Liability Insurance :: Articles

The 5 most common Business Insurance mistakes

What are the most common mistakes business owners make with insurance?

The 5  most common Business Insurance mistakes

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Looking over your insurance premiums each year, you may be wondering how you could save a dollar or two on your next premium. As an intangible asset, it can be difficult to put a value on insurance ... until something goes wrong and you need to claim. In this article, we highlight the five most common mistakes that business owners make when evaluating their insurance requirements:

Not understanding your full Risk Profile

When reviewing your insurance needs, it's essential to sit down and determine what types of events could occur in your business that would create adverse impact. From there, you need to determine what would have the biggest business impact - in terms of dollars, time and effort. Then you need to work out how to ensure that you are adequately covered against these risks.
Often policy holders will do away with one part of a policy thinking that they can save money. For example, they will go for theft, fire and glass coverage, but not take out burglary even though it's a relatively minor additional fee.
Business Insurance
Image for Business InsuranceIf you're in the process of buying or renewing your business insurance, whether it be a factory, a shop, office, warehouse, a farm or whatever .. even a home-based business, we can show you a quick way through the maze of offers and options available on the market. Our Australia-wide broker panel will ensure that you get the best cover for your specific needs … and at the right price to suit your budget.
It is Murphy's Law that the one thing you leave out is the one thing you need to claim for on your insurance. And it can be for the most oddest of items. The strangest story I've heard of is a fish and chip shop that was robbed of all their frozen fish. Although it was never proven, it was suspected that a competitor fish and chip shop, just around the corner, decided that they wanted a freezer full of product to sell without the set up costs!

Not disclosing everything!

Yes, it is true ... if you don't disclose everything upfront when you sign up your insurance policy, the insurance company is quite within their rights to not pay out on your claim. Worst still, they won't even refund your premium paid to date. Therefore, don't hold back. Disclose anything relevant to your insurance upfront to save any drama's at a later date.

Insuring assets at written down value instead of replacement value.

It is essential that you insure your assets for REPLACEMENT value. In other words, how much would it cost you to repurchase the items insured at full price. A common mistake, particularly when purchasing an existing business, is to insure the assets at the "written down" (or depreciated) value, rather than replacement cost.

Being "cheap" on your premium

Don't get caught out by trying to save yourself a few hundred dollars on your insurance premium, to the detriment of being fully insured. Being cheap now could end up costing you thousands of dollars down the track.

Not listening to your Insurance Broker

Your insurance broker is the best person to advise you on insurance cover. Having seen many similar businesses to yours, they have seen other business owners go through the pain that you don't need to. Your insurance broker will know what works for your type of business and how to get it for the cheapest possible price. As an insurance agent, they know the ropes and can maneuver you through the subtleties in insurance policies which will save you dollars in the long term.
It's a quick, efficient and cheap way to grow your profits immediately!

Published: Sunday, 1st Aug 2021
Author: 62

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.


Business Insurance Articles

The Essential Guide to Liability Insurance for Freelancers
The Essential Guide to Liability Insurance for Freelancers
Liability insurance is a type of coverage designed to protect you from claims arising out of injuries or damages to other people or property. For freelancers, who often juggle multiple projects and clients, liability insurance can offer a safety net that reduces financial risk and instability. - read more
The Top 5 Risks Small Businesses Face and How to Mitigate Them
The Top 5 Risks Small Businesses Face and How to Mitigate Them
Running a small business can be both rewarding and challenging. One of the key challenges is the variety of risks that can arise unexpectedly. These risks can range from financial uncertainties to operational hiccups, each potentially impacting your business's success. Understanding these risks and preparing for them is crucial for the longevity and sustainability of any small enterprise. - read more
The Impact of Environmental Liability on Australian Business Operations
The Impact of Environmental Liability on Australian Business Operations
In today's ever-evolving business landscape, the significance of environmental sustainability and legal accountability is increasingly paramount. Australian enterprises, in particular, are encountering a growing need to understand and manage environmental liability. This reality not only influences corporate image but also carries substantial financial and legal ramifications. - read more
Freelancer or Employee? Understanding the Difference and the Liability Implications
Freelancer or Employee? Understanding the Difference and the Liability Implications
The contemporary business landscape in Australia is witnessing a significant shift towards the gig economy, with a growing number of professionals opting for the flexibility and autonomy that freelancing offers. This trend has not only revolutionized the way work is performed but has also introduced new dynamics in the legal distinctions between freelancers and traditional employees. - read more

Insurance News

Understanding Insurance Challenges in Australia's Beauty Industry
Understanding Insurance Challenges in Australia's Beauty Industry
10 Jun 2026: Paige Estritori
In the Australian beauty industry, professionals such as beauticians, hairdressers, and salon owners are facing significant challenges due to escalating insurance premiums. This trend is largely attributed to a lack of competition among insurers, leading to higher costs and limited options for coverage. - read more
AFL Players Face Loss of Brain Injury Insurance Coverage
AFL Players Face Loss of Brain Injury Insurance Coverage
10 Jun 2026: Paige Estritori
As of May 1, 2026, Australian Football League (AFL) players will no longer have insurance coverage for brain injuries under their superannuation policies. This change comes after Zurich Insurance decided to exclude total and permanent disability (TPD) benefits for claims related to traumatic head injuries, concussions, chronic traumatic encephalopathy (CTE), post-concussion syndrome, or any neurological impairments linked to brain injury. - read more
Dynamic Insurance Services Initiates Legal Action Against Major Insurers
Dynamic Insurance Services Initiates Legal Action Against Major Insurers
10 Jun 2026: Paige Estritori
Dynamic Insurance Services has filed a competition lawsuit against Steadfast Group, QBE Insurance, and Allianz Australia Insurance, alleging that these companies engaged in coordinated conduct that effectively cut off its access to essential insurance products. The lawsuit, filed in March 2026, claims that Steadfast terminated its network agreement with Dynamic in early 2026, followed by QBE and Allianz ending their arrangements. This sequence of events led to the loss of authorized representatives and significantly impaired Dynamic's ability to operate effectively. - read more
APRA's New Capital Treatment Reforms for Longevity Products
APRA's New Capital Treatment Reforms for Longevity Products
10 Jun 2026: Paige Estritori
The Australian Prudential Regulation Authority (APRA) has announced significant reforms to the capital treatment of longevity products, including annuities, aimed at bolstering the sustainability and affordability of retirement income products. These changes are set to take effect from 1 July 2026. - read more

Start Here !
Start here!
Cover Amount:
Postcode:

All quotes are provided obligation-free by a participating broker from our national referral partner network. We respect your Privacy.


Knowledgebase
Rider:
An optional provision added to an insurance policy that provides additional benefits or coverage.