Inventory and risk management
Insurance industry research shows that seven out of 10 small businesses don’t recover from major fire, storm or flood. Invariably, this is due to the owners not taking out business interruption insurance.
- It covers small businesses for losses incurred from being unable to operate, e.g., if a water pipe bursts and a retailer loses three days of trade
- Half of Australia’s small businesses have no business interruption insurance
- One in eight small businesses has no liability insurance
- To mitigate against risk, list all potential dangers (e.g., bushfires or cyclones) and investigate whether insurance policies exist to cover them
- Small businesses may also need to consider how importing risks and/or exporting risks impact on their operation.
As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on the advice, consider its appropriateness to your circumstances. View our Financial Services Guide (PDF 59kb).