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Businesses warned: It's not the time to gambleSmall businesses in Australia have been warned against cutting back on their insurance cover because of the economic recession. National Insurance Brokers Association (NIBA) Chief Executive Noel Pettersen said today that small businesses are sometimes tempted to cut back their investment in insurance when the going gets tough, but that could leave them exposed to the threat of ruin if the business is affected by an accident, natural catastrophe or crime. NIBA members handle up to 90% of the commercial insurance transacted in Australia. “We realise that businesses of all sizes will be looking at ways they can cut back on costs during the economic slowdown,” Mr Pettersen said. “They should seek advice from their insurance brokers about the best way to ensure they maintain adequate cover and security". "He said that simply cutting back on cover “is a gamble that isn’t worth taking”. “Insurance is there to protect the business and individuals against many kinds of losses,” Mr Pettersen said. “As the business cycle turns down, the likelihood of something serious happening doesn’t go away. “Because companies will be trying to work out ways to do the same amount of work with fewer employees, they can inadvertently increase the risks of liability, injury, damage and loss. This isn’t the time to be pulling back on insurance.” Mr Pettersen said insurance brokers are aware of the pressures on their clients, and will do all they can to assist and advise. ENDS For further information contact Noel Pettersen on 02 9459 4300 NIBA is an independent industry association representing 500 firms and more than 2600 intermediaries, who handle almost 90% of the commercial insurance transacted in Australia. Brokers play a major role in insurance distribution, handling $10 billion in premiums annually and placing around half of Australia’s total insurance business. |
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