Is your business underinsured?

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After hearing Adam Pinkard's impassioned speech at the Australian Distillery Conference earlier this month about "The impact of fire on and recovery to your business", we thought we'd further emphasise his point on the importance of "underinsurance".

But first, what is underinsurance? Underinsurance happens when you've taken out insufficient insurance to cover the replacement value of your property and its contents when something goes wrong. Being underinsured exposes you to financial hardship or inadequate cash flow when disaster strikes, and it can make all the difference between the success or failure of your business.

 

73% of Australian small-to-medium sized businesses do not have Business Interruption insurance

 

62% of Australian small-to-medium sized businesses are underinsured

 

So, to help you avoid falling victim to the underinsurance trap, we've covered off the most common instances when underinsurance can occur.

Your cover is based on the market value of the building instead of the rebuild cost
For buildings, this means getting a professional valuation for the full cost of rebuilding your property including any outbuildings (sheds, farm buildings, silos, rainwater tanks etc), plus any extra charges that could be involved in rebuilding, such as:

  • the demolition of the entire structure, including removing the floor slab and foundations
  • removal of debris
  • the need to meet updated building codes
  • the potential rise in labour and material costs
  • fees for architects, surveyors, planning experts etc.
  • public authority requirements and the latest building regulations

It's common for these extra charges to generate an additional 15%-20% on top of the pure reconstruction cost.

You've altered, added features or extended the property
Making any alterations, additions or extensions to your business or property can often increase your sum-insured. So, it is essential that you let your broker know of any major pieces of equipment, machinery, or new depots or locations that are taken on or acquired so that they can be added to the policy.

You are carrying more stock now than when you took out your insurance policy
As your business grows, it's more than likely that your stock levels will increase accordingly, so it's fundamental that your broker is updated with the changed stock levels. Ensure your cover reflects the true replacement value of your stock and that your insurance coverage grows with your business.

Business interruption (BI)
Most people understand the need to insure their business assets, such as buildings, contents and motor vehicles. But business interruption insurance is arguably just as important.

Business interruption insurance covers the loss of income due to an unexpected event that forces your business to shut down temporarily. Whether it’s the result of a fire, flood, storm, a pandemic, a machinery breakdown, a tax investigation or even a cyber incident, a business interruption policy can help keep your business running smoothly during a temporary crisis.

Business Interruption insurance is especially recommended for businesses in more complex industries, including those who undertake the handling or storage of dangerous goods (such as ethanol), or those in areas that are prone to severe weather events.

A BI policy can be tailored to cover:

  • loss of sales profit
  • ongoing operating expenses, such as electricity, rent, and staff wages
  • temporary office setup
  • repair or replacement of property that's been damaged
  • training costs for operators or replacement of machinery
  • closure of your business due to government-ordered street closures
  • damage to a neighbouring business which has a negative impact on your business operations

It is critical that you receive good advice, and a good broker will discuss with you that your sum-insured are adequate and that the policy provides good quality cover and, crucially won't leave you underinsured in the event of a claim.

Visit Insurance Council of Australia as a starting point to help accurately track and calculate the cost of your assets.

You may Also read:
Parametric Insurance - Details  and Our Privacy Policy

 

Is your business underinsured?

Is your business underinsured? 

After hearing Adam Pinkard's impassioned speech at the Australian Distillery Conference earlier this month about "The impact of fire on and recovery to your business", we thought we'd further emphasise his point on the importance of "underinsurance".

But first, what is underinsurance? Underinsurance happens when you've taken out insufficient insurance to cover the replacement value of your property and its contents when something goes wrong. Being underinsured exposes you to financial hardship or inadequate cash flow when disaster strikes, and it can make all the difference between the success or failure of your business.

 

73% of Australian small-to-medium sized businesses do not have Business Interruption insurance

 

62% of Australian small-to-medium sized businesses are underinsured

 

So, to help you avoid falling victim to the underinsurance trap, we've covered off the most common instances when underinsurance can occur.

Your cover is based on the market value of the building instead of the rebuild cost
For buildings, this means getting a professional valuation for the full cost of rebuilding your property including any outbuildings (sheds, farm buildings, silos, rainwater tanks etc), plus any extra charges that could be involved in rebuilding, such as:

  • the demolition of the entire structure, including removing the floor slab and foundations
  • removal of debris
  • the need to meet updated building codes
  • the potential rise in labour and material costs
  • fees for architects, surveyors, planning experts etc.
  • public authority requirements and the latest building regulations

It's common for these extra charges to generate an additional 15%-20% on top of the pure reconstruction cost.

You've altered, added features or extended the property
Making any alterations, additions or extensions to your business or property can often increase your sum-insured. So, it is essential that you let your broker know of any major pieces of equipment, machinery, or new depots or locations that are taken on or acquired so that they can be added to the policy.

You are carrying more stock now than when you took out your insurance policy
As your business grows, it's more than likely that your stock levels will increase accordingly, so it's fundamental that your broker is updated with the changed stock levels. Ensure your cover reflects the true replacement value of your stock and that your insurance coverage grows with your business.

Business interruption (BI)
Most people understand the need to insure their business assets, such as buildings, contents and motor vehicles. But business interruption insurance is arguably just as important.

Business interruption insurance covers the loss of income due to an unexpected event that forces your business to shut down temporarily. Whether it’s the result of a fire, flood, storm, a pandemic, a machinery breakdown, a tax investigation or even a cyber incident, a business interruption policy can help keep your business running smoothly during a temporary crisis.

Business Interruption insurance is especially recommended for businesses in more complex industries, including those who undertake the handling or storage of dangerous goods (such as ethanol), or those in areas that are prone to severe weather events.

A BI policy can be tailored to cover:

  • loss of sales profit
  • ongoing operating expenses, such as electricity, rent, and staff wages
  • temporary office setup
  • repair or replacement of property that's been damaged
  • training costs for operators or replacement of machinery
  • closure of your business due to government-ordered street closures
  • damage to a neighbouring business which has a negative impact on your business operations

It is critical that you receive good advice, and a good broker will discuss with you that your sum-insured are adequate and that the policy provides good quality cover and, crucially won't leave you underinsured in the event of a claim.

Visit Insurance Council of Australia as a starting point to help accurately track and calculate the cost of your assets.

You may Also read:
Parametric Insurance - Details  and Our Privacy Policy

 

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Gary Perera

Senior Insurance Broker

With 35 years’ experience in the insurance industry, Gary is a Senior Insurance Broker at Midland with extensive knowledge across a wide range of business sectors. He specialises in insurance for breweries, distilleries, cafés, restaurants, and manufacturing businesses, bringing a depth of practical insight to every client engagement.

Known for his thorough and considered approach, Gary takes the time to understand how each business operates before delivering clear, tailored insurance solutions. A committed professional, he has completed numerous industry qualifications and is a proud member of ANZIIF, maintaining his expertise through ongoing education and regular engagement with industry developments.

Outside of work, Gary is an avid sports enthusiast who enjoys running, football, and cricket. He remains driven by a simple principle: continuous improvement and delivering the highest standard of advice to his clients.

Angus Matheson

Angus Matheson

Senior Insurance Broker

With more than 21 years’ experience in the insurance industry, Angus is a Senior Insurance Broker specialising in Road Freight Transport insurance. He is recognised for his deep understanding of the transport sector and his ability to deliver tailored risk solutions that address the operational and commercial challenges faced by transport businesses.

Angus takes an empathetic, client-first approach, investing the time to understand each business, its priorities, and its risk profile before providing advice. A committed professional, he holds accreditations with NIBA, ANZIIF, CIP, and QPIB, and remains actively engaged with industry developments through ongoing education and professional involvement. His focus is on delivering reliable protection that supports business continuity and long-term confidence.

Sarah Grose

Sarah Grose

Senior Insurance Broker

With more than 17 years’ experience in the insurance industry -including 16 years with Midland - Sarah brings deep expertise and a genuine commitment to helping clients protect what matters most. Having held a range of roles across the business, including management positions, she has a well-rounded understanding of both client needs and the broader insurance landscape.

Sarah specialises in small to medium-sized business insurance, with particular expertise in the film and television sector, self-storage, and, more recently, breweries and distilleries. Her approach is focused on making insurance clear, practical, and tailored to each client’s circumstances. Known for her approachable and solution-focused style, Sarah builds long-term relationships grounded in trust, reliability, and understanding.

She holds a Diploma of Insurance Broking and remains actively engaged in ongoing professional development to ensure her advice stays current and relevant.

Andrew Woff

Andrew Woff

Senior Insurance Broker

With close to 20 years’ experience in the insurance industry, Andrew is a Senior Insurance Broker at Midland specialising in heavy vehicle and equipment insurance, as well as cover for breweries and distilleries. He is particularly well regarded for his ability to secure tailored, cost-effective solutions for assets involving motors, wheels, or tracks, alongside his strong understanding of the risks unique to alcohol production businesses.

Andrew works with a wide range of clients, from sole traders through to large-scale operations, and is known for his clear communication, flexible approach, and commitment to personalised service. A QPIB-accredited broker and member of NIBA, he maintains high professional standards and remains focused on delivering practical, well-considered advice.

Outside the office, Andrew is a proud father of three and an active community volunteer. His interests in music, electronics, mechanics, and brewing reflect the same curiosity and hands-on mindset he brings to his professional work.

Scott McMurtrie

Scott McMurtrie

Senior Insurance Broker

Scott is a Senior Insurance Broker with over 12 years’ experience supporting Australian small and medium-sized businesses. He specialises in tailored insurance solutions across the Film & Entertainment, Transport, and Manufacturing sectors, delivering advice that reflects each client’s specific risks and operations.

With a strong focus on understanding how businesses work in practice, Scott provides clear, relevant cover recommendations backed by ongoing professional development and industry engagement.

Outside the office, he enjoys AFL, soccer, and music, and values building long-term client relationships founded on trust and reliability.

Beau Runnalls

Beau Runnalls

Senior Insurance Broker

Beau is a senior insurance broker at Midland with seven years of industry experience supporting businesses across Australia. He works across a broad range of sectors, with particular expertise in earthmoving, heavy equipment, trades, and the winery industry.

Known for his attention to detail and measured approach, Beau focuses on delivering insurance solutions that are clear, practical, and free from unnecessary complexity. He remains actively engaged in professional development, ensuring his advice reflects current industry standards and best practice.

Beau places strong value on collaboration and long-term client relationships. Outside of work, he enjoys golf and football, reflecting his team-oriented mindset and active approach both professionally and personally.

Alex Petkovic

Alex Petkovic

Senior Insurance Broker  |  Development & Service

With 27 years of experience in the insurance industry, Alex is a senior broker at Midland, recognised for his depth of knowledge, attention to detail, and straightforward approach. While he works across a broad range of businesses, he has a particular focus on clients in the construction and building sectors.

Committed to keeping insurance clear and practical, Alex places a strong emphasis on honesty and client-first advice. He remains actively engaged with industry developments through ongoing professional development and research, and is also a natural mentor, regularly supporting and guiding emerging brokers within the team.

Joshua-Kerr

Joshua Kerr

National Sales Manager

Joshua is Midland’s National Sales Manager, with more than two decades of experience in the insurance industry. His expertise spans a wide range of insurance solutions, with particular depth in the winery and brewery sectors.

Taking a considered, people-focused approach, Joshua works closely with clients to understand how their businesses operate and the risks they face, allowing him to deliver insurance solutions that are both practical and relevant. He is known for his ability to make complex insurance concepts clear and approachable.

Outside of work, Joshua has a strong connection to community, having spent several years coaching junior basketball and serving as Vice President of a children’s basketball club. Staying closely attuned to industry developments, he is committed to helping clients make informed insurance decisions that support their long-term success.

Justin-Lane

Justin Lane

Director

Justin is a Director at Midland and has been part of the business since 2003. With more than two decades of experience, he works closely with small businesses across Australia, helping them secure insurance solutions that genuinely reflect the way they operate.

Known for his practical, solution-focused approach, Justin places strong emphasis on clarity, reliability, and long-term client relationships. His depth of industry knowledge and consistent, hands-on service have seen him become a trusted adviser to many business owners over time.

Damien Lane

Director

Since 2001, Damien has been central to Midland’s evolution, bringing more than two decades of industry experience and a strong commitment to client-focused service. His expertise spans a wide range of sectors, with recognised depth in the brewery and distillery space.

Working with independent brewers across Australia, Damien helps clients navigate complex operational risks with practical, grounded advice. He is known for his industry knowledge, clear communication, and ability to build enduring client relationships.

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