Rural businesses that use a broker will gain much better cover, yet often believe they are too small or can’t afford to use a broker.

A survey of 477 small business owners in regional and rural Victoria, NSW and Queensland has found those who use a broker are more extensively covered and better protected for loss.

The Quality Online Research survey, which was commissioned by CGU and completed in February, shows that more than half (57%) of the small businesses surveyed reported machinery or equipment breakdown in the past year.

Despite this, regional businesses are only half as likely to have business interruption insurance if they don’t use an insurance broker. Only 17% of those who bought their insurance on the direct market had business interruption cover, compared with 34% who used an insurance broker.

The CGU survey says about a third of Australian small businesses deal directly with an insurance company for their insurance needs.

National Manager Sales and Service, Broker & Agency Division, Andrew Beer says the research shows the benefits of using an insurance broker.

“Small business owners need certainty in their insurance cover and can’t leave anything to chance,” he said.