Business NSW Central Coast has welcomed Australian Small Business and Family Enterprise Ombudsman Kate Carnell’s call for urgent government action as many businesses were forced to close their doors after failing to take out public liability insurance.
Carnell’s insurance inquiry revealed that “hundreds of businesses” said they face closure if insurance remains unavailable to them. She is now urging the government to implement her insurance inquiry recommendations to help small businesses access essential insurance products, including public liability insurance.
“Small businesses have told us they have either been denied insurance outright, or their premiums have as much as tripled in a few years, effectively pricing them out of the market,” Carnell said.
Business NSW Central Coast Regional Director Paula Martin expressed her concern for businesses that were unable to trade when hit by recent disasters due to lack of appropriate insurance.
“The experience of 2020 highlights how important it is for businesses to get proper advice by insurance specialists to minimise the impact on their business if disaster strikes,” Martin said, as reported by Coast Community News.
Business NSW Central Coast’s survey of nearly 2,000 small businesses found that 70% of business owners believed they could be doing more to reduce insurance costs.
“Over a third of business owners find it complex and struggle to keep up with the administrative side of insurance policies, which is why Business Australia partnered with AON to help businesses ensure that they are properly protected,” Martin said.
“With 62% of small businesses yet to take out adequate cover, the new referral service will simplify the insurance review and help [them] to find the right insurance. The next few years for business will continue to be volatile and fragile, so a review of the insurance regulatory environment to make insurance more affordable at both a State and Federal level is vital to reduce business costs and remove unnecessary barriers to our economic recovery.”
