The reintroduction of stage four restrictions in Victoria has rattled the confidence of general insurance brokers and their clients and prompted calls for government assistance measures to be ramped up.

The latest lockdown across the entire state was announced on Friday afternoon and took effect just hours later at a minute to midnight, scuppering the plans of thousands for Valentine’s Day and Chinese New Year weekend celebrations.

Many businesses had to shutter suddenly, including gyms, beauty salons and entertainment venues.

Premier Daniel Andrews said on Monday it is too soon to be sure the lockdown would not be extended.

“It adds to a general feeling of uncertainty and that we’re far from over the impacts of COVID-19. It’s a reminder of that,” MD at Insurance House Jay Fereday told insuranceNEWS.com.au.

Though Insurance House, which employs about 80 at its offices in East Melbourne and specialises in SMEs, is not experiencing major client concerns at this stage, Mr Fereday is concerned about the potential for an extension of the five-day snap lockdown.

This third time around there is a “different level of unease” over the inability to return to normal, he says.

Brokers agree hospitality, the arts, travel and tourism have been hardest hit by COVID, although many people have ventured to book accommodation and travel for the upcoming Labour Day public holiday in March after a chaotic Christmas and New Year and Australia Day.

“If all of that gets cancelled, it is more turmoil for travel operators. I hope that we don’t get the setbacks that might come our way,” Mr Fereday says.

While small outbreaks of the virus are to be expected, it should be hoped that contact tracing and other measures are adequate instead of being forced to “shut the entire state”, he says.

The lockdown comes just weeks before JobKeeper assistance is to be scrapped.

Australian Small Business and Family Enterprise Ombudsman Kate Carnell is calling on the Victorian government to step up and compensate small businesses, which were forced to close their doors on one of the busiest holidays of the year.

The compensation should cover all costs associated with running a business, including staff wages and rent, she says.

The snap lockdown, introduced without notice, left businesses such as florists and restaurants with full storage rooms packed with supplies. It came just hours after additional supplies were delivered to many restaurants, many of which had been fully-booked all weekend.

“It is impossible for small businesses to plan for sudden lockdowns and the timing of this one – coinciding with Valentine’s Day and Lunar New Year celebrations - could not be worse,” Ms Carnell says.

It is critical small businesses have support and certainty from the Victorian government, she said.

“These small businesses are set to lose thousands of dollars worth of stock through no fault of their own. Given the nightmarish 12 months these cash-strapped small businesses have already been through, there’s a real risk this lockdown could break them,” she said.