5 Common Business Insurance Mistakes Australian Businesses Make (And How to Avoid Them)

This article provides general information only and has not taken into account your objectives, financial situation, or needs. You should consider the appropriateness of any information in regard to your circumstances and seek professional financial advice where appropriate.

Running a business in Australia comes with its fair share of challenges. From managing cash flow to keeping customers happy, business owners have a lot on their plates. Unfortunately, insurance often falls to the bottom of the priority list—until something goes wrong. At Remingtons Insurance Brokers, we've been helping Australian businesses protect themselves since 1982. Over the years, we've seen the same mistakes crop up again and again. The good news? They're all avoidable.

1. Assuming "General" Business Insurance Covers Everything

   Many business owners think a basic business insurance policy will protect them from all risks. The reality is quite different.
   The problem: Standard business insurance typically covers property damage and general liability, but it won't protect you from professional mistakes, cyber attacks, or employee injuries.
   The solution: Consider working with an insurance broker to conduct a proper risk assessment of your business. Depending on your industry and operations, you may benefit from additional coverage such as professional indemnity insurance, cyber insurance, or workers compensation.
   

2. Underinsuring Assets and Stock

   It's tempting to reduce insurance costs by undervaluing your business assets. This strategy can backfire spectacularly when you need to make a claim.
   The problem: If your machinery, equipment, or stock is worth $500,000 but you're only insured for $300,000, you'll face a significant shortfall if disaster strikes.
   The solution: Many businesses find it helpful to review their asset values annually. Consider factoring in replacement costs rather than just depreciated values, as the cost of replacing equipment may exceed what was originally paid for it.
   

3. Not Updating Your Policy as Your Business Grows

   Your business isn't static, so your insurance shouldn't be either.
   The problem: That policy you took out five years ago probably doesn't reflect your current business operations. Maybe you've hired more staff, expanded to new locations, or started offering different services. All of these changes affect your insurance needs.
   The solution: Consider scheduling an annual insurance review with your broker. Significant business changes—such as acquiring new equipment, hiring employees, or expanding your premises—may warrant an immediate policy review to ensure your coverage remains appropriate.
   

4. Choosing Price Over Coverage

   We get it—insurance premiums can feel like a big expense, especially when you're watching every dollar.
   The problem: The cheapest policy often provides the least protection. Exclusions, higher excesses, and lower coverage limits can leave you vulnerable when you need support most.
   The solution: When comparing policies, it's worth considering value alongside price. An experienced insurance broker can help you understand the differences between policies and find an appropriate balance between cost and coverage for your circumstances.
   

5. Going Without Professional Advice

   In the age of online quotes and comparison websites, it's easy to think you can handle business insurance on your own.
   The problem: Insurance policies are complex legal documents. What looks like comprehensive coverage might have exclusions that leave you exposed. Without expert guidance, you might not understand what you're actually buying.
   The solution: Consider working with an experienced insurance broker who understands your industry. Licensed brokers can help explain policy details and options in clear terms, making it easier to understand what coverage may be suitable for your business needs.
   

Protect Your Business the Right Way

Your business deserves protection that actually works when you need it. Since 1982, Remingtons Insurance Brokers has helped Australian businesses across Victoria, Queensland, and Tasmania find the right insurance solutions. Whether you're in Bundaberg, Brisbane, Melbourne, or anywhere else in Australia, our team can help you avoid these common mistakes and build a solid insurance foundation for your business.

Ready to review your business insurance? Contact Remingtons today for a no-obligation quote. Call us on 1300 137 175 or visit www.remingtons.com.au to get started.