Up to 60% of homes and 80% of business are either underinsured or uninsured.

Insurance is likely to cost business more this year, but cutting down on cover because of the tight financial conditions is a false economy.

There will be pressure on rates as a result of bush fires together with falling investment returns and other economic forces, including increase in taxes, particularly Fire Services Levies.

Because businesses are endeavoring to perform at least the same amount of work at lesser cost, for example, fewer employees, inadvertently the risks of liability, injury damage and loss are increased.

A study carried out by the Australian Securities and Investment Commission ASIC found that up to 81% consumers were underinsured by 10% or more.

The study found that a major impact on this level of underinsurance was due to the fact that the burden of estimating rebuilding costs rests with the consumer and this burden is ongoing with an example being that whilst the
CPT increased by 17 % between March 2000 and March 2005, building costs actually rose by 33 %.

Unfortunately Government Taxes may constitute up to 50% of your premium
(in NSW). Don’t let this discourage you for adequately insuring.
This alone can force you out of business.

d.i.b brokers can advise you on an appropriate method to adequately insure. Contact us today.