As a help company NRMA Insurance is dedicated to helping small businesses navigate the complex world of insurance. With NRMA’s deep expertise as trusted insurance professionals, this article outlines the importance of having the right cover as well as various types of business insurance available
Is your business protected?
As we settle into 2025, it’s the perfect time to review your business insurance and ensure you have the right coverage to protect the business you’ve worked so hard to build. Many small business owners view insurance as just another cost or an annoying task.
However, statistics reveal a significant gap — around 12.8% of small to medium-sized enterprises in Australia lack proper insurance, with sole traders and home-based ventures reaching non-insurance rates of 24% and 21.4% respectively. (Report by the Insurance Council of Australia)
Why business insurance matters
Running a business comes with inherent risks — whether it’s a customer slip in your shop, an accident involving your delivery vehicle, or storm damage to your inventory. Without adequate coverage, such incidents can have a devastating financial impact.
Just as you wouldn’t drive your car without insurance, operating your business without proper protection leaves you exposed to unexpected consequences. The right insurance policies can act as a safety net, giving you peace of mind and the freedom to focus on growing your business and enjoying the life you’ve envisioned.
Understanding different types of business insurance cover
For Australian small businesses, securing the right mix of insurance is essential, as many mistakenly assume that public liability alone will cover all their risks. In reality, a broader range of covers may be necessary.
Here’s an overview of the key insurance types to consider:
- Professional Indemnity: This protection is designed to cover businesses that give advice or provide a professional service, like consultants or other professionals.
It covers businesses for their civil liability from providing professional services, like advice, which causes certain types of loss or damage (like financial loss) to their clients. - Property: Covers the loss or damage to your business premises, business contents or stock in trade caused by fire, storm, burst pipes, impact and more.
- Business Interruption: Helps cover loss of profits after your business suffers damage due to an insured event (like a fire or storm) forces your business to close for rebuilding or repairs
- Commercial Motor Vehicle: Offers protection for vehicles used in your business, covering accidental damage, fire and theft, with different cover levels available
Making the right choice
The optimal insurance mix depends on your industry, business size, location, and specific risks. Taking the time to assess your needs is essential — too little insurance can be catastrophic. Consulting with professionals such as accountants, financial advisors, solicitors, and insurance brokers can help tailor coverage to your unique needs.
Time to take action
Don’t wait, start 2025 with a reassessment of your business insurance needs. Our partners, NRMA Insurance ready to help you with cover options that you can mix and match as your business grows. Visit NRMA Business Insurance or contact them on 132 818
This is general advice only and does not take into account your individual objectives, financial situation or needs (“your personal circumstances”). Before using this advice to decide whether to purchase a product, you should consider your personal circumstances and the relevant Product Disclosure Statement. Product Disclosure Statement and Target Market Determinations available from nrma.com.au. Insurance issued by Insurance Australia Limited ABN 11 000 016 722 AFSL 227681 trading as NRMA Insurance.
Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.
