Is Your Business Truly Protected?
Running a small business comes with its fair share of challenges and uncertainties. While most business owners have some form of insurance, many might not realise they’re underinsured until it’s too late.
Underinsurance can leave your business vulnerable when unexpected events occur, potentially leading to significant financial strain or even closure. So, how do you know if your business is truly protected?
At RSM Tasmania we provide the small business insurance Tasmania needs to ensure that protection is exactly what you need.
What is Underinsurance?
Underinsurance happens when your insurance coverage isn’t sufficient to cover the full cost of a loss. This could be due to undervaluing your assets, not accounting for all potential risks, or failing to update your policies as your business grows and evolves. It’s like having an umbrella that’s too small during a heavy downpour – it offers some protection but leaves you exposed to getting soaked.
Sadly, one in every ten Australian businesses that already have insurance in place do not have sufficient cover for business disruption, legal liability or loss and damage to assets.
Common Causes of Underinsurance
Outdated Asset Valuations
Businesses often forget to update their insurance policies to reflect current asset values. Over time, the cost to replace equipment, inventory, or property can increase, leaving a gap between your coverage and actual replacement costs.
Business Growth and Changes
As your business expands, adds new services, or enters new markets, your risk profile changes. Without updating your insurance to match these developments, you may find yourself inadequately covered.
Overlooking Specific Risks
Some businesses neglect to consider all potential risks, such as natural disasters, cyber threats, or legal liabilities. This oversight can result in significant financial losses if unexpected events occur.
Why Proper Coverage Matters
Imagine investing years of hard work into building your business, only to have a single unforeseen event threaten its survival. Adequate insurance ensures that when challenges arise – whether it’s a fire, theft, or liability claim – your business has the support needed to recover quickly and continue operating smoothly.
How to Ensure You’re Properly Covered
Regular Policy Reviews
Schedule annual reviews of your insurance policies to ensure they align with your current business operations and asset values.
Comprehensive Risk Assessment
Identify all potential risks specific to your industry and location. This includes considering scenarios like natural disasters, equipment breakdowns, and legal disputes.
Consult with Experts
Insurance can be complex, and navigating it alone may lead to oversights. Working with professionals can help tailor coverage to your unique needs.
We’re Here to Help
At RSM Tasmania, we understand the intricacies of protecting your business. To help you feel confident about your coverage, we’re offering a complimentary insurance checkup. Our team will assess your current policies, identify any gaps, and provide recommendations to ensure your business is fully protected against life’s unexpected moments.
Don’t let underinsurance put your hard-earned business at risk. Take proactive steps today to safeguard your future and gain peace of mind knowing you’re adequately covered.
Ready for your free insurance check-up?
Talk to Roger Hosie and stay ahead with RSM Tasmania’s insights.
Call Now! (03) 6244 7854, or email .
Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs. For advice tailored to your circumstances, have a chat with us at RSM Tasmania Insurance Brokers Hobart.
