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

Understanding The Costs: How Much Does Public Liability Insurance Typically Cost?
Understanding The Costs: How Much Does Public Liability Insurance Typically Cost?
Public liability insurance is a crucial form of protection for both businesses and individuals, safeguarding them against potential claims for personal injury or property damage that occur as a result of their operations or services. In an increasingly litigious society, having this coverage can mean the difference between staying afloat financially and facing business closure due to unexpected claims. - read more
The Importance of Public Liability Insurance in the Australian Labour Hire Industry
The Importance of Public Liability Insurance in the Australian Labour Hire Industry
The Australian labour hire industry has seen a significant rise in recent years, and with this growth, comes new and unique risks that companies in this industry must be prepared to navigate. One such risk is the potential for accidents or damages to occur in the workplace, which is where public liability insurance comes in. This article will explore the definition of public liability insurance and why it is so important for labour hire companies in Australia. - read more
Is Your Business Fully Protected? Top Signs It’s Time to Renew Your Liability Insurance
Is Your Business Fully Protected? Top Signs It’s Time to Renew Your Liability Insurance
As a business owner, one of your top priorities is safeguarding your enterprise from unforeseen events that could lead to financial liabilities. Liability insurance is the cornerstone of this protection, offering a safety net against claims that could otherwise derail your business's financial stability. However, it's not just about having insurance; it's crucial to ensure your coverage is current and adequate for your evolving business requirements. - read more
The Cost of Safety: How Much Public Liability Insurance Does Your Australian Business Need?
The Cost of Safety: How Much Public Liability Insurance Does Your Australian Business Need?
As a business operating in Australia, understanding the ins and outs of public liability insurance is not just recommended, it's essential. This type of insurance serves as a safeguard, protecting your business against the financial repercussions of lawsuits and claims arising from third-party injuries or property damage due to your business operations. In a world where one unintended mishap can lead to costly legal battles, public liability insurance stands as your first line of defense. - read more
How Public Liability Insurance Can Save Your Business During a Crisis
How Public Liability Insurance Can Save Your Business During a Crisis
Public liability insurance is designed to protect your business from financial loss if you are found liable for causing injury or property damage to a third party. This type of insurance covers legal costs and any compensation claims that might arise from accidents or incidents involving your business operations. - read more

Insurance News

What the Latest Truck Crash Findings Mean for Your Cover
What the Latest Truck Crash Findings Mean for Your Cover
30 Jul 2026: Paige Estritori
Fresh heavy vehicle crash research from transport insurer NTI has again put a spotlight on the practical causes of serious truck incidents, with speed for the conditions, fatigue, distraction, equipment issues and vehicle fires all remaining central risk themes for Australian operators. For truck owners, fleet managers and owner-drivers, the findings are more than a safety update. They are a reminder that risk management and insurance outcomes are closely connected. - read more
Why truck fire risk deserves a closer insurance review
Why truck fire risk deserves a closer insurance review
29 Jul 2026: Paige Estritori
A fresh round of transport safety coverage has put truck fires back on the risk agenda for Australian operators. While major crashes often attract the most attention, a vehicle fire can be just as disruptive for a business: the truck may be written off, the load may be damaged, a route may be blocked and the operator may lose income while replacement equipment is sourced. - read more
Insurance Complaint Trends Put Claims Preparation Back in Focus
Insurance Complaint Trends Put Claims Preparation Back in Focus
29 Jul 2026: Paige Estritori
Fresh industry attention on Australian Financial Complaints Authority complaint trends is a timely reminder that insurance value is not only tested when a policy is bought. For trade businesses, the real test often comes when a damaged tool trailer, public liability allegation, stolen equipment claim or storm-affected worksite needs to be resolved quickly so the next job can proceed. - read more
What a More Stable Income Protection Market Means for Your Pay Packet
What a More Stable Income Protection Market Means for Your Pay Packet
29 Jul 2026: Paige Estritori
Recent APRA life insurance performance data has given the income protection sector a cautiously positive signal: the market appears to be moving through a more stable phase after several years of product redesign, pricing pressure and closer regulatory attention. For consumers, the important point is not that cover has suddenly become simple, but that insurer sustainability and claim reliability remain central to the value of any policy. - read more
New APRA Data Reinforces the Need to Review Income Protection Cover
New APRA Data Reinforces the Need to Review Income Protection Cover
29 Jul 2026: Paige Estritori
APRA’s latest life insurance performance data has put income protection back under the spotlight, with disability income products continuing to be one of the more closely watched areas of the sector. While the broader life insurance industry has been showing signs of improved stability, the update reinforces that policies designed to replace income after illness or injury remain sensitive to claims experience, pricing, and changing work and health trends. - 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
Subrogation:
An insurance carrier may reserve the "right of subrogation" in the event of a loss. This means that the company may choose to take action to recover the amount of a claim paid to a covered insured if the loss was caused by a third party.