Pet business insurance protects you against unforeseen circumstances, such as property damage and liability claims. However, a widespread risk for Aussie businesses is under-insurance.

According to Peter Vickers Business Group, 70-80% of Australian businesses are under-insured, while approximately a quarter of SME businesses have no insurance at all.

What’s more, it appears sole traders are the most likely group to be under-insured with around 40% having no insurance policy in place. So, when it comes to pet business insurance, why is non-insurance so commonplace? Furthermore, how can you avoid being under-insured?

Why avoid pet business insurance?

Given there are many reasons to take out pet business insurance, you may be wondering why so many businesses fail to take out cover—or perhaps you own one such business. The Insurance Council of Australia reports that affordability is a significant reason why people fail to take out insurance.

However, Peter Vickers Business Group makes a useful point. It states, ‘Some 81% of small and medium-sized businesses admit that an unforeseen business disruption would have a severe impact on their business, yet only 27% have Business Interruption insurance.’

Indeed, so why it is that so many businesses don’t have insurance?

Well, sometimes it’s a case of denial. Business owners don’t believe they will be hit with a liability or workers comp claim. They can’t envisage that anything could happen that would prevent them from operating. The problem is that sometimes the unexpected happens—and this is when you wish you had pet business insurance.

The other barrier is not all businesses recognise their insurance needs. This can lead to non-insurance or under-insurance. Certainly, as a small business, you may feel your risks are small, but in fact, the opposite can be true. A small business can face big risks and hefty lawsuits, in the same way a large business can.

The risks of under-insurance

When it comes to pet business insurance, it’s important to understand the risks of under-insurance. After all, it seems being under-insured is a fairly common occurrence amongst Aussie businesses. Here are a few key factors to consider:

  • Typically, it’s not until something goes wrong, and a claim is made, that businesses discover they are under-insured.
  • Many business owners fail to take into consideration the fact their under-insurance issue can have ramifications for their clients.
  • Successful businesses can become complacent. When things are going extremely well, it can be difficult to imagine (and plan for) the worse.
  • Businesses often forget that as they grow, their insurance needs can change.

Certainly, not understanding the true value of your business, as well as your business needs, is a major reason why businesses are under-insured.

How to avoid being under-insured

When taking out pet business insurance, it’s essential to ensure you have not only the right type of insurance but also the correct level of cover. If you want to avoid the problems that go hand in hand with being under-insured, here are a few tips to think about.

  • Read up on the most common liability incidents and compensation claims and consider how many of these could potentially apply to your business.
  • When was the last time you reviewed your insurance policy? Remember that businesses grow and change—your insurance policy should change in line with your business.
  • Think about insuring the rebuilding value of your business, not just the market value.
  • Many businesses only think about their tangible assets when taking out insurance. Yet, it’s important to consider intangible assets too, like the reputation of your pet business, trademarks and copyright.
  • Did you seek professional advice before buying pet business insurance? In the case of insurance, it does pay to obtain advice from a reputable source.
  • Be proactive by regularly assessing the cost to run your business and considering what would happen if you needed to make a claim or a claim was made against your business.

Information sources:

Peter Vickers Business Group. 70-80% of Aussie Businesses are under0insured. 2017. Accessed online Dec 2020 via

Insurance Council of Australia. Reports: Non-insurance. Accessed online Dec 2020 via:

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Liz has a passion for all things cat and dog, and was one of the first in Australia to bring Pet Insurance to the market. She has headed up Petsecure for the past 12 years, and is committed to promoting and supporting the amazing work done by rescue groups around Australia, and those who work to promote a better life for all animals.

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