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Business risks come in all shapes and sizes. Some can be internal risks such as employee performance, procedural failure or faulty equipment. Others can be external risks such as economic factors, cyber-attacks, natural disasters or bad debts.

Knowing how to identify and manage risks can help reduce the impact of any unexpected events that your business may face.

At Centrewest insurance brokers, we help our clients assess their unique risks and ways to reduce these.

Here are 10 areas of risk we think all businesses need to consider their exposure to:


The risk of a cyber breach extends far beyond just businesses that run transactional websites. Any business whose operations rely on computer systems to function, who store data of clients, vendors, stakeholders and employees and use email to facilitate business activities are at risk of a cyber-attack. Therefore Cyber insurance is becoming a necessity for almost all businesses rather than a “nice-to-have”.

2. Management liability

With inflationary pressures on the economy and the cost of living on the rise, there is an increased risk of employee theft. Along with this, recent changes to Work Health Safety Laws increases the risk of prosecution for individuals as a result of workplace accidents. Management Liability insurance can protect companies from legal action in response to the improper or careless actions of a company director or officer such as theft, fraud, Work Health & Safety defence costs and Tax audit & review costs.

3. Replacement values of buildings, plant and stock

With substantial increases in labour and material costs over the last two years, now is the time to review your building values, plant & stock and have your insurance policies updated in-line with their current rebuild values. Failure to update your building insurance sums can result in being underinsured.

4. Insurance pricing and capacity

Recent insurance price increases have been largely driven by inflation and climate change events which have increased insurance claims costs overall in Australia and worldwide. As climate-related risks are likely to continue to worsen, it is important for businesses to factor in these increased costs and premiums into their business plans.

5. Business interruption

The COVID-19 pandemic, supply chain issues and building delays are some of the reasons that many businesses have been experiencing interruptions in recent times. It is important to be prepared for business interruptions and consider the relevant insurances to protect against losses. And if you do have Business Interruption Insurance already, it is also important to review your indemnity period, which is the length of time your insurance company is obligated to make payments to cover losses under your policy.  

6. Vehicle and mobile plant replacement

Just like the value of buildings, used & new vehicles and plant costs have increased substantially in recent years. It is important to ensure your vehicles and plants are insured for their current replacement costs. Failure to update the sums insured in-line with current market value could result in being underinsured.  

7. Crisis plan

Insurance losses can be mitigated by having a sound crisis management plan in place. This plan should outline how your business will react if a crisis occurs, who will take action and what their roles will be. The goal of a crisis management plan is to minimise damage and get your business up and running as soon as possible.

8. Succession plan

Life is unpredictable; therefore all businesses owners should consider what would happen to their business if they were incapacitated or passed away unexpectedly. For business partnerships, a surviving partner has to not only pick up the pieces but also find the acquisition of the other partners share of the business. Having a clear succession plan in place including a will and insurances for key personnel will help to alleviate this risk.

9. Natural disasters

As global temperatures continue to rise and extreme weather becomes more likely, it is increasingly important for people to ensure their personal assets and businesses are protected against events such as floods and fires.

10. Your personal insurances

It is important to ensure you have the correct personal insurances in place, including home values, income protection and life insurance. Keyman insurance can also be worth considering if you are in a business partnership. It is too easy to forget the most fundamental personal priorities, so take the time to think about your personal situation. 

For a full risk assessment, contact our team of experienced insurance brokers today.