The Australian Small Business and Family Enterprise Ombudsman says responses to its insurance inquiry have highlighted concern over rising costs, cover denials and substantial changes to policies.

“The feedback we’ve had from small businesses so far has been insightful and concerning, with many small businesses claiming to have been denied insurance outright,” Ombudsman Kate Carnell said today.

“This is particularly the case for many small businesses seeking public liability insurance, which is essential to continue their operations.”

The ombudsman launched the inquiry in late July after receiving a number of complaints and has called for firms that have experienced problems with their insurance provider to complete an online survey. Sunday is the deadline for providing responses.

The ombudsman has so far received more than 700 survey responses from around Australia, with Queensland the most represented region, accounting for 30% of respondents.

Hospitality and tourism, including businesses that operate recreational activities, have been the most represented industries, a spokeswoman told insuranceNEWS.com.au.

Written submissions, which have now closed, have also been received from a number of businesses and organisations, including the Insurance Council of Australia and the National Insurance Brokers Association.

“In the next few weeks we will be holding more detailed consultations and meetings with key stakeholders,” the spokeswoman said. “We appreciate the enthusiastic response we have had to the inquiry.”

Terms of reference for the inquiry include insurance availability and affordability, the role of brokers in getting the right cover, unfair contract terms, dispute resolution and the effectiveness of relevant codes of conduct and legislation.

“We’ve heard from a number of small businesses that have been unable to get insurance for natural disasters,” Ms Carnell said. “Cost has also emerged as a major issue, with many small businesses complaining their insurance premiums have doubled or even tripled in just a few years.”

Ms Carnell says businesses have also reported policies being substantially changed, reducing their level of cover, without their consent and with no refund of premiums.

The inquiry will investigate the issues raised over the coming months and consider if small business products are fit for purpose.

A final report is due for release in December.