Farm Insurance :: Articles

The 5 most common Business Insurance mistakes

What are the most common mistakes business owners make with insurance?

The 5  most common Business Insurance mistakes

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Looking over your insurance premiums each year, you may be wondering how you could save a dollar or two on your next premium. As an intangible asset, it can be difficult to put a value on insurance ... until something goes wrong and you need to claim. In this article, we highlight the five most common mistakes that business owners make when evaluating their insurance requirements:

Not understanding your full Risk Profile

When reviewing your insurance needs, it's essential to sit down and determine what types of events could occur in your business that would create adverse impact. From there, you need to determine what would have the biggest business impact - in terms of dollars, time and effort. Then you need to work out how to ensure that you are adequately covered against these risks.
Often policy holders will do away with one part of a policy thinking that they can save money. For example, they will go for theft, fire and glass coverage, but not take out burglary even though it's a relatively minor additional fee.
Business Insurance
Image for Business InsuranceIf you're in the process of buying or renewing your business insurance, whether it be a factory, a shop, office, warehouse, a farm or whatever .. even a home-based business, we can show you a quick way through the maze of offers and options available on the market. Our Australia-wide broker panel will ensure that you get the best cover for your specific needs … and at the right price to suit your budget.
It is Murphy's Law that the one thing you leave out is the one thing you need to claim for on your insurance. And it can be for the most oddest of items. The strangest story I've heard of is a fish and chip shop that was robbed of all their frozen fish. Although it was never proven, it was suspected that a competitor fish and chip shop, just around the corner, decided that they wanted a freezer full of product to sell without the set up costs!

Not disclosing everything!

Yes, it is true ... if you don't disclose everything upfront when you sign up your insurance policy, the insurance company is quite within their rights to not pay out on your claim. Worst still, they won't even refund your premium paid to date. Therefore, don't hold back. Disclose anything relevant to your insurance upfront to save any drama's at a later date.

Insuring assets at written down value instead of replacement value.

It is essential that you insure your assets for REPLACEMENT value. In other words, how much would it cost you to repurchase the items insured at full price. A common mistake, particularly when purchasing an existing business, is to insure the assets at the "written down" (or depreciated) value, rather than replacement cost.

Being "cheap" on your premium

Don't get caught out by trying to save yourself a few hundred dollars on your insurance premium, to the detriment of being fully insured. Being cheap now could end up costing you thousands of dollars down the track.

Not listening to your Insurance Broker

Your insurance broker is the best person to advise you on insurance cover. Having seen many similar businesses to yours, they have seen other business owners go through the pain that you don't need to. Your insurance broker will know what works for your type of business and how to get it for the cheapest possible price. As an insurance agent, they know the ropes and can maneuver you through the subtleties in insurance policies which will save you dollars in the long term.
It's a quick, efficient and cheap way to grow your profits immediately!

Published: Sunday, 1st Aug 2021
Author: 62


Insurance News

Urgent Call for Enhanced Farm Safety Amid Rising Fatalities
Urgent Call for Enhanced Farm Safety Amid Rising Fatalities
29 Oct 2025: Paige Estritori
In 2024, Australian agriculture faced a significant safety crisis, recording 72 farm-related fatalities—the highest in over two decades. This alarming statistic underscores the urgent need for enhanced safety protocols and awareness within the farming community. - read more
Soaring Insurance Costs Challenge Australian Farmers
Soaring Insurance Costs Challenge Australian Farmers
29 Oct 2025: Paige Estritori
Australian farmers are confronting a significant surge in insurance premiums, a trend largely attributed to the increasing frequency and severity of extreme weather events. Over the past few years, many farmers have reported that their insurance bills have more than doubled, with annual premiums exceeding $100,000. - read more
Revolutionising Crop Insurance with Satellite Technology
Revolutionising Crop Insurance with Satellite Technology
29 Oct 2025: Paige Estritori
In a significant advancement for Australian agriculture, Insurance Facilitators (IF), a family-owned underwriting agency, has introduced a data-driven crop insurance solution leveraging satellite technology. This innovative approach aims to address longstanding challenges in the industry, including premium leakage and risk accumulation, by providing more accurate and efficient risk assessments. - read more
WFI and AgCarE Join Forces to Reward Sustainable Farming Practices
WFI and AgCarE Join Forces to Reward Sustainable Farming Practices
21 Oct 2025: Paige Estritori
In a significant move towards promoting sustainable agriculture, WFI Insurance has partnered with AgCarE, a certification program developed by AgForce, to offer premium reductions to farmers who achieve AgCarE certification. This collaboration aims to enhance financial, environmental, and social outcomes for Australian farmers and rural communities. - read more
Rising Insurance Costs Challenge Australian Farmers as Extreme Weather Intensifies
Rising Insurance Costs Challenge Australian Farmers as Extreme Weather Intensifies
21 Oct 2025: Paige Estritori
Australian farmers are confronting a significant surge in insurance premiums, a trend largely attributed to the increasing frequency and severity of extreme weather events. Over the past few years, many farmers have reported that their insurance bills have more than doubled, with annual premiums exceeding $100,000. - read more
Diversifying Small Farms Open New Avenues for Insurance Brokers
Diversifying Small Farms Open New Avenues for Insurance Brokers
21 Oct 2025: Paige Estritori
The landscape of Australian agriculture is evolving as small commercial farms increasingly diversify their operations to enhance income and sustainability. This shift presents both challenges and opportunities for insurance brokers, as new ventures introduce complex risk management needs. - read more

Farm Insurance Articles

How to Choose the Right Farm Insurance Policy for Your Needs
How to Choose the Right Farm Insurance Policy for Your Needs
Farm insurance is a type of coverage designed specifically for the unique risks and operations involved in farming. It encompasses protection for farm dwellings, equipment, livestock, and crops, offering a tailored approach that reflects the diverse needs of farm owners. This coverage can help safeguard your livelihood against unforeseen events that could disrupt farm operations or result in significant financial losses. - read more
The Farmer's Handbook to Quick and Effective Insurance Claims
The Farmer's Handbook to Quick and Effective Insurance Claims
Insurance is a vital part of safeguarding any farming operation. As a farmer, protecting your property, equipment, and livelihood from unexpected events like natural disasters, theft, or accidents is crucial. Adequate insurance coverage ensures that you can recover quickly from setbacks without enduring overwhelming financial strain. - read more
Preparing for the Worst: Developing a Comprehensive Disaster Response Plan for Your Farm
Preparing for the Worst: Developing a Comprehensive Disaster Response Plan for Your Farm
As a farmer, you know that unexpected events can have a significant impact on your farm and your livelihood. Natural disasters, such as floods, fires, droughts, and storms, can occur at any time and have devastating consequences. That's why it's crucial to have a comprehensive disaster response plan in place to protect your property, assets, and, most importantly, your loved ones and livestock. - read more
Is Your Farm Under-Insured? Tips for Assessing Bushfire Insurance Adequacy
Is Your Farm Under-Insured? Tips for Assessing Bushfire Insurance Adequacy
The threat of bushfires looms large over the vast expanses of rural Australia, shaping the reality of farming in this sunbaked landscape. The risk, always present, escalates as the climate warms and dry conditions persist. It's not a matter of if, but when the land will be tested by fire's wrath. In this environment, the armor of insurance isn't just recommended; it's critical for survival. - read more
How to Save Money on Your Farming Insurance Premiums
How to Save Money on Your Farming Insurance Premiums
When looking for farming insurance, it is important to shop around for the best deals. Don't simply rely on the first insurance company that you come across. Take the time to research various companies and their policies. Compare them based on their coverage, premiums, and deductibles. - read more
Common Myths About Farm Insurance Debunked
Common Myths About Farm Insurance Debunked
Whether you're a seasoned farmer or just starting out, understanding farm insurance is crucial. It's more than just a safety net; it's a way to ensure that your farming business can withstand unforeseen challenges. By safeguarding your livelihood, farm insurance offers peace of mind amidst uncertainties. - read more

Need a Quote?
Start your free farm insurance quote comparison here.
Farm Type:
Postcode:
All quotes are provided free and without obligation. We respect your privacy.

Knowledgebase
Replacement Cost:
The amount it would cost to replace or rebuild an insured asset with one of similar kind and quality, without depreciation.