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Ask the Advisor: In todays current environment how do we make sure that our family business is adequately insured?

In Ask the Advisor, we put your questions to the experts. Our FBA Family Business Accredited Advisors answer frequently asked questions from family business clients for your benefit. Responses are from trusted professionals who understand the ins and outs of family business. In this Ask the Advisor, Linda Kelly from Gallagher answers the question, "In todays current environment how do we make sure that our family business is adequately insured?"

21 October, 2025
Family Business Advisor, Family Business Advisors, Article
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In todays current environment how do we make sure that our family business is adequately insured?

Ensuring that family businesses are adequately insured in today's dynamic environment requires a strategic and comprehensive approach. Here are some key steps to consider:

  1. Understand Your Business Risks
    Conduct a thorough risk assessment to identify potential exposures specific to your industry, location, and operations. Consider risks such as property damage, liability, cyber threats, employee-related risks, and supply chain disruptions.
     

  2. Tailor Insurance Coverage to Your Needs
    Family businesses often have unique needs, so it’s essential to customise your insurance policies. Key types of coverage to consider include:

  • Property Insurance: Protects physical assets like buildings, equipment, and inventory.

  • Liability Insurance: Covers legal liabilities arising from injuries, property damage, or negligence.

  • Business Interruption Insurance: Provides financial support if your business operations are disrupted.

  • Cyber Insurance: Protects against data breaches, cyberattacks, and associated liabilities.

  • Directors and Officers (D&O) Insurance: Covers personal liabilities of directors and officers for decisions made on behalf of the business.

  • Workers’ Compensation Insurance: Ensures employees are covered for workplace injuries.

  • Key Person Insurance: Protects the business against the loss of a critical individual.

  • Succession Planning Insurance: Helps with smooth ownership transitions in family businesses.
     

  1. Work with a Trusted Insurance Broker
    Partner with an experienced insurance broker, like Gallagher, who understands the complexities of family businesses. Brokers can help you navigate the insurance market, identify gaps in coverage, and negotiate competitive premiums.
     

  2. Regularly Review and Update Policies
    As your business grows or changes, your insurance needs will evolve. Regularly review your policies to ensure they remain adequate. Update coverage when you expand operations, purchase new assets, or enter new markets.
     

  3. Implement Risk Management Strategies
    Develop and implement risk management practices to minimise potential exposures. Examples include employee training, cybersecurity measures, and workplace safety programs.
     

  4. Consider Emerging Risks
    Stay informed about emerging risks such as climate change, pandemics, and evolving regulatory requirements. Work with your broker to ensure your policies address these risks.
     

  5. Engage in Succession Planning
    Family businesses often face challenges during generational transitions. Ensure your insurance strategy supports long-term continuity and succession planning.
     

  6. Leverage Gallagher’s Expertise
    Gallagher specialises in providing tailored insurance solutions for businesses of all sizes, including family-owned enterprises. We can help you develop a comprehensive risk management strategy that aligns with your business goals and values.
     

  7. Educate Family Members
    Ensure all family members involved in the business understand the importance of insurance and risk management. Foster open communication about the business’s risk profile and insurance strategy.
     

  8. Stay Proactive
    The business environment is constantly changing. Proactively addressing risks and maintaining adequate insurance coverage will help safeguard your family business against unforeseen challenges.
     

Would you like assistance in reviewing your current insurance policies or developing a tailored risk management strategy for your family business? Gallagher can provide expert guidance to ensure you’re fully protected.

By Western Australian based Family Business Accredited Advisor

Linda Kelly

Senior Account Executive, Commercial Perth at Gallagher

https://www.ajg.com/au/