Faced by surging premiums, Australian businesses of all sizes have been advised by NIBA to pay more attention to controlling their risk exposures. In a media statement released yesterday, CEO Noel Pettersen said even owners of small business can do more to minimise the risks they face. “It was easy enough to ignore risk factors when insurance was cheap, but it’s a whole new world now,” he said.

Business operators should concentrate on those risks that can most easily be identified and dealt with. “For example, managers and owners can minimise the risk of injury to employees and customers with a careful examination of the business premises and physical aspects like goods-handling, floor hazards, and so on,” he said. “The same goes for fire risks, as well as security measures. It’s a matter of identifying the most common risks and dealing with them.”

Mr Pettersen encouraged clients to consult with their brokers over risk management measures. “Most insurance brokers have trained specialists who can help identify the frequency and severity of losses,” he said. “They can develop monitoring systems, conduct training, review operating procedures and help clients put new risk management procedures in place.”