1300 268 371
 1300 268 371

Protecting Your SME from Real-World Risk Events

Running a small or mid-sized business in Australia means juggling costs, staffing, and cash flow. All that is before unexpected challenges arise.

Whether it’s a natural disaster, a sudden transport incident, or a cyberattack, a single unforeseen event can disrupt your entire operation.

While you can’t predict every risk, you can put plans in place to minimise their impact. Comprehensive insurance is a cornerstone of that preparation.

A Costly Reminder on the M1

In May this year, a truck travelling on the M1 in New South Wales lost its load, scattering sharp metal debris over a 25-kilometre stretch and resulting in over 600 insurance claims. The total damage bill exceeded $2 million.

This incident highlights how quickly things can go wrong on the road. A driver was subsequently charged with spilling 840kg of metal shards that led to more than 300 vehicles being damaged and the M1 being closed for several hours. The company responsible, NJ Ashton Group now faces a hefty repair bill.

For businesses that own or depend on vehicles, such as across logistics, construction, or mobile trades, it’s crucial to understand exactly what your motor insurance covers, and where exclusions might apply.

Floods are Now a Regular Business Challenge

What were once considered ‘once-in-a-generation’ floods now seem to strike with increasing frequency.

Early 2025 brought severe flooding to the Mid-North Coast and Hunter regions, leading to more than 6,000 insurance claims. That prompted the Insurance Council of Australia (ICA) to declare an ‘insurance catastrophe’.

For businesses in construction, agriculture, and beyond, these events are a stark reminder that property damage is only part of the risk. Business interruption insurance is just as important, as floods can stop operations, delay projects, and impact revenue for weeks or months.

Cyber Threats: The Hidden Risk for SMEs

Physical disasters aren’t the only risk to catch businesses off guard. Cybersecurity incidents are rising, with Australian SMEs increasingly targeted by cybercriminals.

Despite growing awareness, many businesses have yet to implement even basic cybersecurity measures. Attacks like phishing and ransomware can lead to significant financial losses and reputational damage.

A single compromised email account can disrupt operations, and breaches involving customer data can have severe legal and commercial consequences.

For further guidance on cyber risks, visit the Australian Cyber Security Centre.

Coastal Properties: Facing the Impact of Climate Change

For those with commercial properties or holiday rentals on the Australian coast, increased insurance premiums are becoming the norm. This is driven by insurers identifying coastal regions as higher risk, thanks to more frequent storms, coastal erosion, and rising sea levels.

These changes are already affecting property values and may determine whether some locations remain insurable in the long term. Insurers are increasingly considering climate projections, not just historical flood zones, when assessing risk.

For ongoing updates on major events, check out the ICA’s ‘current catastrophes’ page.

What Does This Mean for Your Business?

The key takeaway: unexpected events are becoming more frequent, and their impact can be far-reaching. Australian businesses are facing a wider range of risks than ever before, from weather extremes to digital threats.

To stay protected, these are ways a broker or adviser can guide you:

The goal is to ensure your insurance keeps pace with the realities your business faces.

While no business is immune to risk, having the right insurance strategy means you can recover faster and keep moving forward when the unexpected happens. Contact BICS today.