriate cover and adequate limits to handle summer trading.”  

Mason pointed out that business Interruption cover may also need to be reviewed to ensure adequate protection during peak trading periods, as an unplanned closure during the busiest time of the year might impact a business’s ability to survive future trading downturns.

And cyber policies should also be checked, as cyberattacks occurring during the summer season may be especially inconvenient as they can bring operations to a standstill, costing SMEs far more than they realise in lost profits and productivity. In such a case, the 24-hour incident response services provided by most cyber liability policies can help insured small businesses contain the damage from a cyberattack and restore their operations as quickly as possible.

The post Insurance brokers urged to review SME client policies due to increased Christmas trading risks appeared first on Inside Small Business.

“Underinsurance is more than just an industry buzzword,” Brad Miller, General Manager of BizCover, warned. “For many small-business owners, underinsurance could mean the difference between staying in business or being forced to close up shop.”

Defined by the Insurance Council of Australia as not having “enough insurance to cover the replacement value of the items you’re insuring”, underinsurance is common in Australia according to BizCover. However, many small businesses reportedly have no idea how devastating underinsurance can be. A 2022 survey of Australian small and medium businesses, conducted by insurer Vero, found that only 43 per cent of respondents thought they were completely covered, 51 per cent said they were mostly covered, while six per cent admitted they were only partially covered.

The same study also reported that 34 per cent of business owners who were either mostly or partially covered had no alternative plan if the worst were to happen to their business. Another 20 per cent said that a negative event would mean selling, shutting down or temporarily closing their business.

While underinsurance is a year-round issue for small businesses BizCover noted that it may be more pressing during the season rush given that summer trading is not business as usual for many businesses. For one, changes in how they operate from November to February may increase risks or create new ones.

“A classic example is a retail shop storing more stock in the lead up to Christmas,” Miller explained. “If a fire or storm damages your retail stock, you could be out of pocket replacing it without the right type of insurance. In this case reviewing or adding appropriate contents cover to a Business Insurance Pack.”

Despite underinsurance being widespread amongst Australia’s small businesses, correcting it can be easy according to BizCover. By thinking about their business such as how it operates, what activities or products it offers, and their industry, small-business owners can begin to decide what types of insurance may benefit their business or might be required for them to trade.

Small businesses are also reminded to check that other policies are still current. Public Liability insurance is typically required to lease commercial premises, but BizCover said that it’s not unheard of for business owners to accidentally let these policies lapse.

The post Small businesses warned over underinsurance ahead of summer appeared first on Inside Small Business.

No matter what industry you work in, the size of your small business, or whether you’re product- or service-based, every owner faces a range of broad and specific risks that could impact their business. It’s important to know what risks your business faces day to day and to use tools like insurance to help you mitigate those risks. 

Business insurance acts as a safety net to protect your and your business if an accident or incident occurs. It’s important to consider a range of factors to ensure you’ve got the most comprehensive and well-suited cover for your business’ needs. While working on your list of never-ending things to do, it is business-critical to set aside the time you need to review your current business insurance. Some great times to do this include at renewal time, as your business grows, or as your products and services change. 

Here are the top five things small-business owners should consider when reviewing their business insurance:

1. Has your business changed in the past year? Consider updating your policies and check for inclusions or exclusions.

Business insurance is not a one-size-fits-all solution. Depending on your small business, you may need multiple policies to help protect the risks you are most concerned about mitigating. If you provide goods and services, having public and product liability insurance may be a start; however, if your business involves providing advice to clients and customers, then you should look into professional indemnity insurance, too.

As your business changes, it’s important to reassess the cover you have to ensure it’s still relevant, or to add additional cover if it’s needed. For example, if your business grows to the point of having a management team and employees, management liability insurance may be something you need to consider. Here are some prompts to help you assess any changes to your business: Have you grown in revenue or employees? Have any of your business activities changed? Do you, or your staff members, use a car for work purposes? Do you have new equipment that needs to be covered? Have you moved office or shop locations? 

Any changes like the above can affect your existing insurance or may mean you need another policy and you should be updated as soon as possible to ensure you’re appropriately covered.

2. Doing something new, such as Telehealth, online sales or operating your business from home?

With life post COVID-19, there have never been more businesses providing such a broad range of services – from providing telehealth services while you holiday overseas, to starting your own online shop, importing some new products or starting to operate your business from home. These all may or may not be covered by your existing insurance. It always makes sense to ask specific questions and ensure your cover is adequate for all your business needs.

This may mean you need to shop around. With new types and ways of operating, it can take a few days or a week or two to sort this out. 

3. Does your business have exposure to a possible cyber event?

We’ve all heard about the large-scale cyber breaches that have happened over the past year in Australia, but did you know that small business is the target of 43 per cent of all cyber crime in Australia? And it’s estimated Australian businesses lose approximately $300 million a year to cyber crime. Most small and medium-sized businesses (almost nine out of 10) estimate that they will recover from a cyber incident ‘immediately’ or ‘within a few days’, regardless of whether they had previously experienced a cyber incident. But reports to the ACSC show that businesses commonly underestimate their cyber incident recovery period.

It’s important for small-business owners to know that many businesses only partially recover from cyber incidents, permanently losing critical data or finances, which can be devastating.

There are a number of ways small-business owners can limit the potential impact of these crimes – cyber.gov.au is a great place to start. Cyber insurance policies can help to protect your business financially if a cyber crime happens. They can cover the costs of a cyber event and provide the response, as many insurance companies have 24/7 cyber incident response teams. This cover can also protect your business from losses if a customer or supplier makes a claim against you for a cyber event that caused them loss or damage. 

4. Comparing cover and pricing – where to start?

When it comes to business insurance, a cheaper insurance product isn’t necessarily what’s best for your business. But that’s not to say it’s definitely not the best either! 

When comparing prices between companies and products, the most important thing to keep in mind is that the product is what you are required to take out, plus the limits you get. Secondly, it’s always worth considering if the activities described as our occupation or business by the policy match what you are doing. If you aren’t sure, it may be best to pick up the phone and speak with an insurance company representative, or a broker.

5. Do policy limits match your needs?

Policy limits are the maximum amounts the insurance policy will pay out for covered losses or claims. Why are these important? If your policy limit is too low, you might not have appropriate cover in the event of a claim, which could lead to out-of-pocket expenses your business may need to pick up. And if policy limits are far too high, you may be paying more than you need to for your cover.

To best assess what policy limits you need, think about the risks your business faces. What is the worst-case scenario that could take place? How much would that set you back financially? You can sometimes negotiate for a third party to cover this cost, or ask your client to reduce a limit that you might be asked to take out. This can help ensure the cover remains cost effective for you and your business.

At the end of the day, your small business is your livelihood, and no one can be better placed to make the right decisions about what you need to protect and what cover you need. You’ve worked hard to get it to where it is now. But be prepared. Just one small incident or accident can sometimes cause huge damage. 

Information provided is general advice only and has been prepared without taking into account any person’s particular objectives, financial situation or needs.

This story first appeared in issue 41 of the Inside Small Business quarterly magazine

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The concern comes in the wake of a new report published by the Actuaries Institute which fouhd that the median home insurance premiums are up 28 per cent in the year to March 31, the biggest increase in 20 years and that people in flood-prone areas are facing price hikes of up to 50 per cent.

The actuaries noted that part of the increase was due to higher building supply costs, but it was also “driven by climate change impacts we’re already seeing.”

Prior to this, a report published last week by consumer group Choice found that 87 per cent of policyholders in Australia have seen insurance premiums rise, and two in five people reported having their homes impacted by an extreme weather event in the last five years.

Ulmarra farmer and Farmers for Climate Action member Peter Lake also chimed in, saying that climate change has made floods on his northern New South Wales farm more frequent and severe, and made his farm insurance unaffordable.

“We’ve dealt with major floods in 2009, 2011, 2013, and 2021 but nothing could have prepared us for February 2022. We lost fences and fodder and were forced to sell most of our stock. Even when the waters receded we were flood free but not mud free. We battled mud for months,” he said.

Luke added, “I was quoted $19 000 per year to insure my farm which is just too much. We’ve had to weigh  up not insuring our farm equipment, sheds and fences. We’re only insuring the house and a horse float now. To stop the costs of climate change going higher we need urgent action to reduce emissions, including from coal, oil and gas, right now, this decade.”

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The Indigenous Business Insurance Research Report reveals that while 95 per cent of First Nations small-business owners agreed that insurance is a ‘must have’ for their business, 50 per cent said that there were likely things they needed insurance for that they weren’t aware of. A further 16 per cent do not have any insurance at all, with that number jumping to 23 per cent for businesses that were established within the last four years.

The research also notes that a significant portion of First Nations businesses are home-based start-ups and micro-businesses, and only 21 per cent have general property cover as compared to 42 per cent of Australian small businesses broadly.

“First Nations businesses provide important social and economic benefits to First Nations communities through employment, empowerment and self-determination,” Sema Musson, General Manager, Conduct and Customer Advocacy at Allianz Australia, said. “The disparity in general property insurance for First Nations small businesses indicates a particular risk for those businesses operating in the home and expecting coverage under their home and contents policy.

“Business stock may not be covered, or have very limited cover, as part of general home and contents insurance, and in addition, if an incident was to occur in a home where a small business operates, the home insurance cover may also be void,” Musson added.

Allianz Australia commissioned the study as part of its Reconciliation Action Plan, engaging Indigenous engagement consultancy Winangali to conduct research into the experiences, attitudes and behaviours of First Nations small businesses with respect to their business insurance needs.

The research also found that First Nations small business owners feel the cost of premiums is not the most important factor when purchasing insurance, with almost 90 per cent indicating that having products that suit their business needs is extremely important. Almost 70 per cent said that having an insurance company that understands First Nations business is extremely important in their decision, however, only eight per cent feel that insurance companies understand First Nations businesses.

“Indigenous business is a major growth sector and not enough research has been undertaken in this area,” Noel Niddrie, Managing Director of Winangali, said. “The decision by Allianz to do this research is insightful and will benefit our mob, our businesses and our communities.

“Too often First Nations peoples are seen as an economic burden and it is a revelation when corporate Australia sees the potential spending power of the emerging Indigenous middle class,” Niddrie added. “It is the pursuit of facts that will allow us to break down the myths that persist about Australia’s first peoples.”

The report was published to coincide with Allianz’s launch of their Home-Based Insurance Toolkit which is designed to help small-business owners better understand the cover required for businesses operating in the home. Reflecting the growing need for this information in the First Nations business community, this toolkit was created in collaboration with First Nations communications consultancy Iscariot Media.

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As of 30 June 2021, there were almost 2,500,000 businesses actively trading across Australia, so this issue potentially affects many business owners.

If you simply work from home for an employer, this issue doesn’t affect you. It only applies if you are running a business from home and have registered an ABN (Australian Business Number) for your business.

If your ABN is registered to your home address, then you need to let your home and contents insurer know. Running a business can be classed as a ‘risk’ in your insurer’s eyes, which usually means higher premiums. If you don’t disclose it, though, you could risk voiding your insurance policy altogether.

From 5 October 2021, people taking out insurance policies have a duty to “take reasonable care not to make a misrepresentation”. Prior to this, if you took out insurance you had to disclose “every matter” that a reasonable person would expect to be relevant.

The Banking Royal Commission found the duty of disclosure, which is set out in the Insurance Contracts Act 1984, doesn’t require an individual to guess what information might be important to their insurer. Instead, the insurer needs to ask questions to elicit the information that it requires.

Essentially this means that when you take out insurance, you don’t have an obligation to try to think of every matter that might be relevant to your insurer, but you do need to take reasonable care to answer all the questions they ask you truthfully. Your insurer should explain to you what your disclosure obligations are and what types of things you need to disclose

So, how does this look in reality? In one example, a man was told his insurance would be cancelled immediately because he had been running a food truck from home. The man said he never tried to hide his food truck and he even had separate business insurance for it, but it never occurred to him to mention it to his home and contents insurer.

Another couple was running a business from home, which simply involved a stall at the end of their driveway selling eggs using an honesty box. They made about $60 – $70 per week from the eggs. In late 2021, they had a house fire and tried to claim insurance (for which they had been paying $2000 per year for five years) and were told that because they ran a business on the property, their insurer would not cover them. Their insurer has said that one of the questions the couple were asked when they took out the insurance was whether they ran a business from home.

If you are unsure whether your insurance policy covers you properly, or if your insurer has knocked back a claim, seek legal advice.

A lawyer can assist you to review your policy terms and conditions, negotiate with your insurer or even lodge a complaint with the Australian Financial Complaints Authority (the complaint body that resolves disputed insurance claims), if you’re unhappy with your dealings with your insurer.

The post Beware – running your business from home could void your home insurance appeared first on Inside Small Business.