The majority of Australia's small business owners say they take a jigsaw approach to buying insurance cover: they use an insurance broker for some of the coverage they need and organise some by themselves1. But a jigsaw only has to have one piece missing to fail in providing a full picture. In insurance this tends to show up just when you need it most — when you have to claim.
This is important because typically small businesses don't have the resources to absorb a significant loss. Most small business operators say they wouldn't be able to survive a $10,000+ loss2.
Gaps in insurance cover can occur from having complete coverage one year to the same policies leaving your business exposed to risk when you go to renew them.
In some instances insurers may become reluctant to cover some risk due to a large number of claims for losses — for disaster related damage, for example.
Along with loss-driven changes to insurers' underwriting appetite, policy terms may be subject to change at renewals, removing protection from some types of risks, such as cyber security breaches.
This is when an insurance broker who takes the time to know your business, your industry sector and who understands the risks you face can make a pivotal difference to protecting loss outcomes, in applying a thorough risk assessment approach to your specific exposures and making sure all the pieces fit together.
How risk assessment analysis protects businesses from potential losses
Risk assessment is a holistic exercise that looks at the big picture in terms of potential loss scenarios particular to your operations, business structure, commercial model and management.
An insurance broker can appraise your business risk exposures, including regulatory compliance, managing enforced down time and legal or other types of costs to reduce your business exposures and provide comprehensive no-gaps coverage. This is particularly helpful if your business is in a niche sector and requires some customised protection.
5 reasons why your small business could benefit from using an insurance broker
Some complexities in business insurance requirements make accessing broker expertise especially advantageous. It's worth checking whether the following conditions apply to your business:
- are there regulations you need to comply with in your industry?
- do you need coverage for different types of risks in your business?
- could you be held legally liable for a business mistake?
- are you confident you understand all the terms and conditions in a business insurance policy?
- can you be sure you'll receive a fair payout if you make a claim?
If you aren't 100% certain what different policies will and won't cover and under what circumstances, or if you have to make a claim, then it makes a difference to have an insurance broker on your side.
Other efficiencies using a broker for all your business insurance requirements can provide are related to their professional networks and relationships with insurers and their underwriters. This knowledge gives them the ability to shop around for the coverage your business needs, accessing options that aren't available to self-insurers, and bundling the policies into a single package with the convenience of one renewal date.
In the event of a claim this overview gives them the advantage of knowing exactly what conditions apply and the ability to argue your case with insurers, if required.
Our brokers are specialists in insurance and risk management
Our Gallagher small business specialists can provide small business owners with personalised service, customised cover and support through the claims process.
Our aim is to offer risk management advice and offer the relevant insurance solutions so you can focus on what you do best: running your business with the confidence that you're protected.
We have Gallagher brokers nationally across small to large businesses, in all industries, to provide professional expertise.
Sources
1 SME Insurance Index Insights Illuminated, Vero, accessed 10 Nov 2025.
2 Small business owners have their say on risks, challenges and opportunities in our micro-SME survey, QBE micro SME survey, QBE, 4 Feb 2025.
