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Business insurance: not just a safety net but a strategic choice

Last updated on May 8, 2024 
Business insurance isn't just a buffer but a long-term strategic decision. A loss of your productive assets, such as premises, machinery, stock and income may be fatal to the ongoing success of a business. However, with appropriate coverage, businesses can help secure their operations, assets, and financial stability.

The top risks facing Australian business 

In the world of business, one thing stays the same: uncertainty. There are risks and challenges outside of our control. That’s where business insurance comes in. Your trusted insurer helps you deal with the impact of insured events on your finances and frees you up to focus on moving forward.

Every year, we survey thousands of businesses around the world, in various industries, to find out which risks they see as posing the biggest threat to their operations. Our 2024 Risk Barometer report highlights the 10 biggest risks facing businesses in Australia, which are:

  1. Cyber incidents – cybercrime, malware, and ransomware causing system downtime, data breaches, fines, and penalties
  2. Natural catastrophes – such as storm, flood, earthquake, wildfire, and other extreme weather events 
  3. Shortage of skilled workforce 
  4. Business interruption – including supply chain disruption 
  5. Changes in legislation and regulation – such as tariffs, economic sanctions, protectionism, and Euro-zone disintegration 
  6. Macroeconomic developments – including inflation, deflation, monetary policies, and austerity programs 
  7. Climate change – physical, operational, and financial risks resulting from global warming 
  8. Fire, explosion 
  9. New technologies 
  10. Market developments – such as intensified competition and new entrants, mergers and acquisitions, and market stagnation and fluctuation
Responding to this risk-filled climate requires appropriate insurance coverage. It helps businesses secure their operations, assets, and financial stability. You can flexibly deal with new problems that come up by identifying specific risks and adjusting the insurance coverage to fit them.

You can’t afford to be uninsured or underinsured

In a tough and changing risk environment, being uninsured can be costly. Being underinsured can be also. Crisis can strike at any time – whether that’s in the form of a natural disaster, fire, theft, or other insured events. Making sure your business is prepared is important, whatever the risks, in uncertain times. 

Cutting spend on insurance can be tempting but how will your business survive if you can’t replace key assets and lost income? It may be unwise to take the risk of lowering your premiums or cancelling your cover altogether. This is because you may not have the funds to replace any lost or damaged assets or cover the resulting loss of income. 

It’s important to recognise the risks facing your business and make sure it’s covered with the right amount of insurance. There isn’t a one-size-fits all coverage to suit every business, but you can find out more about the cover you need help bounce back financially from unexpected events.

While you can’t control the risks around your businesses, you can get as prepared as possible to look after your investments, your people, and your assets .

Want to find out more about our Business Insurance policies?

Disclaimer

This article has been prepared by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL234708 ("Allianz"). In some cases, information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way.  The decision to insure and for what amount is a matter for your determination. You may wish to seek professional advice on these issues.

Any opinions expressed constitute our views at the time of issue and are subject to change. Neither Allianz, nor its employees or directors give any warranty of accuracy or accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in this article.

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Allianz acknowledges Aboriginal and Torres Strait Islander peoples as the Traditional Custodians of the lands on which we live and work across Australia. We pay our respect to First Nations Elders past and present.



Any advice here does not take into account your individual objectives, financial situation or needs. Terms, conditions, limits, and exclusions apply. Before making a decision about this insurance, consider the relevant Product Disclosure Statement (PDS)/Policy Wording and Supplementary PDS (if applicable). Where applicable, the PDS/Policy Wording, Supplementary PDS and Target Market Determination (TMD) for this insurance are available on this website. We do not provide any form of advice if you call us to enquire about or purchase a product.

Allianz Australia Insurance Limited ABN 15 000 122 850 AFS Licence No. 234708 is the insurer of any general insurance products offered, and Allianz Australia Life Insurance Limited ABN 27 076 033 782 AFS Licence No. 296559 is the insurer of any life insurance products offered. Each entity is responsible for any statements and representations made about its products, on this website.