Flood-hit Queensland businesses under-insured
New research has revealed just how far the under-insurance problem extends in Australia, with many of the Queensland businesses hit by the recent floods being either under-insured or inappropriately insured.
The research, released by Roy Morgan Research, found that only 34 per cent of the businesses had property insurance and 14 per cent had business interruption insurance — figures below the national average for Australian businesses.
The Roy Morgan analysis said that although 88 per cent of Queensland businesses had some type of insurance — a figure on par with Australian businesses in general — they appeared less likely to have several key types of insurance that would be instrumental to Queensland's economic recovery from the floods.
It said that while business vehicles were well insured in Queensland (62 per cent, compared to 57 per cent nationally), this was not the case with property insurance, business interruption insurance, glass insurance or money insurance, all of which were at levels lower than the national average.
Commenting on the results, Roy Morgan business research director Nigel Smith said the lower levels of key types of business insurance in Queensland might reflect a generally less urban and more regional distribution of businesses within the state.
"However, it is worth noting that the level of property insurance, in particular, has declined from above 40 per cent of Queensland businesses in early 2011 to only 34 per cent today," he said.
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