The Rising Cost of Business: Anne Fursman’s Struggle Against Crime and Insurance Premiums

In the picturesque coastal town of Yeppoon, Central Queensland, business owner Anne Fursman is grappling with an alarming reality: the soaring costs of keeping her sports store operational amidst a spate of break-ins. Over the past ten months, her establishment has been targeted six times, leading to a dramatic increase in her insurance premiums and forcing her to invest heavily in security measures.

A Business Under Siege

Anne Fursman’s ordeal began with a shocking ram raid that saw a car crash through the large glass sliding doors of her store. The damage was extensive, taking three weeks to repair, during which time her store was hit again. “We had to renew our insurance, and the only one that would take us on was the one we were with at the time,” she explained. The result? A staggering increase in her insurance premium from $12,000 to $24,000—a move she finds difficult to comprehend. “When it’s not your fault, why should you be paying the excessive premiums?” she lamented.

The insurance company ultimately paid out $100,000 for the damages incurred during the break-ins. In a bid to protect her business, Ms. Fursman invested an additional $20,000 to install perspex over her windows, yet this effort did little to mitigate the rise in her insurance costs. “I find it hard to understand why I have to foot the bill for something that is totally out of my control,” she stated, reflecting the frustration many small business owners feel in the face of rising operational costs.

The Broader Context: Rising Insurance Premiums

The plight of Ms. Fursman is not an isolated incident. According to Di Johnson, a senior lecturer at Griffith University’s Department of Accounting, Finance, and Economics, insurance premiums across Australia have surged by 20-30% during the COVID-19 pandemic. “There is a rising cost for doing business,” she noted, highlighting the financial strain many entrepreneurs are currently facing. In the last quarter alone, the general insurance sector reported a profit of $1.4 billion, raising concerns about the disproportionate increases in premiums compared to inflationary pressures.

A Glimmer of Hope: Declining Youth Crime Rates

Interestingly, recent statistics from Queensland Police indicate a decline in youth offending, with a 6.7% drop across the state in 2023/24 compared to the previous financial year. In the Capricornia district, juvenile crime decreased by an impressive 20.2%. Acting officer-in-charge of the Rockhampton Child Protection Unit, Jim Edwards, attributed this positive trend to successful early intervention programs and community efforts aimed at reducing youth crime.

However, for some business owners like Brad Neven, the statistics do not align with their personal experiences. Neven’s home was invaded by five thieves last year, who stole valuables while his family was inside. “It’s incredulous that they would do that at six-thirty in the morning, in daylight,” he recounted. Just last month, his business’s machinery yard was also targeted, leading to a significant increase in his insurance premiums. “I don’t want to live in a society where I have to have barbed wire around my business, which we do have,” he expressed, echoing the sentiments of many who feel unsafe in their own communities.

The Price of Protection

The Insurance Council of Australia (ICA) has acknowledged the upward pressure on insurance premiums, attributing it to various factors, including escalating costs of natural disasters, rising home and vehicle values, inflation, and the increasing costs of doing business for insurers. “However, insurance prices reflect risk, and a higher premium generally indicates higher risk,” a spokesperson for the ICA explained. They advise customers to frequently shop around and compare policies to find the best deals, a task that can be daunting for small business owners already stretched thin.

Conclusion: A Call for Support

As Anne Fursman continues to navigate the challenges of running her sports store in Yeppoon, her story serves as a poignant reminder of the broader issues facing small businesses in Australia. The rising costs of insurance, coupled with the threat of crime, create a precarious environment for entrepreneurs striving to keep their dreams alive. As communities and authorities work to address crime rates and support local businesses, it is crucial to recognize the impact of these challenges on the livelihoods of individuals like Ms. Fursman and Mr. Neven. Their resilience in the face of adversity is commendable, but it is clear that more needs to be done to ensure that small businesses can thrive without the looming threat of financial ruin.