20 Mar Small business insurance trends 2025
Insurance is often a must-have when you’re running your own show. Whatever the nature of your enterprise, insurance is there to help you bounce back after an accident or incident.
Understanding the trends that are affecting the insurance market can help you with your broker select the type and level of cover that’s right for your small business.
QIB Group CEO Tim Mathieson outlines some of the insurance trends you need to be across in 2025.
Broader cover, higher excesses
Australia is known as the land of fire and flooding rain. The increasing frequency and severity of natural disasters is prompting small businesses to review their climate risk related policies and, in many instances, extend their cover. That can be an expensive affair, which is why many owners are mitigating the cost of by opting for higher excesses on their various policies.
“If affordability is a challenge, this approach can help you manage the impost while remaining covered for existing and new risks,” Mathieson says.
Seeing cyber as an existential threat
While they may not result in actual property damage, cyber events can be every bit as disruptive and expensive as natural disasters.
The average cost of a small business cyber-crime incident is now $49,600, according to the Australian Signals Directorate’s Annual Cyber Threat Report 2023-2024. And the risk of falling victim has never been higher.
Business owners have become alive to the threat and are increasingly willing to mitigate it with cyber cover.
“Traditionally this cohort would be more concerned about the threat of a fire insurance claim to their property, but they now perceive cyber-crime as a far more likely occurrence,” Mathieson says.
Banding together to access better cover
Climate change is making it harder for small businesses situated in high-risk areas to gain access to cost effective cover, with those in parts of northern Australia particularly hard hit.
Banding together to seek better prices and conditions can help them gain access to the protection they require.
“Expect to see more businesses looking for alternative ways to manage this risk,” Mathieson predicts.
Seeking expert advice
No two small businesses are the same and nor are their respective risk profiles. An experienced insurance broker can help you identify the vulnerabilities and emerging risks yours faces.
“It’s crucial to stay informed and to work with a professional to develop tailored risk management solutions beyond just insurance,” Mathieson says.
Drawing on the expertise of a broker who is familiar with your industry can help you get a handle on your evolving risk profile, and a growing number of Australian SMEs are seeking out this specialist assistance.
“Find someone who specialises in your industry
or occupation and who can understand what
you’re up to from day to day in your business,”
Mathieson advises.
Cover when it counts
The right insurance cover can help to protect your small business from a range of adverse incidents and events. A broker can help you determine what type and level of cover will best meet your needs. If you’d like to review your current policies or chat about your requirements, contact your Steadfast broker today.
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This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.
Information is current as at the date the article is written as specified within it but is subject to change. Watkins Insurance Brokers Pty Ltd make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of Steadfast Group Limited.
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Source: – https://www.steadfast.com.au/well-covered/business-insurance/small-business-insurance-trends-2025/