Small Businesses Face Underinsurance Risk
Announcement posted by Safe Hands Insurance Group 13 Sep 2016
Every year in Australia, when natural disasters hit, inevitably the focus turns to insurance and specifically the number of people who are underinsured.
Every year in Australia, when natural disasters hit, inevitably the focus turns to insurance and specifically the number of people who are underinsured. Unfortunately, underinsurance in business is also common, particularly for small businesses such as jumping castle operators and play centres, and those in the security industry.
How bad is the underinsurance problem for Australian businesses?
• Research by Swiss Re Economic Research & Consulting shows that Australia is one of the most underinsured nations in the developed world.
• Studies of Australian small businesses – such as jumping castle operations, play centres and those in the security industry – have shown that more than 60% don’t have insurance for business interruption, 80% don’t have machinery breakdown cover, over 30% are uninsured for burglary and 16% don’t have insurance that covers them for fire.
• A study conducted by the Australian Securities and Investments Commission found that 1 in 6 small to medium business enterprises did not have insurance for their properties. Further research showed that of those businesses that did have insurance for their properties, most were significantly underinsured.
• Approximately 70% of small businesses don’t recover after a major loss or incident.
The importance of insurance can’t be overemphasised when disaster – small or major – hits. Having adequate insurance means your business can bounce back from a setback quickly as you’ll have the finances to fund your recovery. Without adequate insurance, your jumping castle, play centre or security firm may be out of business for a long time, and perhaps join the 70% that go out of business permanently.
Why are many Australian businesses underinsured? There are two key reasons that are regularly cited. The first is a lack of knowledge, with many businesses owners simply not sure whether they were adequately insured or not. The second was cost, with some businesses claiming they couldn’t afford the insurance premiums.
Insurance brokers, such as Safe Hands Insurance Group, can help. They have the experience and knowledge to ensure your business is covered for all types of eventualities, including:
• Injury to jumping castle or play centre users, or injury caused by a security employee
• Third party property damage
• Insurance for vehicle, property (including jumping castle equipment) and liability
• Insurance cover for equipment in transit
• Fire and perils insurance
• Business interruption insurance
• Professional indemnity
• And more
In addition, Safe Hands Insurance deals with a select range of insurance providers, so they can tailor insurance to meet your specific needs, at the best price possible. So, say if you need security industry insurance or plan centre insurance the company excels at creating customised insurance plans tailored to meet such requirements.
The obvious message from all this is that – if you run a jumping castle operation, a play centre, a security firm or any other type of small business – make sure you are adequately covered. Contact an insurance broker who will take the time to understand your needs and provide insurance cover to match.
Safe Hands Insurance Group
C/- 5a Hartnett Close, Mulgrave, VIC 3170
Contact - 1300 744 442
Website - www.safehandsinsurance.com.au
How bad is the underinsurance problem for Australian businesses?
• Research by Swiss Re Economic Research & Consulting shows that Australia is one of the most underinsured nations in the developed world.
• Studies of Australian small businesses – such as jumping castle operations, play centres and those in the security industry – have shown that more than 60% don’t have insurance for business interruption, 80% don’t have machinery breakdown cover, over 30% are uninsured for burglary and 16% don’t have insurance that covers them for fire.
• A study conducted by the Australian Securities and Investments Commission found that 1 in 6 small to medium business enterprises did not have insurance for their properties. Further research showed that of those businesses that did have insurance for their properties, most were significantly underinsured.
• Approximately 70% of small businesses don’t recover after a major loss or incident.
The importance of insurance can’t be overemphasised when disaster – small or major – hits. Having adequate insurance means your business can bounce back from a setback quickly as you’ll have the finances to fund your recovery. Without adequate insurance, your jumping castle, play centre or security firm may be out of business for a long time, and perhaps join the 70% that go out of business permanently.
Why are many Australian businesses underinsured? There are two key reasons that are regularly cited. The first is a lack of knowledge, with many businesses owners simply not sure whether they were adequately insured or not. The second was cost, with some businesses claiming they couldn’t afford the insurance premiums.
Insurance brokers, such as Safe Hands Insurance Group, can help. They have the experience and knowledge to ensure your business is covered for all types of eventualities, including:
• Injury to jumping castle or play centre users, or injury caused by a security employee
• Third party property damage
• Insurance for vehicle, property (including jumping castle equipment) and liability
• Insurance cover for equipment in transit
• Fire and perils insurance
• Business interruption insurance
• Professional indemnity
• And more
In addition, Safe Hands Insurance deals with a select range of insurance providers, so they can tailor insurance to meet your specific needs, at the best price possible. So, say if you need security industry insurance or plan centre insurance the company excels at creating customised insurance plans tailored to meet such requirements.
The obvious message from all this is that – if you run a jumping castle operation, a play centre, a security firm or any other type of small business – make sure you are adequately covered. Contact an insurance broker who will take the time to understand your needs and provide insurance cover to match.
Safe Hands Insurance Group
C/- 5a Hartnett Close, Mulgrave, VIC 3170
Contact - 1300 744 442
Website - www.safehandsinsurance.com.au