Liability Insurance Australia :: 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

Insurance Essentials: Protecting Your Small Business with Public Liability Coverage
Insurance Essentials: Protecting Your Small Business with Public Liability Coverage
Running a small business in Australia comes with its own set of challenges and risks. One crucial aspect that should never be overlooked is insurance, particularly public liability insurance. The reason is simple: it offers essential protection against claims of property damage or personal injury caused by your business operations. - read more
Public Liability Insurance for Events: What Organizers Need to Consider
Public Liability Insurance for Events: What Organizers Need to Consider
Public liability insurance is a type of coverage designed to protect businesses and individuals from the financial fallout associated with claims for injury or damage caused to third parties. It is particularly crucial for event organizers, who are responsible for ensuring the safety and security of attendees, vendors, and participants. - read more
Is Liability Insurance Mandatory in Australia?
Is Liability Insurance Mandatory in Australia?
Liability insurance is not automatically mandatory for every Australian business, but it can be required by law, licence conditions, contracts, leases, tenders, professional rules or event permits. This guide explains when cover may be compulsory and how to check your obligations. - read more
Proven Strategies for Slashing Your Business Liability Insurance Costs
Proven Strategies for Slashing Your Business Liability Insurance Costs
Welcome to our comprehensive guide on public liability insurance, an essential safeguard for businesses across Australia. Navigating the complexities of liability insurance can be a daunting task for many business owners, but it’s a critical component of your business protection plan. If incidents such as accidents or property damage occur, liability insurance is the barrier that stands between your business and financial calamity. - read more
Decoding Public Liability Insurance: Is It a Must-Have for Your Australian Startup?
Decoding Public Liability Insurance: Is It a Must-Have for Your Australian Startup?
Public liability insurance is an integral safety net designed to protect businesses from the financial risks associated with lawsuits or claims. It provides coverage when a business is found legally responsible for personal injury to a third party or damage to their property. This form of insurance can significantly reduce the burden of legal fees, compensation claims, and other associated costs that may arise from unforeseen incidents. - read more

Insurance News

What NSW Emergency Services Levy Reform Could Mean for Strata Communities
What NSW Emergency Services Levy Reform Could Mean for Strata Communities
01 Aug 2026: Paige Estritori
New South Wales strata communities should keep a close watch on renewed efforts to reform the way emergency services are funded through insurance premiums. The long-running concern is that adding emergency services charges to insurance bills can make cover look more expensive, particularly for apartment buildings, mixed-use schemes and larger owners corporations already managing high rebuilding values and complex risk profiles. - read more
Insurance Complaints Put Claims Preparation Back in Focus
Insurance Complaints Put Claims Preparation Back in Focus
01 Aug 2026: Paige Estritori
The Australian Financial Complaints Authority’s latest reporting has again highlighted insurance as a major source of disputes, with claim delays, communication breakdowns and disagreements over policy outcomes remaining common pressure points. For domestic and home service businesses, the message is practical: the strength of a policy is often tested not when it is bought, but when a claim is made. - read more
What Storm Claims Teach Freelancers About Cover
What Storm Claims Teach Freelancers About Cover
01 Aug 2026: Paige Estritori
The insurance fallout from Ex-Tropical Cyclone Alfred is a timely reminder that severe weather is not just a household issue. For Australian freelancers, consultants and sole traders, a storm can interrupt work, damage essential equipment, delay client delivery and expose gaps in cover that only become obvious at claim time. - read more
Why Trainers Should Recheck Cover as Costs Rise
Why Trainers Should Recheck Cover as Costs Rise
01 Aug 2026: Paige Estritori
Fresh industry commentary on business underinsurance is a timely reminder for personal trainers, fitness instructors and small studio owners to look beyond the headline price of a policy. While parts of the commercial insurance market have become more competitive, rising replacement costs and changing business models can still leave fitness operators exposed if their cover has not kept pace. - read more
What APRA’s Latest Numbers Mean for Life Insurance Buyers
What APRA’s Latest Numbers Mean for Life Insurance Buyers
01 Aug 2026: Paige Estritori
The latest quarterly life insurance performance update from APRA points to a sector that appears more stable than it was during the difficult income protection years, but still faces the familiar challenge of keeping cover sustainable and affordable for Australian households. - 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
Occupational Hazard:
A risk associated with the nature of a particular occupation, which may affect insurance premiums.