Small Business Spotlight: Coverage Considerations for Real Businesses

Running a business in Australia involves navigating a range of operational risks, including potential liability exposures. The Australian insurance market is assessed to grow at a CAGR of 1.80% between 2025 and 2034, reflecting increasing awareness among Australian businesses regarding comprehensive protection needs. 

The value of flexible business insurance options

Every business has distinct characteristics. Factors like industry, size, location, and service model can influence the type of insurance that may be appropriate. Brokers often assist clients by exploring policy features from multiple insurers to identify suitable options. 

How Australian small businesses customise coverage

While many providers offer standard packages, some businesses explore options for tailoring their coverage to better reflect their size, assets, and risk profile. 

The following 2 case studies reflect considerations that may apply to other small businesses operating in similar environments. 

Case Study 1

Business Profile: A business owner runs a boutique café in Melbourne's inner suburbs, employing six part-time staff and serving approximately 200 customers daily. 

Initial Challenge: Standard hospitality insurance packages were designed with larger venues in mind- such as those with commercial-grade kitchens and bulk food storage. For this café, certain aspects of those packages did not reflect its scale or operations. However, customer foot traffic, exposure to weather elements in outdoor areas, and reliance on specialty coffee equipment introduced other considerations. 

Customised Solution: 

In consultation with a broker, the business considered the following options, which were selected from available policies based on relevance to the business’s operations.   

• Public liability coverage specifically addressing slip-and-fall incidents in the café's compact layout 

• Equipment breakdown protection for her expensive espresso machines and coffee roasters 

• Business interruption coverage calculated based on her actual daily revenue patterns 

• Food poisoning coverage appropriate for her menu size and customer volume 

• Cyber liability protection for her point-of-sale systems and customer data 

This example highlights how insurance cover can be adapted to reflect specific operational conditions without including unrelated features.    

Case study 2

Business Profile: A solo consultant runs a digital marketing business from a home office, supporting clients located across Australia and New Zealand. The business primarily delivers services online, ranging from strategy development to campaign execution. 

Initial Challenge: Standard insurance products often prioritise physical business premises or in-person operations. In this instance, the consultancy’s digital nature meant traditional property-focused policies weren’t well aligned. Key concerns included exposure to professional liability, cyber risk, and disputes related to intellectual property or service agreements. 

Customised Solution: 

In consultation with a broker, the business reviewed cover options suited to its digital operations and remote working environment: 

• Professional indemnity coverage for marketing advice and campaign management 

• Cyber liability protection covering both his business data and client information 

• Home office contents coverage for his computer equipment and software 

• Business interruption protection based on his project-based income model 

• Legal expenses coverage for contract disputes 

This case highlights how businesses operating in non-traditional or digital environments may require different insurance considerations than those with a physical retail or office footprint. 

Considerations when reviewing your cover options

• Map your risks: Think about property, liability, digital operations, and supply chains. 

• Know your industry: Some covers are common within certain professions. 

• Reflect on your operations: Where you work, how you work, and who you serve can all influence your cover needs. 

• Plan for growth: Consider whether your cover options scale with your business. 

• Review regularly: Reassess your coverage as your business evolves. 

 

Want to explore insurance options that reflect your business? Contact us to speak with one of our expert brokers.      

Disclaimer:

The information provided is intended for general informational purposes only and does not constitute professional advice. While every effort has been made to ensure the accuracy and completeness of the information contained herein, Add Insure makes no guarantees or warranties regarding its applicability to your specific situation. 

Insurance needs and requirements can vary significantly depending on individual circumstances, local regulations, and business operations. We recommend consulting with a qualified insurance professional or broker to obtain advice tailored to your needs and circumstances. 

Add Insure shall not be held liable for any errors or omissions in this blog, or for any actions taken based on the information provided. For the most current and accurate guidance, please contact an insurance professional.