Many Australian businesses risk financial ruin by not having the right insurance and few seek the help of insurance brokers on how to protect their business, according to a new report by QBE.
QBE’s survey of more than 600 SMEs revealed that 62% of small business owners believe they are unlikely to have the right insurance in place to protect their business, while 33% admitted to not knowing where the money would come from or to being unable to finance the legal costs if faced with a liability claim. Only 42% of those polled would claim against an insurance policy.
Aaron Gavin, general manager for small to medium enterprises (SME) at QBE Australia, said the findings showed the need to educate small business owners about their insurance needs.
“Insurers and brokers are ideally the first point of contact for advice about insurance, however our survey shows that more than half of the business owners turn to their accountant or financial advisor first for advice about insurance, while just over 40% look for information themselves, mostly online,” Gavin said.
“Almost a quarter of business owners say they ask their family and friends, and only 15% initiate the conversation with their insurance broker. Ensuring that you have the right level of cover for the risks that your particular business might face is essential to protect your livelihood. An insurance professional is best placed to provide that advice. This new SME-focused report makes a compelling case for keeping business insurance up to date and I hope business owners and insurance brokers will find it useful for starting open and frank conversations about having the right cover.”
Visit the QBE website to access the full report, SMEs and Insurance: A pulse check on risk trends for businesses report.
