SMEs eyeing new avenues

FOFA reform

Almost a quarter of Australian SMEs are looking to diversify their range of products or services, offering brokers an opportunity.

Zurich’s second annual SME survey has revealed three times more SMEs are rating diversification of product range or services as an avenue for growth, compared with last year.

Zurich Commercial Portfolio Management Head James Makin says the rise in businesses pursuing new opportunities carries insurance ramifications.

“If a business plans to move into new areas in which it is not an expert, such as seeking out new customer groups or providing new products or services, it should ensure that it has adequate insurance in areas such as public and product liability,” he says.

The survey also revealed many SMEs are seeking to reduce costs.

“A business wanting to reduce costs may be trying to do what it used to do but with less staff and resources,” Makin says.

“In such an environment, where corners are being cut, accidents and mistakes are more likely to happen.

“Again, adequate insurance becomes critical to protecting the business.”

To view the full survey, click here.