Edition 6: Protect Your Livelihood Over the Easter Break

As many small business owners prepare for the Easter break, the reality is that many may not be properly protected from the risks of fire, burglary, vandalism or severe weather over this holiday period.

Gerard McDermott, Executive General Manager of GIO Business Insurance, says it’s alarming that so many small business owners could be underinsured.

“Statistics reveal that a significant percentage of small businesses are not adequately insured,” said Mr McDermott.¹

“Often this is because business owners don’t review their insurance regularly and forget to update their insurer about changes to their business like new premises, vehicles and equipment or even an increase in gross profits when this occurs.

“Around holiday time, some businesses are particularly vulnerable because their premises may be unattended. With the banks closed, some businesses may have higher than normal amounts of cash or they may be forced to take cash home.

“As we’ve seen this year, our climate is unpredictable. Australia is characterised by storms, bushfires and even cyclones in some parts of the country which can pose significant risk to small business owners.”

Mr McDermott says that small business customers can benefit from understanding how to manage their risks.

“You can’t always predict the weather and prevent a disaster striking your business, but you can take control of your risks and minimise the chance of any disruption becoming a disaster.”

“Even simple things like cleaning up your property and removing excess cash and stock before you go on holidays can make a big difference.

“It’s vital that small business owners also make sure that their business insurance is up to date in case they unfortunately have to make a claim.”

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GIO’s top 10 tips for business owners to protect their livelihood at holiday time

1. Minimise the amount of cash and stock held in your business premises on days where it will be unattended.

2. Try to bank as much cash as possible before banks close for the public holidays.

3. If your business is closing down for an extended period over the holidays, try to visit it regularly to collect mail and pamphlets, check for any signs of disturbance and maintain a presence. If you are going on holidays, ask an employee or neighbour to do this for you.

4. Test your security and fire alarms before you go on holidays and double check that all windows and doors have been secured.

5. Let your security company know what your trading hours will be over the Easter break.

6. Review your business insurance and make sure any changes such as new equipment, vehicles or premises are up to date with your insurer. You should make sure your insurance covers the true replacement costs of your business assets, rather than just their value.

7. Clean up your business before you go on holidays - clear out gutters, ensure that loose objects are removed from outdoor areas and take away all rubbish. This will help minimise damage if there is a storm or fire.

8. Unplug all unnecessary electrical appliances to avoid a power surge or even a fire.

9. Restaurants and cafes that are going to open over Easter need to make sure that produce is kept fresh. Do a maintenance check of your equipment and cool rooms to avoid additional stress during this busy period.

10. Consider including business interruption insurance which is designed to cover loss of gross profit or gross rentals if your business was disrupted as a result of an insured event.

Important Information:
The information in this article does not take into account your financial situation, needs or objectives.  Therefore, you should consider whether the information is appropriate for you, and read the applicable policy documents and Product Disclosure Statement before deciding whether to acquire or hold any insurance products.
GIO Business Insurance is issued by GIO General Ltd. ABN 22 002 861 583.
¹ Cameron Research Group 2010 ‘Non-Insurance in the Small to Medium sized Enterprise Sector’ December 2008.