Is your Business Underinsured?

Northern Insurance Solutions-is your business underinsured

1 in 10 Australian small businesses with insurance don’t have enough cover to protect themselves. When did you last do a review of your business insurance to see what you’re covered for?

Your business is probably one of the most valuable assets you have – so it makes sense to protect it in good times and bad.

One of the major reasons why small businesses in Australia fail, is inadequate cash flow.

That’s where having the right level of insurance can make all the difference by helping to ensure your business continues to operate smoothly if the unexpected happens.

The risk of underinsurance

Unfortunately, 1 in 10 Australian businesses with insurance don’t have enough cover to protect themselves against business disruption, legal liabilities or loss or damage to their assets.

This is referred to as ‘underinsurance’ and it can greatly increase the risk of a business having to close down if something goes wrong.

So why are so many businesses underinsured?

Some business owners are driven by low premiums and don’t take the time to make sure they are adequately protected after an insurable event. As a result, the sum insured may not be enough to cover losses – or the terms of their policy may limit the amount that can be recovered.

It’s also common for business owners to underestimate either the reinstatement or replacement costs of their business assets after a damaging event such as a fire or storm.

If the sum insured doesn’t reflect an up-to-date reinstatement or replacement cost, the owners will be underinsured and may face substantial out-of-pocket expenses if they need to make a claim.

How do you know if you are underinsured?

You are at risk of being underinsured if:

  • You haven’t updated your insurance cover to reflect the growth of your business.
  • Your insurance is based on an outdated replacement cost of your business assets.
  • You are covered for damage to your business premises but have not considered other forms of financial loss such as business interruption and management liability.

Type Business Insurance

How we can help

When you’re running a business, sorting out your insurance cover often drops to the bottom of your never ending to-do list. That’s where we can help you.

At Northern Insurance Solutions (NIS), we do the hard work of reviewing your insurance needs, adapting your cover as your business changes, and giving you peace of mind that your business is properly insured.

Northern Insurance Solutions – Locals Covering Locals

Based in the Burdekin, Northern Insurance Solutions fight for the rights of North Queensland businesses to receive quality insurance policies that are ‘value for money’ and supported locally by a professional, results-driven team who care!

Our experienced, friendly, and reliable insurance team pride themselves on their holistic approach for creating effective insurance solutions using globally branded products.

With a staff combined 100 years of experience, you can trust in our team to provide a holistic approach for creating effective insurance solutions using globally branded products from Steadfast.

Speak with us about how we can work with you to help make your business more resilient.
Call our office in Ayr today on 07 4783 1310 to discuss.

Read about our approach to managing business insurance.

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Learn more about the types of business insurance available.

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Learn about how to choose the right business insurance cover.

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Northern Insurance Solutions
Locals Covering Locals

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