Is your business one of the 62% of SMEs that is likely to be underinsured?


Two out of three SMEs are underinsured - avoid becoming a statistic


A startling 62% of Australian SMEs say they are unlikely to have the right insurance in place, despite 87% of small business owners agreeing that a liability claim could put them out of business, cause them to lose revenue, lose clients, or dry up cash flow.


Regardless of the size of your business or the industry you work in, liability claims can and do happen. It is imperative that you have the right business insurance and the New Year is an ideal time to sort it out so contact your EBM Account Manager to discuss any changes to your business activities which may increase your liability exposures and any other policy requirements.


According to the QBE SMEs and Insurance Report, the 10 most common liability risks affecting small business are faulty workmanship; accidental damage to other people’s property; water damage; impact/damage by vehicle; slip, trip and fall; excavation and drilling damage; impact by object injury; lifting, carrying or putting down objects; faulty product; and fire.


Before speaking to your EBM Account Manager, consider these key questions:


1. Public liability

  • Has the way you do business changed in any way? For example, are you and your team on-the-road or office-based?
  • Do you engage in activities that might increase the risk of third-party property damage, such as maintenance and repairs or cleaning?
  • Do you employ subcontractors?

2. Professional indemnity

  • Have there been changes to your customer base or the type of work you do?
  • Have there been changes to your requirement to have PI cover? For example, have you entered into contracts requiring a higher level of cover or have licencing requirements changed?
  • Has the source of your business income changed?

3. Business insurance

  • Have you moved premises?
  • Have you purchased new equipment or contents?
  • Have you made improvements to the building?
  • Has revenue significantly increased or decreased? (This can affect your Business Interruption cover.)

4. Management liability

  • Has there been a change in management or business structure?
  • Have there been changes to legislation that impact your business?
  • Does your policy cover all the risks you currently face? For example, employment practices liability, cyber liability, crime protection and statutory liability.

5. Workers' compensation

  • Have staff numbers or remuneration levels changed?
  • Have there been any changes to the type of work your employees do?
  • Are your personal insurances (life, accident and income protection) adequate?

When renewing your policy, it is important to check that all the information you originally supplied to the insurer is still correct. If there have been any changes to your circumstances, you need to advise the insurer.


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