5 Most Common Small Business Claims

5 Most Common Small Business Claims

You know you need to protect your small business from the unexpected – but do you know what the most common risks to small businesses are?  

As Australia’s largest business insurer, CGU Insurance knows about the risks small businesses face. We’ve examined our Business Pack* claims data to identify the most common small business claims, and what you can do to prevent them.

Preventing the top 5 most common claims

You can take a few simple steps to prevent the top 5 most common claims from happening to your business. Here are some tips to help you reduce your risk:

1.  Theft & Burglary

  • Install security systems to protect your business against theft and burglary
  • Secure all doors, windows or other access points when the business is unattended, and install adequate lighting in exterior and interior areas to deter trespassers
  • Conduct background checks on employees, and enlist their help in reducing theft
  • Ensure you have a system for tracking and managing inventory

2. Storm Damage



  • Understand the geography of your area, taking into consideration storm damage risks (eg proximity of trees, or elevation for storm water run-off)
  • Trim any overhanging tree branches
  • Check your building is in good condition, particularly the roof, gutters and eaves
  • Secure loose objects that could become missiles in high winds, and anchor outdoor equipment or material
  • Plan your business for the possibility of an extended power outage – including where you would relocate any perishable stock or arrange for Business Interruption cover

3.  Property Damage (Accidental & Malicious)





  • Ensure your business premises is well maintained, and proactively repair any small issues
  • Install security systems to deter vandalism and other malicious damage

4.  Machinery & Equipment breakdown





  • Implement regular proactive checks and maintenance of you machinery and equipment
  • Properly store equipment and machinery, ensuring electrical connections are clear of dust and obstructions
  • Use your equipment in the way it was intended (don’t run at over-capacity or in unfavourable environmental conditions) by experienced and trained operators
  • Don’t ignore warning signals, and replace worn parts

5.  Liability





  • Keep walkways and floors dry and clear of tripping hazards and provide adequate lighting to prevent slips, trips and falls
  • Ensure access to dangerous areas of your business, such as machinery or hazardous materials is strictly restricted
  • Put systems in place to ensure you handle clients’ property with care and diligence, training employees on these systems

For more information about business insurance, visit our Business Pack page, and speak to your insurance adviser to make sure you have the right cover in place.  

*Note: Business Pack excludes Motor and Workers Compensation claims.