Rising Insurance Premiums Challenge NSW Businesses

The survey highlighted that nearly 80% of businesses experienced double-digit premium increases over the past year, with one in three facing hikes exceeding 30%. Such substantial increases place significant financial strain on businesses, forcing many to either absorb the costs or reduce coverage, thereby increasing their vulnerability to unforeseen events.

Daniel Hunter, CEO of Business NSW, emphasized the disproportionate burden placed on businesses due to the state's emergency services levy and stamp duty on insurance. He called for immediate action from both state and federal governments to alleviate these pressures and support the business community.

For restaurant and café owners, these rising premiums present several challenges:

• Financial Strain: Increased insurance costs can significantly impact operating budgets, especially for small to medium-sized enterprises.
• Risk of Underinsurance: To manage costs, some businesses may opt for reduced coverage, leaving them exposed to potential losses that could jeopardize their operations.
• Need for Advocacy: Engaging with industry associations and advocating for policy reforms can help address systemic issues contributing to rising premiums.

In response to these challenges, Business NSW is advocating for the removal of the emergency services levy and a review of the taxation system related to insurance. Such reforms aim to create a more equitable and sustainable insurance landscape for businesses across New South Wales.