The Annual Risk Health Check: Why Every SME Needs It
Your business can change a lot in a year – expanding, shifting online, hiring staff, or upgrading equipment.
This year, cyber risks overtook storms and fire as the top concern for SMEs, according to industry research.
More than 70% of SMEs see cyber security as a major business threat, yet half spend less than $500 a year on prevention tools. But software and staff training aren’t enough. That’s where insurance becomes critical. The Australian Cyber Security Centre continues to report rising incidents of ransomware, phishing, and scams. The average cyber incident costs small businesses over $50,000, not including reputational damage, legal claims, or lost revenue.
Cyber insurance won’t prevent an attack, but it can cover expert response, customer notification, and business interruption. Without it, even a minor breach can lead to a major fallout.
What Your Annual Risk Health Check Should Include
Your broker or adviser can walk you through a tailored review of risk management.
This includes:
- Checking that your sums insured for buildings, equipment, stock, and digital infrastructure reflect today’s rebuild or replacement costs
- Ensuring cover accounts for new risks, such as like cybercrime, remote work, or leased assets
- Reviewing exclusions, especially if you’ve added new products, services, suppliers, or sales channels
- Monitoring legal obligations and regulatory changes that could affect liability
The Cost of Inaction
Three out of four SMEs that change how they operate don’t update their insurance.
Last summer, one in six Australian households was affected by property damage. For businesses, disaster recovery costs can escalate fast, and underinsurance compounds the damage. Insufficient cover can lead to long claim delays, extended downtime, lost customer trust, and financial stress. And when gaps are only found at claim time, the consequences can be devastating.
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