Around 65% of small businesses do not have business interruption cover and 16% do not even have fire insurance, according to research conducted for Allianz.

A report by Cameron Research Group has found 33% of survey respondents don’t have burglary cover and 76% have no insurance for computer or electronic equipment breakdown.

Allianz Australia MD Terry Towell says in a statement that such high levels of non-insurance, particularly for business interruption cover, will send many small companies out of business if they suffer a significant loss.

The research finds business interruption cover take-up is low, even though 77% of respondents said they were aware of it and 88% believed they were insured adequately.

“Few businesses would consider operating without property damage insurance caused by perils like fire or storm,” Mr Towell said.

“However, for a range of reasons, the loss or damage to key machinery or equipment, or even the business premises itself, may take some time to repair or replace, severely impacting the ability of the business to generate income for an extended period.”

The research was conducted in Sydney, Melbourne and Brisbane between February and April, in 10 discussion groups and telephone interviews with 750 business owners and managers.