The cost of insurance for small businesses on the BizCover platform has dropped to its lowest point in 24 months despite a 1.6% rise in the annual inflation rate in Australia in the last quarter, according to the online business insurance service.
The BizCover SME Insurance Price Index showed that while the overall pricing for small business insurance has remained steady for several quarters, there has been a sharp 3% drop in the most recent quarter (Q1FY20).
The index, comprised of industry group professionals, trades and services, and retail and hospitality, also revealed that while all three groups saw no increases in the overall prices for their insurance, there have been changes within product groups and industries.
Professionals and retailers experienced the most significant cost benefits, with a 4% drop from the prior quarter across all products, driven by both a 5% (retail) and 13% (professionals) decrease in the price of their public liability insurance for the most recent quarter. BizCover said this contradicts the steady industry increases seen for public liability insurance in the broader market.
“While costs may be rising for Australians across other essential utilities and services, it’s positive to see the transparency and contestability of the BizCover platform means small business owners are benefiting from competitive pricing on their business insurance,” said Michael Gottlieb, co-founder and CEO of BizCover.