Are you complacent about the risks your small business faces?

Coffee shop owner working on laptop

If you were to write down the risks your small business currently faces, how many do you have protection for? And are you sure that protection will cover you if the worst were to happen? 

Only 43 per cent of Aussie small businesses think they are fully covered from insurable business risks, according to a recent Vero report

While this shows a level of understanding among SMEs about their cover levels, 34 per cent said they have no plan if something bad were to happen. Some others haven’t even thought about what might happen or simply choose to cross that bridge when they come to it. 

From floods, bushfires, and the COVID-19 pandemic to supply chain issues and the rising cost of living, Australian small businesses have had to contend with a lot recently.  

This has had an impact on the revenue of many businesses, causing some to look for ways to save money. 

It’s tough out there, and it’s tempting to put your insurance on the chopping block. But if it’s tough now, imagine what it could be like if a claim was made against you. 

Take this hairdresser for example**. A hacker gained access to their phone system and made calls to a premium number, $30,000 of unauthorised calls. Imagine where they’d be if they didn’t have a Cyber Liability policy* in place to cover the bill. 

Or the mechanic who was left with a significant claim after they crashed a customer’s vehicle whilst on a test drive**. Luckily, they had Public Liability insurance* in place that covered the $34k for the vehicle and close to $10k for the customer’s car hire. 

And even the chippy who suffered a bulge in his lower back while lifting a ladder**. The doctor deemed the back injury as chronic. Fortunately, his Personal Accident & Illness cover* kicked in and he received weekly payments of $1200 for three months. 

What can small businesses do? 

While the current situation is tough, there are some things Australian small-business owners can do to protect themselves from even worse situations.

Regularly scheduling some time to consider your exposure to risks could help avoid problems later down the track.

Consider what risks your business is exposed to and think about the possible scenarios that could happen if you weren’t protected in the event of a claim. 

After that, consider jumping online to compare quotes so you could then decide whether the price of the cover justifies the protection.

Although reviewing your cover at renewal is a great time to consider your options, you could check in at any point throughout the year. 

While there are many perks to being your own boss, overseeing everything can get quite dramatic. Luckily with BizCover, business insurance doesn’t have to be.  Visit bizcover.com.au to compare quotes or give us a call today, no dramas!  

*This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording.  © 2022 BizCover Pty Limited, all rights reserved. ABN 68 127 707 975; AFSL 501769 

**The provision of the claims examples are for illustrative purposes only and should not be seen as an indication as to how any potential claim will be assessed or accepted. Cover for a claim will depend on the specific circumstances around the loss and would be subject to the terms and conditions of the policy concerned.   Coverage for claims on the policy will be determined by the insurer, not BizCover.