Do you know what the 5 most common SME business claims are?

Small business owners know they need insurance to protect their business from unexpected events, but may not understand what sorts of claims they’re most likely to make, or how much they might cost. So what are the top risks to small businesses?

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.

With this information, we have developed a short video highlighting the top 5 most common claims as a way to help inform small business owners. Feel free to send this to your clients or use it when you meet with them to start talking about various coverages they need for their business.

To compliment the top 5 most common claims, below are some tips on how your small business clients could minimise these incidents occurring to them.
 Preventing the top 5 most common claims

There are several simple steps small businesses can take to prevent the top 5 most common claims from happening to them. Below are some tips on how your clients could minimise some of the most common claims.

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 (Property Damage)
  • Put systems in place to ensure you handle clients’ property with care and diligence, training employees on these systems
For more information about CGU’s business insurance offering or how CGU can help you and your clients, please contact your Business Relationship Manager.

*Business Pack exclude Motor and Workers Compensation claims.