Is your small business underinsured?

Business insurance Hub Learn more at businessinsurancehub.com.au THE GREAT underinsurance problem Is small business underinsured? The reality is thousands your of small businesses are leaving themselves exposed to financial risk. We reveal some simple tips to help you avoid underinsurance. Did you know? 90% of small business owners believe they are adequately insured when it comes to their business ... but in reality ... (Cameron Research Group, 2014) 26% 120% OF SMES HAVE 25% of medium businesses NO BUSINESS have no insurance of SMES do not have burglary insurance INSURANCE (RFI, 2014) A beautician in South Australia claimed over $2,000 after her beauty salon was burgled. Micro businesses are most likely to not have insurance (43%), in some cases because they think they are covered by home insurance. (RFI, 2014) %24 2$ Sorry WE'RE CLOSED 4% 59% 17% of small businesses do not have public liability insurance of small businesses do not have business of small businesses do not have fire insurance interruption or loss of profits insurance A customer who slipped and fell on a wet floor in a mechanic's shop claimed for over $39,000 due to injury. A pipe burst in a Victorian café causing water damage to the flooring. The café couldn't operate while repairs were carried out, so the business claimed over $6,000 in business expenses to cover fixed costs, such as rent. An art gallery on the NSW coast claimed just over $42,000 for damage caused after a fire broke out on the premises. Avoid these common UNDERINSURANCE TRAPS POOR ADVICE WRONG COVER BUSINESS GROWTH & CHANGE Home businesses and micro businesses are much more likely to be underinsured. Many small businesses believe business assets will be covered The most common source of advice for SMES is their personal network (SME Index, 2014), which may perpetuate common insurance myths and misinformation. Businesses change from year to year (and often more regularly than that). Insurance policies need to be kept up to date. by home or personal insurance, which is usually not the case. TOP TIPS FOR STAYING COVERED 1. Review your insurance policies regularly and keep them up to date. 2. Cover items for their replacement cost, not their purchase cost. 3. Keep inflation in mind. 4. Remember that you can usually claim your business insurance as a tax deduction (check with your accountant). 5. Consider a broker or adviser who may be able to provide expert advice and knowledge relevant to your industry. In 2014,92% of broker clients were satisfied or somewhat satisfied. (SME Index, 2014) Based on industry research performed in 2014 by the Cameron Research Group, except where otherwise noted. This material has been provided by AAI Limited ABN 48 005 297 807 (AAI). It does not take into account your personal objectives, circumstances or needs. The information provided does not constitute advice. Whilst AAl exercises due care and skill in preparing this material we do not warrant its accuracy or completeness. Business insurance Hub Learn more at businessinsurancehub.com.au