Review Your Risks To Revive and Survive

Your business has achieved consistent growth, a great reputation and an established position in its selected market. But are you equipped to continue this success in an environment that continues to get tougher for the small business owner? As your business has grown, your risks have increased. Has your business insurance need grown too?

According to Cameron research*, most small business owners just keep buying the same amount of insurance they bought the previous year. They do this without considering all the changes that have occurred in the market and to their business. This leads to a serious problem currently facing small business owners - underinsurance - with many unaware that their cover is insufficient until they unfortunately have to lodge a claim.

Small business owners have to consider: how would a major loss impact your business during a busy trading period such as Christmas or Easter, when some businesses typically have more stock on hand, higher sales and increased costs like staff wages?

Take some time and consider your turnover and expenses. How would you preserve your profits in a situation where your business could no longer trade following a major calamity? What would be the effect on your business if couldn't operate for an extended period of time?

Sadly, many businesses without adequate cover do not survive a major loss.

You should regularly review and reassess your business insurance needs, and explore all risk areas. Reviews can be conducted through independent assessors and quantity surveyors who will determine the total current replacement cost of your business, including the physical structures, fit-out, machinery, stock and even the carpark.

Many small businesses don't realise just how much the costs of building materials and labour have increased, and are forgetting to allow for factors like removal of debris, government zoning and engineering fees.

For business owners to protect the future of their business, it is essential to:

- understand what is truly at stake in the event of any loss or interruption to your business
- know what your insurance policy covers, and
- be aware of changes to your business or situation and act on them.

Important note:
* Cameron Research Group 'The Australian Small Business Market for Financial Services 2008: Insurance and the Small Business Market' June 2008.

Ted Brumby has a successful business, but it was not like that from the beginning. In the past Ted has faced many non-business issues which have cost his business such as fire and theft. What he learned with everything, is that precautions, such as having small business insurance can make a big difference when you are in trouble. Ted is also an expert about all types of insurance and ensures that a good start is a public liability insurance online quote, to analyse and make the choice that fits each business better.