Victoria’s major employer body has reported what everyone knew by July 1: that insurance is a lot more expensive than it was 12 months ago. The Victorian Employers' Chamber of Commerce and Industry said its survey of 100 members found the average increase in public liability premiums across all industry sectors was 74%, with the highest premium increase being 1200%.

The average increase for a small business was $3,860, while medium-sized businesses faced an average increase of $10,507.

The survey also revealed that some businesses have been unable to obtain insurance cover at any price.  “With inflation currently running at around 3%, cost increases of 20-70% are disastrous for business,” VECCI CEO Neil Coulson said.

VECCI’s survey also confirms that the premium rises are impacting on all sectors of the economy, not just on adventure tourism and community organisations. “For example, many manufacturers and businesses in the services sector are finding things just as difficult as the adventure tourism industry,” Mr Coulson said.

Premium increases also affected business profitability and cashflow positions. “Many businesses [are] absorbing premium increases in their margins due to competitive pressures. Some businesses have had to borrow, increase excess levels or reduce coverage in order to afford the premium.”

Noting the Victorian Government’s generally hostile attitude to tort reform, Mr Coulson said the state “stands alone as the only mainland state not to have introduced or announced reforms to public liability insurance payouts”.