CCIQ worries 'rising insurance premiums' could lead to underinsurance

Queensland has been hit by more than its fair share of severe weather events over the past few years. This has taken a toll on residents of the Sunshine State in many ways - including their business insurance policies.

The Chamber of Commerce and Industry Queensland's (CCIQ) recent Pulse Survey reveals that "rising insurance premiums" is one of the biggest constraints on Queensland businesses in 2014.

"The price hikes are a combination of a number of factors which have jacked up premiums and created of a perfect storm in some regions, especially in North and Far North Queensland," said Nick Behrens of the CCIQ in a March 17 statement.

"However, premiums across the state are soaring."

Other factors that may be contributing to this problematic trend include population densities, market scale and the government's decision to "increase stamp duty on insurance from 7.5 per cent to 9 per cent," reveals Mr Behrens.

As a result, the CCIQ is worried Queensland businesses will cut back on business property insurance and other cover in an attempt to save money - or forego business insurance policies all together.

The organisation will be conducting a study later in March to discover just how much of an impact rising insurance premiums are having on the state.

It's important to note that, while deciding to cut back on business insurance may save you money in the short-term, the long-term cost of being underinsured could be vast.

So, what should you do? Get in contact with Elders Insurance. Our agents can provide you with expert advice on your cover options and make sure you're not underinsured or overinsured.

This means you won't expose yourself to significant out-of-pocket costs if and when disaster strikes, and you also won't be paying for cover you will never use.