Small-to-medium-sized businesses make up 93% of Australian businesses that export, with the typical business having turnover of almost $5 million and operating in just one market.

However, a report found that almost half of all businesses surveyed planned to enter a new market this year, with New Zealand, USA, China, Singapore and the UK the most popular destinations.

Are Australian exports growing?

Not quite. According to the ABS, in April 2023, over $56,177,000 in exports left Australia, about a five percent drop from the previous month. All categories – general merchandise, rural goods, and non-rural goods – experienced slippage. Despite this, businesses are increasingly taking advantage of Australia’s free trade agreements.

Benefits of exporting

Benefits of exporting include the ability to build sales and brand with steady and sustainable growth; tapping into more affluent markets in Australia; being able to learn more innovative approaches to gain a competitive edge and spreading and diversifying their risks by tapping into more than one market for their products and services.

Risks for exporters

The top risks for exporters include issues with supply chain, increasing freight costs and tariffs, inflation and hidden costs and damage to goods in transit. Not understanding the local culture in the country to where they’re exporting and global and political risks not just in the export country but those with ports that your products will pass through can also be a risk.

Types of coverage

There are insurance options available as part of your risk management. As the exporter, you’ll be responsible for securing insurance to cover your goods in transit, that is when you sell goods on cost. You’ll endorse the policy cover, thereby assigning it to the buyer/importer. That means they can claim under your policy in their name if the goods are damaged or lost.

For on-off shipments, single cargo export insurance would suit, and for multiple, consider annual cargo export insurance. Other relevant policies include credit insurance, marine cover, political risk, currency and product liability. It can get complicated, so be sure to talk to us for insight into what best suits your operations.

If you would like to know more about what you need to know about insurance as an exporter, please CLICK HERE, or contact us for more information.