How broker fees and commissions work

Insurance brokers in Australia are paid through commission, broker fees, or a combination of both. Understanding how these payment arrangements work can help you make an informed choice when selecting a broker.

Here’s where the money comes from, what you should be told, and what to ask your broker. Insurance brokers in Australia get paid in one of three ways:

1. Commission from the insurer, built into your premium
2. A broker fee you pay directly
3. A combination of both

Want to understand your insurance options and how broker fees and commissions apply? Talk to our team at Barrack Broking for straightforward advice tailored to your business.

The Three Ways Insurance Brokers Can Get Paid

Commission Paid by the Insurer

The insurer pays the broker a commission for arranging and servicing the policy.

This is usually calculated as a percentage of the policy’s base premium. The rate can vary depending on the insurer, the type of cover and the services provided. Commission rates can differ significantly between insurers and classes of insurance.

Broker Fee Paid by the Client

The broker charges the client a fee directly for services such as assessing risks, providing advice, arranging cover and assisting with claims.

Depending on the arrangement, the broker may receive no commission from the insurer or may rebate some or all of any commission received. The fee appears as a separate line item on the client’s invoice, making the cost of the broker’s services more transparent.

Commission Plus Fee

Some brokers receive a reduced commission from the insurer and charge the client an additional service fee. The fee may cover work that is not adequately reflected in the commission, such as complex risk analysis, negotiations with insurers, policy administration or claims support.

What Your Broker Must Tell You About How They Are Paid

Every Australian insurance broker must hold an Australian Financial Services Licence (AFSL), or be authorised to provide financial services on behalf of an AFSL holder. Your broker should be transparent about how they are paid and any costs associated with arranging your insurance. Depending on the broker and policy, this may include commission, broker fees, or a combination of both.

When arranging insurance, your broker should provide clear information about:

• How they are paid
• Any fees or commissions that may apply
• Who pays those fees or commissions
• Any other relevant costs or charges
• What you can expect to pay for their services

Why How Insurance Brokers Get Paid Matters to Your Business

At Barrack Broking, our commitment since founding has been to deliver a level of transparency unmatched by our peers here. That’s why we ensure an experienced Director oversees each client matter. Understanding how your broker is paid can help you ask questions and make sure the cover recommended is appropriate for your business.

Potential conflicts

If a broker’s commission is linked to the cost of your insurance, they may receive more when the premium is higher.

Advice aligned with your interests

With a fee-for-service model, you pay the broker directly for their advice and work. This can make it easier to understand what you’re paying for and how the broker is remunerated.

Transparent value

A broker who cannot tell you what they earn from your account should not have your account. Knowing how your broker is paid helps you understand what you’re paying for and compare brokers based on their expertise, service and overall value.

Questions to Ask Your Insurance Broker

Keep these key questions in mind when choosing an insurance broker, including:

1. How much will you earn from arranging my insurance?
2. Will you receive a commission, charge a fee, or both?
3. If I pay a broker fee, is any commission rebated or offset?
4. Would your remuneration change if I chose a different insurer?
5. Can you provide details of your remuneration in writing?

Barrack provides insurance broking services Australia-wide, and we answer these questions upfront so you understand how we’re paid before we place your cover.

Reach out to us at Barrack Broking today to further clarify.

Frequently Asked Questions

How much does an insurance broker make?

What a broker earns from your account depends on their commission rate and your premium size. Contact us today, and we can take you through our Financial Services Guide (FSG), and you can ask for the dollar amount.

What is an insurance broker?

A licensed adviser who acts for you, not the insurer, to place and manage business insurance and handle claims. Brokers assess risk, compare insurers, negotiate terms, and advocate for you at claim time.

Is it cheaper to buy insurance direct than through a broker?

Not necessarily. Broker commission is often already built into the premium, and brokers access wholesale markets and wordings that direct buyers can’t.

How do you become an insurance broker in Australia?

Complete the required education, gain work experience, and be authorised under an AFSL. Industry bodies outline the career path and skills for this job.

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The Benefits of Using an Insurance Broker

A direct insurer sells you its own policy, while an insurance broker acts on your behalf and compares cover from multiple insurers to find an option suited to your needs.

Choosing between an insurance broker and going direct can have a big impact on the cover your business gets. For businesses with employees, contracts, premises or professional advice, using an insurance broker can provide greater choice, tailored cover and support when you need to make a claim.

While a sole trader with a simple, low-value risk may be comfortable buying insurance directly, the cheapest online quote is not always the safest choice.

Want to see why businesses across different industries choose to work with an insurance broker? Explore who we help to see how Barrack Broking supports businesses like yours.

You can speak with our insurance experts about your industry specific insurance needs today.

The Difference Between an Insurance Broker and a Direct Insurer

An insurer is the company that takes on the risk and pays your claim when an insured event occurs. An insurance broker is a licensed intermediary who acts on behalf of the business, rather than the insurer, to arrange insurance cover.

The key difference is who is acting for whom.

A direct insurer is always selling its own insurance product. However, a broker is working from the business’s side of the relationship and can compare available options

Why Do People Use Insurance Brokers?

People and businesses use insurance brokers because they want expert advice, more choice and support throughout the life of their policy.

Insurance brokers aren’t just for big businesses, and using one doesn’t necessarily cost you more. Brokers help you compare multiple insurers, tailor cover to your risks, and advocate for you when it comes time to submit a claim.

There are three main ways the cost of insurance and broker services may be structured.

Frequently Asked Questions

Do I pay more for business insurance if I use a broker?

It is a common misconception that using an insurance broker means paying more for your cover. Commission is built into the premium whether you go direct or via a broker, and any separate broker fee must be disclosed up front under the National Insurance Brokers Association (NIBA).

Is direct insurance faster than using a broker for a small business?

Getting a quote directly online can be faster, but that doesn’t necessarily mean the overall process will be. If you need to make a claim, a broker can handle the paperwork, negotiate with the insurer and help resolve disputes, potentially making the claims process quicker and easier.

Can an insurance broker help me if my claim has already been rejected?

Yes. A broker can review the insurer’s decision, help you understand why the claim was rejected and advocate for you in discussions with the insurer. If the dispute cannot be resolved through the insurer’s internal complaints process, they may also help you escalate the matter to AFCA.

What is the main difference between a broker and an insurance agent?

An agent represents the insurer and sells that company’s products. A broker represents you, shops multiple insurers, and provides advice on record about suitable cover.

Buying insurance direct vs through a broker in Australia: what’s the difference?

Buying direct means dealing with one insurer and comparing the price and cover they offer. A broker can compare options from multiple insurers, provide advice based on your needs, and support you through the claims process and any disputes that arise.

Better Insurance Starts with Barrack Broking

We understand the difference it makes to have someone advocating for you when you need it most.

Whether you’re reviewing your business insurance or looking for personal cover, our brokers can help you find the right protection for your needs. Don’t wait until you make a claim to discover you’re underinsured. Talk to one of our insurance brokers today.

The post Should I Use an Insurance Broker or Go Direct? appeared first on Barrack Broking.

What’s the difference or do you need both?

Public liability vs product liability comes down to what triggers the cover.

Public Liability: Protects you against injury or property damage caused by your business activities and premises.

Product Liability: Protects you against injury or damage caused by something you sold, supplied, made or installed.

Getting the distinction right matters. A single personal injury claim can run into millions of dollars, and if you’re insured under the wrong policy, you could end up paying it yourself.

The easiest way to remember the difference is:

• Public = your business is accused of the problem.
• Product = your product is accused of the problem.

In this blog guide, you’ll learn which type of liability applies to your business, when you might need both, and how to make sure you’re not left exposed when a claim arises.

Still unsure whether your business needs public liability, product liability or both? Explore who we help to see how Barrack Broking helps businesses find the right cover for their industry. You can also speak with our insurance experts for advice on the liability cover your business needs.

What Is Public Liability Insurance?

Public liability insurance protects your business against claims from third parties who suffer personal injury or property damage because of your operations. It does not cover injuries to your own staff, that is workers’ compensation.

Public liability insurance responds to two main types of claims: personal injury and property damage. It is a common contractual requirement, and many Australian small businesses are expected to hold public liability cover even where it is not legally mandatory.

Here are some common examples of public liability claims:

• A visitor slips on a wet floor in your warehouse and breaks an ankle.
• A contractor accidentally damages a client’s fit out while installing equipment.
• A customer trips on a café step and sustains a head injury.
• Your team knocks over and damages a client’s property while on site.

For a deeper look at what public liability insurance covers and whether your business needs it, see our guide to public liability insurance for SMEs.

What Is Product Liability Insurance?

Product liability insurance protects your business against claims for personal injury or property damage caused by a product you manufactured, imported, sold, supplied, installed or repaired, once that product has left your hands. Product can mean more than you might expect, it could be a builder’s completed work, a food item, imported structural steel or a piece of equipment a tradie has installed.

Here are some common examples of product liability claims:

• A customer is injured by a faulty product your business sold.
• A food item causes a customer to become ill.
• Equipment your business installed malfunctions and damages a client’s property.
• A defect in your completed building work causes injury or property damage.

For a deeper look at what coverage and whether your business needs it, see our guide to manufacturing insurance here, that overlaps significantly with public liability insurance.

Do You Need Both? Public and Product Liability Insurance?

You may need both public and product liability insurance if your business sells, makes or imports goods, installs products or hands over completed work, or if your contracts require product liability cover.

In practice, most businesses that supply anything physical end up needing both. In Australia, the two are almost always written together as a combined public and product liability policy, so the cost of adding product cover is usually small compared with buying it separately.

If you’re unsure which combination suits your operations, our Public and Product Liability service page can help you structure the right cover for your business and contracts.

Why Barrack Broking?

Understanding Your Liability Exposure

We’ll start by understanding your business and mapping your public and product liability risks so we can recommend the right level of cover rather than a one-size-fits-all policy.

Tailored Strategy and Recommended Sum Insured

Using our market expertise, we’ll recommend a tailored liability insurance strategy with clear options, limits, inclusions and costs.

Negotiate and Arrange Your Cover

We’ll negotiate with insurers to secure appropriate cover and terms based on your business, industry and identified risks.

Ongoing Support and Claim Management

Our service doesn’t end when the policy is placed. Our service continues all year round. Whether you need further claim information, policy clarification, or general advice, you can rely on us to support you.

Frequently Asked Questions

What’s the difference between public liability and product liability?

Public liability covers injury or damage from your business activities and premises; product liability covers injury or damage from products you supplied. In Australia, they’re usually combined in one policy.

Do Australian small businesses need public liability?

It’s not legally mandatory for most, but many landlords, councils, head contractors and clients often require it, and the financial exposure makes it standard practice.

Contact one of our insurance brokers today and we can clarify if public liability insurance is suitable for your needs.

How long can I be held legally responsible for liabilities from completed works?

You can be liable for years after completion. That’s why public and product liability cover can be important even after a project is finished, helping protect your business if a claim arises later.

Better Insurance Starts with Barrack Broking

We understand the difference it makes to have someone advocating for you when a liability claim arises.

Whether you’re reviewing your existing public and product liability cover or arranging it for the first time, our brokers can help you find protection that reflects the work you do, the products you supply and the risks your business faces.

Don’t wait until you make a claim to discover you’re underinsured. Talk to one of our expert insurance brokers today.

The post Public Liability vs Product Liability appeared first on Barrack Broking.

Which Coverage is Right for Your Business?

The main difference between business insurance and Industrial Special Risks insurance is the size, value and complexity of the risks you need to cover.

Business Insurance: Standard business insurance is suited to small and mid-sized businesses with straightforward operations. It can combine covers such as property, contents, stock and business interruption into one policy to protect your business against common risks.

Industrial Special Risks: Industrial Special Risks insurance is designed for larger or more complex businesses with significant assets and higher sums insured. It provides broader property and business interruption cover. It can be tailored for businesses with high-value assets, multiple locations or more complex operations.

Getting the distinction right matters. A major fire, storm or machinery breakdown at a large site can create losses well beyond packaged policy limits, and if you’re insured under the wrong program, you could be left covering the gap yourself.

In this blog guide, you’ll learn when a business pack stops being enough, what ISR adds in breadth and limits, and how to decide which cover suits your assets, turnover and site count.

Still unsure whether your business needs a business pack, ISR or a tailored blend? Explore who we help, to see how Barrack Broking helps businesses find the right cover for their industry. Speak with our insurance experts today for advice on the property and interruption cover your business needs.

What Is Business Insurance?

A business insurance pack is a packaged policy sold to small and medium businesses.

It generally bundles property, contents, theft, glass, public liability and business interruption. It’s designed for operators with single sites, modest asset values and standard risk profiles that fit neatly within insurer guidelines.

Common types of business insurance packs include:

• Property (buildings and/or contents)
• Contents, stock and plant
• Theft and attempted theft
• Glass
• Business interruption
• Public liability

Business packs suit businesses that operate from one location, have relatively low sums insured and don’t require highly customised terms or very high limits.

What Is Industrial Special Risks Insurance?

Industrial Special Risks insurance is a tailored ‘all risks’ property and business interruption policy for larger or more complex businesses.

It’s built for operators with high-value assets (often $5 million+), multiple sites, specialised plant or higher hazard exposures that fall outside standard packaged policies.

Common features of an Industrial Special Risks insurance include:

• All-risks property cover
• Business interruption
• High sums insured and multi-site capability
• Customisable terms and sub-limits
• Separate liability placement

Industrial Special Risks insurance generally suits businesses that have outgrown business insurance packs.

Why Choose Barrack Broking?

Understanding Your Property and Interruption Exposure

We’ll start by listening and understanding your business and mapping your property, assets and business interruption risks so we can recommend the right level of cover, rather than a one size fits all policy.

Tailored Strategy and Recommended Sum Insured

Using our market expertise, we’ll recommend a tailored property and interruption insurance strategy with clear options, limits, inclusions and costs, aligned to your asset values, sites and operations.

Negotiate and Arrange Your Cover

We’ll negotiate with insurers to secure appropriate cover and terms based on your business, industry and identified risks, ensuring your program fits your exposure rather than forcing your exposure to fit a standard pack.

Ongoing Support and Claim Management

Our service doesn’t end when the policy is placed. Our service continues all year round. Whether you need further claim information, policy clarification, or general advice, you can rely on us to support you.

Frequently Asked Questions

What is industrial special risks or ISR insurance?

Industrial Special Risks, or ISR, insurance is designed for larger or more complex businesses that need broader property and business interruption cover.

It typically covers two core sections:

• Physical loss or damage to insured property
• Business interruption and the financial losses that follow an insured event.

What does business insurance cover?

Business insurance can protect your business against risks such as property damage, theft, business interruption, liability and loss of stock or equipment. The right cover depends on your business, its assets and how you operate. Barrack Broking can help you determine what cover you need.

Is ISR right for you?

ISR may suit businesses with $5 million+ in assets or multiple sites and complex operations. If your assets are below this price point, a business pack may be more suitable. At Barrack Broking, we can help determine which option is right for your business.

Better Insurance Starts with Barrack Broking

We understand the difference it makes to have someone advocating for you when you need it most.

Whether you’re reviewing your existing business insurance or considering Industrial Special Risks cover, our brokers can help you find protection that reflects the size of your business, the assets you need to insure and the risks you face.

Don’t wait until you make a claim to discover you’re underinsured. Talk to one of our expert insurance brokers today.

The post Business Insurance Vs Industrial Special Risks Insurance? appeared first on Barrack Broking.

Why Battery Fire Risk Is Changing

Australia’s transition to renewable energy is accelerating the installation of battery technology across every type of property. Utility-scale battery energy storage systems (BESS) are being deployed to stabilise the electricity grid, while commercial and residential property owners are installing battery storage alongside rooftop solar at a rapidly increasing rate. At the same time, the proliferation of electric vehicles, e-bikes, e-scooters, power tools, and other lithium-ion battery-powered devices means that virtually every commercial building in Australia now hosts battery technology in some form.

The scale of the fire risk this creates is not theoretical. Fire and Rescue NSW recorded 332 lithium-ion battery-related incidents in 2025, nearly one a day. In Western Australia, there was a fire caused by lithium-ion batteries almost every second day in 2024, making it the worst year on record. The Australian Competition and Consumer Commission has received more than 230 product safety reports relating to lithium-ion batteries over a five-year period. Across Australia, fire services consistently describe battery-related fires as one of the fastest-growing fire risks facing the community, and the data shows the incident rate increasing year on year.

For commercial property owners, this is not a peripheral risk, it is a mainstream property hazard that demands specific attention in risk management planning and insurance review.

The Central Hazard: Thermal Runaway

Understanding why battery fires are so dangerous begins with understanding the science behind them. The primary fire risk associated with lithium-ion batteries is a process known as thermal runaway — a self-sustaining chain reaction in which a battery cell generates heat faster than it can dissipate it. Once thermal runaway begins, the battery produces flammable and toxic gases that can ignite, potentially causing a fire or explosion that spreads rapidly to adjacent battery units or other building materials.

What makes thermal runaway so challenging from a property risk perspective is that, once initiated, there is currently no widely accepted method to stop a lithium-ion battery fire. In many cases, the only available response is to allow the fire to burn out while focusing on preventing spread — a scenario that can result in extensive property damage and prolonged business disruption.

The situation is compounded by changes in battery cell technology. As individual cell capacity has grown, the failure of a single cell can now produce sufficient flammable gas to create a hazardous atmosphere within a battery enclosure — a threshold that previously required multiple cell failures to reach. This means the risk profile of modern high-density battery installations is not directly comparable to earlier technology.

Conventional fire suppression systems are not designed for lithium-ion battery fires. Clean agents and aerosols that are effective against conventional electrical fires do not stop thermal runaway once it is underway. This is a critical distinction that building owners and their fire safety advisers need to understand when assessing whether existing fire protection infrastructure is adequate for the battery technology now present in their building.

Battery Risks Specific to Commercial Property

While battery fire risk affects all property types, commercial buildings present a particular set of exposure scenarios that property owners should be across. Strata committees should raise battery storage with their strata insurance broker before renewal.

Building-integrated battery energy storage systems

As solar installations become standard on commercial rooftops, battery storage systems co-located with those installations are increasingly common. These systems — ranging from small commercial units to substantial energy storage installations — present fire risks that are meaningfully different from conventional electrical equipment. The location of the battery system relative to the building structure, other tenancies, and fire exits has direct implications for how a fire event would unfold and what damage could result.

Electric vehicle charging infrastructure

The installation of EV charging stations in commercial car parks and loading areas is accelerating. While the charging station itself is not the primary hazard, the vehicles connected to it are. A lithium-ion battery fire in a vehicle within an enclosed car park, or adjacent to a building facade, presents a significant structural fire risk. NSW strata reforms that came into effect in mid-2025 prevent owners corporations from blocking EV charger installations on aesthetic grounds alone, meaning the volume of EV charging in commercial and mixed-use buildings is likely to increase.

Tenant-operated battery equipment

Many commercial tenants operate battery-powered equipment as part of their business — from forklifts and warehouse machinery to data centre UPS systems and telecommunications backup power. The charging infrastructure for this equipment, if not properly maintained and managed, is a recurring source of battery fire incidents in commercial and industrial buildings. Landlords who are not across what their tenants are operating and charging on the premises may be unaware of the battery hazard profile within their own building.

Mobility devices in common areas

E-bikes and e-scooters are increasingly being stored and charged in commercial building common areas, car parks, and loading docks — by tenants, employees, and delivery personnel. In South Australia, around one in four battery fire incidents in the first half of 2025 involved mobility devices. For a commercial property owner, a fire ignited by an e-bike charging in a basement car park or common area represents a significant property and liability exposure.

Higher-density installations and proximity risk

Where multiple battery systems or units are installed in close proximity — whether in strata industrial buildings, technology facilities, or retail centres with rooftop solar storage — the risk of fire spreading between units increases. The separation distance between battery systems is a key variable in how a fire event escalates, and reduced separation in higher-density installations can significantly amplify the potential loss.

Risk Management Recommendations for Commercial Property Owners

While a battery fire, once started, may be difficult to suppress, there is a well-developed set of preventive and mitigation measures that can materially reduce both the likelihood and the severity of an event. The following represent the key risk management steps relevant to commercial property owners.

1. Conduct a Battery Risk Audit of Your Property

Identify all battery systems present in your building — including building-integrated storage systems, EV charging stations, tenant equipment, and mobility devices being charged in common areas. Many property owners underestimate the volume and diversity of battery technology now present in their buildings. A clear inventory is the foundation of an effective risk management response.

2. Ensure Appropriate Separation and Siting

Where battery systems are installed, the physical separation between individual units and between the battery installation and the building structure matters significantly. Insurers typically expect a minimum separation distance between battery containers and other units or structures. Where indoor battery installations are involved, the siting of the battery system relative to fire exits, occupied areas, and other high-value assets requires specific assessment.

3. Install Early Detection and Monitoring Systems

Given that thermal runaway cannot be stopped once initiated, early detection is the most important line of defence. Off-gas detection systems — which identify the gases produced by a battery in distress before thermal runaway fully develops — provide the earliest possible warning and the best opportunity to intervene or evacuate. Battery management systems that monitor individual cells and flag abnormal conditions are an expected feature of any well-managed battery installation.

4. Implement Appropriate Ventilation

Mechanical ventilation systems that can extract and expel the flammable gases produced by a battery prior to and during a thermal runaway event are an important mitigation measure for enclosed battery installations. Allowing these gases to accumulate within a confined space significantly increases the risk of ignition and explosion.

5. Install Deflagration Panels Where Required

Deflagration panels are pressure-relief devices installed in battery enclosures to relieve the pressure generated by an explosion before structural damage to the container or building occurs. For enclosed battery installations, these represent an important final mitigation measure to limit the structural consequences of a thermal event.

6. Review Tenant Lease Conditions and Consent Processes

Property owners should review whether their lease agreements address tenant obligations regarding the storage and charging of battery-powered equipment on the premises. Establishing notification and consent requirements for significant battery installations — and maintaining a documented record of what is being operated within the building — is both a risk management measure and a matter of insurance disclosure.

7. Brief Your Fire Warden and Emergency Response Team

Building fire wardens and emergency response personnel need to understand that a battery fire may behave very differently from a conventional fire and that standard suppression approaches may not be appropriate. Ensuring that emergency procedures reflect the battery hazard profile of the building is an important step that is often overlooked.

8. Ensure Regulatory Compliance for Battery Equipment

Regulations covering the sale, installation, and certification of lithium-ion battery-powered devices are tightening across Australian states. In NSW, from February 2026, all e-bikes must carry permanent certification labels on the frame, with fines of up to $825,000 for corporations selling non-compliant products. Property owners and building managers should be aware of the regulatory requirements applicable to battery equipment in their building and ensure that tenants and building users are operating compliant devices.

What This Means for Your Commercial Property Insurance

Battery technology is reshaping how the insurance market assesses and underwrites commercial property risk. Property owners with battery systems on their premises — or tenants who operate significant battery-powered equipment — need to be aware of several insurance considerations.

Disclosure is essential

Battery systems and EV charging infrastructure are material facts that must be disclosed to your insurer. A property owner who fails to disclose the presence of a significant battery storage installation may find that coverage is affected at the time of a claim. This applies equally to the installation of new battery systems mid-policy — your broker should be notified of any material change to your property’s risk profile.

Standard property policies may not be adequate

Conventional commercial property insurance is not designed with battery fire risk in mind. Depending on the scale and nature of the battery technology present in your building, a standard policy may not respond adequately to a thermal runaway event — particularly where the fire causes damage to an adjacent building, results in extended business interruption, or involves environmental contamination from battery chemicals.

Insurers are increasingly requiring documented risk management

The insurance market for properties with significant battery installations is becoming more rigorous in its underwriting requirements. Documented evidence of battery management systems, off-gas detection, appropriate separation, and emergency procedures is increasingly expected as a condition of coverage. Properties that cannot demonstrate proactive risk management may face restricted coverage, higher premiums, or difficulty placing the risk.

Indoor installations attract heightened scrutiny

Insurers typically apply greater scrutiny to indoor battery installations than to outdoor, separated systems. A battery storage system installed inside a building — particularly in a mixed-use or occupied commercial property — will attract specific underwriting assessment. The design, containment, monitoring, and fire protection measures in place will directly influence whether coverage is available and on what terms.

Business interruption exposure can be significant

A thermal runaway event in a commercial building has the potential to render part or all of the premises unusable for an extended period, affecting not only the property owner’s rental income but also the operations of multiple tenants. Understanding whether your loss of rent and business interruption coverage is adequate for the potential duration and scope of a battery-related shutdown is an important review exercise.

Barrack Broking: Specialist Advice for Commercial Property Owners

Battery risk is an emerging risk in commercial property insurance. A standard renewal process that does not specifically address the battery technology present in your building may leave you with coverage gaps that only become apparent at the time of a claim.

At Barrack Broking, we work with commercial property owners across Australia as a specialist commercial property insurance broker, with experience in placing complex and emerging property risks including those arising from battery energy storage, EV infrastructure, and industrial battery operations. We understand how insurers are approaching battery risk in the current market, what documentation and risk management measures they expect to see, and how to structure coverage that responds to the actual risk profile of your property.

If you own or manage commercial property that includes battery storage systems, EV charging infrastructure, or tenants with significant battery-powered operations, we recommend a specific conversation about whether your current insurance arrangements are adequate.

To discuss your commercial property insurance, contact Barrack Broking on 1300 605 101 or visit our commercial property insurance broker page to find out more.

Get in touch with Barrack Broking →

*This Risk Tip is general information only and does not constitute financial product advice. Property owners should seek specific advice from a qualified insurance broker and, where appropriate, a qualified fire safety engineer regarding the battery risks and insurance requirements applicable to their specific property.

The post Risk Tip: Battery Fire Hazards in Commercial Property appeared first on Barrack Broking.

Recent commercial property research confirms what many in the Queensland market are already experiencing firsthand: this is no longer a story about one asset class. The state’s investment fundamentals are broadening, coastal markets are becoming institutional destinations, and a new and more diverse set of buyers is arriving at the table. Understanding what that means for your insurance program is an essential part of protecting the asset value being created.

Queensland’s Commercial Property Market: What the Data Shows

Queensland closed the 2025/26 financial year as the standout performer among the states, lifting its share of national commercial property turnover to 25.4 per cent — up from just 16.9 per cent in 2018/19 — with transaction volumes reaching $22.33 billion for the year. 

What is particularly significant for insurance purposes is not just the volume of activity, but its composition. The Queensland market is no longer concentrated in a single asset class or a single geographic corridor. Risk profiles are diversifying — and that requires insurance programs to diversify with them.

Industrial: Still the Largest Asset Class, but Broadening in Character

Industrial remains Queensland’s largest asset class, though its share of state turnover eased to 29.3 per cent from 36.4 per cent in 2024/25 — a moderation that reflects a broadening of where capital is being placed rather than any waning of appeal. Industrial buying activity this year was notable for its breadth, spanning small owner-occupiers and private investors active in strata industrial product through to large distribution facilities changing hands to institutional and offshore capital.

For insurance, industrial property presents some of the most varied risk profiles in the commercial sector. A small strata industrial unit occupied by a trades business carries a very different risk profile from a large distribution facility with complex plant and equipment, high-value stock, and significant public interface. Sum insured adequacy, business interruption coverage, and machinery breakdown protection are all areas where industrial property owners benefit from specialist advice rather than a standard approach.

Retail: The Standout Performer of the Year

Retail was the standout performer of the year, climbing to 23.4 per cent of state turnover from 17.5 per cent in 2024/25. Strong population growth across the south east, including the Gold Coast and Sunshine Coast, has underpinned trading performance at neighbourhood and sub-regional centres, restoring investor confidence in retail’s income security after several years in which the sector was largely overlooked in favour of industrial and alternative assets.

Retail property insurance carries its own distinctive set of considerations. Public liability exposure is significant in tenanted retail environments, where customer access is high and the landlord’s responsibility for common areas and building fabric is ongoing. Lease arrangements, tenant mix, and the treatment of tenant improvements all affect how a building sum insured should be calculated. Where retail centres anchor mixed-use precincts, the interaction between strata, common property, and individually owned lots adds further complexity.

Aged Care and Healthcare-Aligned Assets: The Year’s Most Significant Shift

The most significant shift in the data was the surge in aged care and medical-aligned assets, up to 9.6 per cent of state turnover from just 1.5 per cent the previous year. This was driven in large part by a number of substantial aged care portfolios changing hands as operators and institutional owners moved to consolidate holdings ahead of continued sector reform. Queensland’s ageing population continues to support long-term demand for this asset class well beyond the portfolio activity that defined this particular year.

Aged care and healthcare property is among the most specialised asset classes from an insurance perspective. These properties carry heightened public liability exposure, complex regulatory compliance obligations, and in many cases operate as going concerns where business interruption and liability coverage must be structured around the care environment, not just the building. Property owners in this space who hold standard commercial property policies without specialist review of the occupancy risk may find significant coverage gaps.

Hotels and Tourism Assets: Institutional in Scale, Complex in Risk

Hotels lifted their share of state turnover to 6.4 per cent from 3.6 per cent, consistent with strong visitor demand across Queensland, with offshore capital a regular feature of ownership given the scale of investment required.

Hotels and tourism assets involve the intersection of property, liability, business interruption, and in many cases liquor-related risks in a single asset. The building replacement cost methodology for a hotel differs markedly from a standard commercial building, and the income protection structure needs to account for the seasonal and event-driven nature of hotel revenue. For properties along Queensland’s coastal corridors — increasingly active investment markets — weather and natural disaster exposure also warrants specific attention.

Office and Development Sites: A More Cautious Environment

Office and development sites both eased back, to 12.8 per cent and 13.9 per cent of state turnover respectively, reflecting a more cautious approach to feasibility and a preference for income-producing assets in the current environment.

For office owners, the post-pandemic normalisation of occupancy patterns continues to create uncertainty around rental income levels and vacancy rates — both of which have direct implications for how business interruption and loss of rent coverage should be structured. Development sites carry construction-phase risks that require separate cover during the build period, with the transition to a completed property policy a critical point of potential exposure.

The Insurance Challenges Facing Queensland Commercial Property Owners

Beyond asset class-specific considerations, there are several insurance dynamics that apply broadly across the Queensland commercial property market right now.

Underinsurance remains a significant and widespread risk

The combination of construction cost inflation over recent years and the rapid increase in Queensland property values has left many commercial buildings insured at sums that no longer reflect replacement cost. A building that was insured adequately three years ago may now be materially underinsured — not because the owner has been negligent, but because costs have moved faster than many renewal review processes have tracked. In the event of a total loss, the consequences of underinsurance are severe and largely irreversible. Regular professional valuation of building replacement cost, independent of market value, is essential.

Natural hazard exposure is a defining feature of Queensland property risk

Cyclone, flood, storm surge, and hail exposure varies significantly across Queensland’s geography, and the insurance market’s assessment of those risks has shifted materially in recent years. Properties in coastal and low-lying areas may face coverage restrictions, higher deductibles, or specific sub-limits for natural hazard events. Understanding exactly what your policy covers, and what it excludes or sub-limits, in the context of Queensland’s natural hazard environment is not optional; it is a fundamental component of risk management.

Vacancy and change of use create coverage gaps

In a dynamic market where assets change hands, tenants turn over, and properties move between uses during renovation or repositioning, the coverage position under a standard commercial property policy can shift without the owner realising it. Extended vacancy periods, changes in occupancy type, and construction or refurbishment activity all have the potential to alter or void coverage under policy conditions that many owners are not fully aware of.

Liability exposure follows tenant mix and public access

A commercial property owner’s liability exposure is not static — it changes with the nature of the tenants occupying the building, the volume of public access, the condition of common areas, and the extent of the landlord’s ongoing maintenance obligations. As Queensland retail centres see increased foot traffic on the back of population growth, and as mixed-use precincts become more prevalent, liability coverage needs to be reviewed in the context of how the property is actually being used.

Strata and body corporate insurance requires specialist understanding

For owners of strata-titled commercial property — increasingly common in industrial, retail and office markets — the interaction between the body corporate’s building policy and the individual lot owner’s contents and liability coverage is a source of frequent and significant gaps. Understanding what the body corporate policy covers, what it excludes, and what the individual owner needs to arrange separately is an area where broker expertise matters.

Why Specialist Brokerage Matters for Commercial Property

Commercial property insurance is not a commodity product. The risks involved — from building valuation and natural hazard exposure to liability, loss of rent, and occupancy conditions — require an adviser who understands the asset class, the insurance market’s current approach to Queensland property risks, and the specific circumstances of your portfolio.

At Barrack Broking, we act as a specialist commercial property insurance broker for property owners, investors and occupiers across Queensland and nationally. Our approach is built around understanding your property, its use, its tenancy profile, and your objectives — and then accessing the insurance market to secure coverage that is matched to your risk, not simply the most convenient option.

We work with property owners across the full range of commercial asset classes — retail, industrial, office, hospitality, healthcare, and mixed-use — and our team has direct experience with the complexity that comes with Queensland’s natural hazard environment, strata arrangements, and the compliance obligations that apply to different property types.

As a principal-owned boutique broker, we bring senior attention to every client relationship. That means your program is reviewed by people who understand commercial property risk at a detailed level, not processed through a call centre or a generic renewal cycle.

Key Insurance Considerations for Queensland Commercial Property Owners

Whether you own a single tenanted retail premises or a diversified portfolio of commercial assets, the following areas are worth reviewing with a specialist broker:

Building sum insured and replacement cost

When was your building last professionally valued for insurance purposes? In Queensland’s current construction cost environment, the gap between insured value and true replacement cost can be substantial.

Natural hazard sub-limits and deductibles

Does your policy respond fully to flood, cyclone, and storm surge events — and are the deductibles applicable to those events proportionate to the risk? For coastal Queensland properties in particular, the detail of natural hazard coverage deserves close scrutiny.

Loss of rent and business interruption

If your property is rendered untenantable by an insured event, does your loss of rent coverage reflect the actual rent roll, and does the indemnity period allow sufficient time for repair or rebuilding in Queensland’s current construction environment?

Liability coverage for common areas and building fabric

Are your public liability limits adequate for the scale and nature of your property, and does the policy clearly address your responsibilities as landlord versus your tenants’ own liability?

Vacancy and renovation conditions

If your property is vacant, partially vacant, or undergoing renovation, are you aware of the conditions your policy imposes, and have you notified your insurer or broker of the change in circumstances?

Strata — what’s covered by the body corporate, and what isn’t

If you own strata-titled commercial property, do you have a clear picture of where the body corporate policy ends and your individual coverage needs to begin?

Talk to Barrack Broking About Your Commercial Property Insurance

Queensland’s commercial property market is growing in depth and sophistication. The insurance programs protecting those assets need to keep pace. If you would like a specialist review of your commercial property insurance arrangements — whether for a single property or a portfolio — the team at Barrack Broking is available to help.

We service clients nationally from our offices in Sydney, Brisbane and Maroochydore, with deep familiarity with the Queensland market and its unique risk characteristics. To find out more about our commercial property insurance broking services, contact our team today.

Get in touch with Barrack Broking →

*This article is general in nature and does not constitute financial product advice. Commercial property owners should seek specific advice from a qualified insurance broker regarding their individual circumstances and coverage requirements.

The post Queensland Commercial Property Is Booming — Is Your Insurance Keeping Pace? appeared first on Barrack Broking.

Specialists in the product recall insurance space have recently reinforced a message that sits at the heart of effective recall risk management: preparation, not response, determines the outcome. This article draws on that thinking and adds practical context for Australian food and beverage manufacturers.

The Australian Recall Landscape

The scale of the challenge is worth understanding. According to Food Standards Australia New Zealand (FSANZ), the number of food recalls coordinated annually has trended upward over the past decade. FSANZ coordinated 95 food recalls in 2024, a 16% increase on 2023, with undeclared allergens remaining the leading cause, mostly due to labelling errors. In 2025, FSANZ coordinated 92 food recalls — above the ten-year average of 87 — with undeclared allergens accounting for 38% of all recalls, and packaging errors, accidental cross contamination and failure to communicate ingredient changes identified as the main contributing factors.

The cost exposure behind these figures is significant. A 2017 FSANZ report estimated the average direct cost of a food recall at approximately AUD $10 million — and that figure does not capture the longer-term impact on brand reputation and consumer trust. The financial consequences of a serious foodborne illness event extend further still, with a 2022 FSANZ study finding that foodborne illness costs the Australian economy $2.44 billion annually when lost productivity, direct healthcare costs, and premature mortality are taken into account.

What this data makes clear is that the question for a food and beverage manufacturer is not whether a recall could happen, but whether the business is prepared when it does.

Why Recalls Are Becoming More Complex

Several dynamics are increasing both the frequency and complexity of product recall events.

Regulatory scrutiny is intensifying

Regulators have more authority than at any point in recent history to order recalls and shut down production facilities. The number of regulatory bodies with oversight across the supply chain has grown, as has the number of standards that businesses must comply with. Organisations that are not fully across their compliance obligations can be caught unaware by regulatory action, even where the underlying risk is unintentional.

Supply chains introduce new vulnerabilities

Local food manufacturers increasingly source raw materials from international suppliers to manage input costs. This can introduce variability in quality standards, traceability gaps, and ingredient disclosure challenges — all of which are factors in a disproportionate share of recall events. The more complex and extended the supply chain, the harder it becomes to identify the origin of a contamination event quickly, and the broader the potential recall scope.

Social media has changed the reputational stakes

A recall that might once have been managed through direct consumer contact and a quiet shelf removal now plays out publicly, rapidly, and without the manufacturer controlling the narrative. Consumer concern expressed through social media platforms can escalate faster than a formal recall response can be activated, making the first hours of an incident management process more consequential than ever.

The co-mingling problem

As illustrated by significant tampering incidents in the Australian market, produce and ingredients sourced from multiple suppliers is frequently combined, repackaged, or distributed through opaque logistics networks. When a safety concern arises, identifying which batches and which downstream customers are affected becomes a significant operational challenge — one that can only be addressed effectively if the traceability systems and documentation exist to support it.

What Recall Insurance Actually Covers — and What It Doesn’t

Understanding what a product recall policy does and does not respond to is essential before an incident occurs — not during one.

Accidental contamination and mislabelling

account for the substantial majority of recall claims. Coverage in these circumstances is typically triggered where the contamination or mislabelling could reasonably lead to bodily injury, illness, death, or property damage. Common covered losses include the direct costs of removing product from the market, transportation, additional labour, warehouse costs, the cost to restore product to merchantable quality or replace it, and loss of gross revenue during the period of disruption.

An important nuance that manufacturers need to understand is that recall policies do not generally cover product quality issues in the absence of a safety trigger. A product that is substandard, disappointing, or below specification — without a risk of bodily injury or property damage — typically falls outside coverage. This distinction matters significantly in practice: not every mould, for example, presents a health risk, and whether the recall trigger is met depends on whether the specific contaminant or defect clears the bodily injury threshold. This is a determination that needs expert assessment.

Malicious product tampering

Where a product is rendered unfit or dangerous for consumption or creates that reasonable public impression — can also be covered. Events of this nature have occurred in Australia and are not hypothetical. When tampering occurs, covered losses can include recall and disposal costs, media communication expenses, retailers’ costs associated with removing product from shelves, and business interruption losses. Where the product is an ingredient in a customer’s manufactured product, the policy may also extend to some of the customer’s costs — an important feature for ingredient suppliers.

Product extortion

Where a demand for payment or compensation is made alongside a tampering threat — is a distinct scenario from malicious tampering and is treated differently under policy terms. Cover in these circumstances typically extends to extortion costs and the rehabilitation costs associated with restoring the product to its pre-incident market position.

Manufacturers should understand that the difference between these event types is not merely definitional — it affects how the claim is assessed, what evidence is required, and what costs are recoverable.

The Case for Preparation

Recall specialists consistently observe that the most costly recall events are not necessarily the most serious in terms of the underlying product risk — they are the ones where the response is slow, disorganised, or poorly communicated. Preparation directly influences the outcome across every dimension of a recall: the speed of containment, the accuracy of the traceability exercise, the quality of communication with regulators, retailers, and consumers, and ultimately the cost of the claim.

Recall plans need to exist before the incident

A business that is drafting its recall response at the same time it is managing an active incident will be slower, less consistent, and more likely to make decisions that compound the damage. The recall plan should identify who is responsible for each decision, how regulators are to be notified, how product is traced and retrieved, how retailers and distributors are contacted, and how consumers are communicated with.

Mock recalls and simulation exercises are not optional extras

A plan that has never been tested is a plan that contains unknown gaps. Crisis simulation exercises allow businesses to discover, in a controlled environment, where their systems, processes, and communication chains break down — before a live event exposes those same failures under maximum pressure. The first 24 to 48 hours of a recall response are critical; a business that has rehearsed this window performs substantially differently from one that has not.

Media and crisis communications require advance preparation

The reputational consequences of a recall are heavily shaped by how the business communicates. Prepared messaging frameworks, identified spokespersons, and practised media protocols allow a business to lead the communication of an incident rather than reacting to it. A business that communicates promptly, clearly, and credibly in the early stages of a recall will manage the reputational impact more effectively than one that appears slow, evasive, or inconsistent.

Traceability systems determine the scope of the recall

The ability to identify quickly which batches are affected, where they went, and which customers or retailers received them directly determines whether a recall is targeted and manageable, or broad and chaotic. Robust batch tracking, detailed distribution records, and clear supplier documentation narrow the recall population and reduce cost. Gaps in traceability systems, co-mingling of product, and undocumented distribution chains all expand recall scope unnecessarily.

Supplier management is integral to recall readiness

Many recall events trace back to a supplier’s ingredient, a change in a supplier’s process that was not communicated, or a quality failure in imported raw materials. Businesses that have conducted supplier audits, maintained up-to-date ingredient specifications, and built contractual protections around recall liability are better positioned when a supplier-origin event occurs. Those that have not may find they are managing a recall without the information, contractual support, or financial recovery options they need.

Engaging Your Insurance Cover Effectively

Product recall insurance is most valuable when the policyholder actively engages the support available to them — both before an incident and in the critical first hours of one.

Some product recall policies include access to pre-incident advice, planning support, and expert consultants as part of the cover. This can include assistance with recall plan development, mock recall exercises, food safety training, and audit preparation. These resources are available precisely because insurers understand that preparation reduces the frequency and severity of claims — and businesses that take advantage of them are in a materially better position when an incident occurs.

When an incident does occur, the immediate priority is to activate the right support. Engaging a crisis hotline or specialist recall consultant in the first hours of an incident — before making public statements, before deciding on the scope of a withdrawal, and before committing to a course of action — allows decisions to be made with expert input rather than under pressure alone. Following that initial response, the broker should be notified promptly so that the insurer can be informed and a loss adjuster engaged to support the claim process.

Businesses should also be aware of their notification obligations under the recall framework. FSANZ and state food safety regulators have established processes and timelines for recall notifications, and failing to meet these obligations can create regulatory exposure on top of the underlying incident.

Practical Steps for Food and Beverage Manufacturers

Drawing together the observations above, there are several areas where food manufacturers can take concrete action now, irrespective of their current level of recall readiness.

First, review whether a written product recall plan exists and, if so, when it was last tested. A plan that pre-dates significant changes in your product range, supply chain, or distribution network may not reflect your current risk profile.

Second, map your supply chain and assess your traceability capability. If a contamination event were identified today, how long would it take to identify the affected batches, trace them to all current locations, and initiate a retrieval? The answer to that question defines your exposure.

Third, review your allergen and labelling management processes. Undeclared allergens have consistently been the leading cause of recalls over the past decade, with 213 incidents reported over a ten-year period. For many businesses, this risk sits in supplier communication, recipe changes, and label approval processes rather than in the production environment itself.

Fourth, ensure your recall insurance coverage is current, understood, and matched to how your business operates today. If your product is used as an ingredient by another manufacturer, confirm whether your policy extends to that downstream exposure. If your distribution reaches international markets, confirm how those markets are treated under your policy.

Finally, speak to your broker about what pre-incident support is available under your product recall policy. The resources that exist to help you prepare may be more accessible than you expect.

Conclusion

Product recall risk in the food and beverage sector is real, rising, and increasingly complex. The businesses that manage recall events most effectively are not necessarily the largest or the best resourced — they are the ones that have invested in preparation, tested their systems, and understood their insurance coverage before the incident began.

Barrack Broking works with food and beverage manufacturers across Australia and understands the operational and risk management challenges specific to this sector. If you would like to review your product recall insurance arrangements, or if you want to discuss how your current coverage aligns with your supply chain and distribution profile, we welcome the conversation.

*This article is general in nature and does not constitute legal, regulatory or food safety advice. Food businesses with specific concerns about recall obligations should contact a specialist Insurance Broker at Barrack Broking.

The post Product Recall: Why Preparation Is the Difference Between Containment and Crisis appeared first on Barrack Broking.

At Barrack Broking, we work with manufacturing clients across Australia and we want to share what is known about this incident, why the manufacturing sector is increasingly targeted, and what it means for how businesses in this space approach cyber risk and insurance.

What Happened

In early June 2026, a Queensland-based food and beverage manufacturer disclosed a cybersecurity incident affecting its operations. Production at multiple facilities was forced to halt, and the disruption cascaded rapidly through its supply chain — with growers, harvesters and logistics operators all impacted as scheduling and intake systems went offline.

The company publicly confirmed it had activated its incident response immediately. Interim manual processes were put in place to support critical functions where possible, and within a matter of days a limited manual operation recommenced at one facility. However, key operational systems remained under restoration for a period, with the business advising supply chain partners not to resume normal activity until further notice.

The attack was subsequently claimed by a ransomware group known as “The Gentlemen,” which listed the business on its dark web data leak site. As is common in this type of incident, no data had been published at the point the claim was made — a circumstance that typically indicates ransom negotiations are continuing. Whether any data was ultimately compromised has not been publicly confirmed by the business.

It is also not publicly confirmed whether the attackers reached the company’s operational technology (OT) systems directly, or whether the shutdown of physical operations was caused indirectly by the encryption of IT systems that those physical processes depend upon.

About the Threat Group

The Gentlemen is a Ransomware-as-a-Service (RaaS) operation that emerged in approximately mid-2025 and has rapidly become one of the most prolific ransomware groups operating globally. Tracked by Microsoft under the designation Storm-2697, the group had claimed more than 580 victims across 77 countries by early July 2026, with 380 of those victims added in 2026 alone. That volume places it as the second most active ransomware operation in the world by published victim count as of that date.

Of the 580 victims claimed by the group, 103 operated within the manufacturing industry — a sector the group has specifically targeted given manufacturers’ low tolerance for operational downtime and the pressure that creates to resolve an incident quickly.

The group operates through an affiliate model, offering affiliates an unusually high 90% share of ransom payments to attract technically capable operators. Cybersecurity researchers have identified the group’s use of malware with worm-like lateral movement capabilities, meaning it can spread rapidly across connected systems once inside a network. The group has also been linked to a custom toolkit designed to disable endpoint detection and response (EDR) security software, complicating victims’ ability to contain an attack once it has commenced.

Why Food and Beverage Manufacturing Is a High-Value Target

This incident illustrates several characteristics that make food and beverage manufacturers — and manufacturers generally — particularly attractive targets for ransomware groups.

Operational downtime is immediately costly

Manufacturing businesses operate on tight production schedules, with seasonal peaks, perishable inputs, and contractual supply commitments. Shutting down even one facility for days has direct financial consequences that can be measured in lost production, spoilage, contract penalties, and reputational damage with buyers and supply chain partners.

IT and operational technology are increasingly interconnected

Modern food and beverage facilities rely on digital systems to manage everything from cane supply coordination and logistics scheduling to production planning and historian databases. When these IT systems are encrypted or disrupted, physical operations — even those not directly connected to a network — can be forced to stop because operators lose the visibility and data needed to run processes safely. Researchers have noted that in the Queensland incident, core enterprise and logistics platforms were compromised, forcing a physical shutdown without the attackers necessarily touching a single piece of industrial control equipment directly.

Supply chains multiply the impact

A cyberattack on one manufacturer doesn’t stay contained to that business. Growers, harvesters, transport operators, and downstream buyers are all affected when intake systems, scheduling tools, or logistics platforms go offline. This amplifies both the urgency to resolve the incident and the reputational exposure.

Seasonal timing can be exploited

This attack occurred at the beginning of a critical production season. The timing meant the business faced its most costly possible window of disruption — a pattern that cybercriminals are known to use deliberately to increase the pressure on victims to pay.

The Double Extortion Model

Modern ransomware attacks frequently involve what is known as “double extortion” — where attackers both encrypt the victim’s data and exfiltrate a copy of it before triggering the encryption. The victim is then threatened with publication of the stolen data if they don’t pay the ransom. This means the question of whether to pay goes beyond recovering access to systems — it also involves the risk of sensitive business information, customer data, or commercial contracts being published on the dark web.

For food manufacturers, exfiltrated data could include customer lists, supplier agreements, pricing structures, production data, and employee records. The consequences of that data being published extend well beyond the initial operational disruption.

What This Means for Your Cyber Insurance

Cyber insurance exists precisely to respond to incidents like this — but the coverage you have, and how well it responds, depends significantly on how your policy is structured and what controls you have in place. There are several insurance considerations that manufacturers should be actively reviewing in light of this type of incident.

Business interruption coverage

A manufacturing cyber policy should respond to the loss of revenue and additional costs incurred during a shutdown caused by a cyberattack. The scope of this coverage — how it’s triggered, what the waiting period is, and whether it extends to supply chain disruption — varies significantly between policies. If your production depends on digital scheduling, logistics, or inventory management systems, you should be confident that a disruption to those systems would trigger your business interruption cover.

Ransomware and extortion coverage

Most cyber policies include cover for ransomware payments and extortion demands, but the terms — including sublimits, approval requirements, and conditions around law enforcement engagement — need to be clearly understood before an incident occurs. Responding to a ransom demand under time pressure is not the moment to be reading your policy for the first time.

Data breach and notification costs

If data is exfiltrated in addition to systems being encrypted, the business may have obligations under the Privacy Act and the Notifiable Data Breaches scheme. Cyber policies typically cover the cost of forensic investigation, legal advice, and notification — but coverage limits and conditions vary.

Operational technology and industrial systems

Standard cyber policies can vary in how they treat claims arising from OT or industrial control system disruption, particularly where physical production processes are affected. Manufacturers should specifically confirm how their policy responds to cyber events that cause physical operational shutdowns.

Reputational and supply chain impact

The flow-on cost to supply chain partners and the reputational damage with buyers is rarely covered directly, but understanding where your policy’s boundaries are is important for understanding the total risk exposure your business carries.

What Businesses Can Do Now

While insurance is a critical component of cyber risk management, it works best alongside appropriate preventive measures. Cybersecurity researchers have identified several practical steps that manufacturing businesses can take to reduce their exposure to the type of attack seen in this incident.

Multi-factor authentication across all systems — particularly VPNs, remote access gateways, and email — reduces the risk of credential-based attacks, which remain one of the most common initial access methods for ransomware groups. Keeping systems patched and up to date addresses known vulnerabilities that groups like The Gentlemen are known to actively exploit. Maintaining tested, offline backups that are not connected to primary systems is the single most effective way to reduce the operational impact of a ransomware attack. Segmenting IT and OT networks reduces the risk that an attack on enterprise systems cascades into physical production processes.

These are the same controls that cyber insurers are increasingly assessing as part of their underwriting process, which means businesses that have invested in them are in a stronger position both to prevent an incident and to access coverage when they need it.

Getting the Right Advice

Cyber risk for manufacturers is not a simple product category, it sits at the intersection of business interruption, liability, regulatory obligation, and operational risk in ways that need to be carefully matched to how your business actually operates.

If you’d like to review your current cyber insurance arrangements in the context of incidents like this, or if you want to understand specifically how your policy would respond to a ransomware or operational shutdown event, Barrack Broking is available to help. Our team works with manufacturing clients nationally and understands the operational realities that make this sector’s risk profile distinctive.

*This article draws on publicly available information from cybersecurity research sources and published incident reporting. It does not constitute legal or technical cybersecurity advice. Businesses experiencing a cyber incident should engage a specialist incident response provider immediately.

The post Ransomware Hits Queensland Food Manufacturing: What the Sector Needs to Know appeared first on Barrack Broking.

A commercial insurance broker differs from an insurance company as they represent your business and serve as an advocate for your company in the event of a claim. A broker will provide tailored advice and solutions designed for your unique circumstances as a commercial enterprise to ensure you have the right protection in place.

With Barrack Broking, our team of experts work across Australia to advise on insurance solutions for your property assets, so you can rest assured that your business is taken care of if a claim arises. 

Barrack Broking is taking the mystery out of the world of insurance. 

What a Commercial Insurance Broker Actually Does

In simple terms, a commercial insurance broker will identify the unique risk profile of your business to ensure you have the adequate amount of coverage to protect you from those risks. 

When running a commercial enterprise, we know risks are inherent in your day-to-day operations. The scope of that risk depends on a number of factors relating to your business, such as: your business structure, the sector you operate in, and your annual turnover. 

That’s why Barrack Broking seeks to understand the ins and outs of your business, in order to offer practical solutions grounded in real-world application to ensure your company is set-up for long-term success.

Our team work through a four-step process when approaching commercial insurance:

1. Risk Assessment: We’ll start by understanding your business and scenario to identify your risks.
2. Policy Selection: We’ll develop a tailored strategy and program that is detailed with cost and your coverage options, using our market knowledge and expertise. 
3. Market Analysis: We’ll head out to the market to negotiate a policy with the right insurer that covers you based on the identified risks.
4. Ongoing Advocacy: We’ll be here for you all year round. Whether you need claim support, policy clarification or general advice, you can rely on Barrack Broking to support you. 

Insurance Broker vs Direct Insurer

Whose interests are represented?

Direct Insurer: The profits of the insurance company, every time.
Insurance Broker: The financial interests of your business.

Number of insurers compared

Direct Insurer: Limited to one, from their own policy shelf.
Insurance Broker: A comprehensive market comparison with multiple insurers.

Policy Wording Review

Direct Insurer: A take it or leave it approach.
Insurance Broker: Tailored clauses that are negotiated to your company’s needs.

Claims Support

Direct Insurer: Involves negotiating with their internal executives.
Insurance Broker: Your broker is your advocate throughout the claims process.

Renewal Advocacy

Direct Insurer: Automatic annual price increases
Insurance Broker: We go back to the market to ensure your premium remains competitive.

Industries and Risks We Cover

At Barrack Broking, we’re committed to providing you with expert advice and matching you to an insurance policy that works for you and your business, working across a variety of industries, including:

• Care and Community Sectors: Commercial protection for aged care providers and childcare operators customised to the unique risks of the care industry.
• Professional Services: Tailored professional indemnity and cyber insurance coverage for the professional sectors, including accountants and engineers.
• Healthcare: medical malpractice insurance for practitioners and clinics.
• Property and Real Estate: Our commercial property insurance insurance experts provide comprehensive asset protection for commercial real estate portfolios. 

Where We Operate

Barrack Broking has specialists positioned around the country, ensuring you get essential local knowledge you need from your insurance broker.

From on-the-ground risk assessments to face-to-face support, we have dedicated teams across: Sunshine Coast, Newcastle, Melbourne, Toowoomba, Bundaberg, Adelaide, Brisbane, Cairns, Sydney and Gold Coast.

Frequently Asked Questions

What does a commercial insurance broker do for a small business? 

As a small business, you should see a broker as your outsourced risk manager. By outlining your unique exposures and sourcing the appropriate coverage to mitigate these exposures, your commercial insurance broker manages any claims on your behalf so you can focus on running your business. 

Is a broker more expensive than going direct?

Not necessarily. Brokers may charge an additional service fee or receive a commission from an insurer, but in the long-term they save your business more by preventing under-insurance. With insider market knowledge, they are well positioned to negotiate lower pricing while making sure any legitimate claims are paid out in full. 

Do you work as a commercial property insurance broker?

Yes. Barrack Broking are proud to offer commercial property insurance broking to an extensive portfolio of Australian businesses across a range of industries. To find out more, explore our Who We Help page.

The post What Does a Commercial Insurance Broker Do? appeared first on Barrack Broking.

At the same time, food production insurance is becoming a more important discussion for businesses operating across manufacturing and agribusiness sectors.

For many manufacturers and stockfeed producers, the issue is no longer simply whether insurance exists — it is whether existing cover still reflects the scale and complexity of the business today.

Operational changes often happen gradually. A business may introduce new product lines, expand warehousing, increase production capacity, or move into new distribution channels over time. Food production insurance programs do not always evolve alongside those operational changes.

That gap can become more noticeable when claims occur or insurers reassess risk.

Why Food Production Insurance Is Changing

Food manufacturing has always carried contamination and liability exposure, but insurers are now looking more closely at broader operational controls and supply chain risk.

Areas receiving greater attention include:

• traceability systems
• supplier verification
• product testing
• transport and storage conditions
• recall preparedness
• quality assurance processes

Part of this reflects how interconnected food supply chains have become. A single issue involving ingredients, packaging, labelling, or transport can quickly affect multiple businesses downstream.

Food production insurance is also becoming more heavily influenced by operational governance. Businesses with outdated procedures or limited operational documentation may find policy terms tightening over time, particularly where product recall exposure exists.

This is becoming more noticeable across businesses experiencing rapid growth or operational expansion.

Product Recall Exposure Is No Longer Just a Compliance Issue

Many businesses still think about recalls primarily as a regulatory event. In reality, recalls often become broader operational and commercial problems.

A contamination issue or labelling error can lead to:

• stock withdrawals
• customer notifications
• production delays
• contract disputes
• reputational pressure
• supply chain disruption

The direct cost of removing products from the market is often only one part of the impact.

What creates longer-term pressure is usually the disruption surrounding the event — retailer relationships, supplier confidence, customer trust, and production continuity.

Because of this, food production insurance discussions increasingly focus on how a business would respond operationally if an incident occurred.

Questions often include:

• Can products be traced quickly?
• Are supplier records maintained properly?
• Is there a documented recall process?
• How quickly can batches be isolated?
• Are third-party manufacturers monitored effectively?

Businesses involved in private label manufacturing or large-scale distribution arrangements are often seeing even closer scrutiny because the downstream exposure is broader.

Recent reporting from Food Standards Australia New Zealand continues to identify undeclared allergens and contamination among the leading causes of recalls in Australia.

What Stockfeed Manufacturers Should Be Reviewing

Stockfeed manufacturers face many of the same operational pressures, although the exposure can extend further into agricultural supply chains. Growers supplying food producers can speak to our farm insurance broker team.

Cross-contamination remains a major concern, particularly where different feed products or additives are processed within shared environments.

A production issue affecting livestock health can create flow-on consequences involving:

• producers
• processors
• transport operators
• agricultural suppliers
• contractual partners

For insurers, operational controls become especially important in these environments.

Areas commonly reviewed include:

• ingredient sourcing
• contamination controls
• cleaning procedures
• batch testing
• transport conditions
• supplier management

Businesses introducing new formulations or increasing production volumes sometimes underestimate how much their exposure has changed over time.

This is one reason food production insurance should be reviewed regularly as operations evolve.

Why Insurance Structures Often Fall Behind Operations

One of the more common patterns across manufacturing businesses is that operational growth happens progressively while insurance arrangements remain largely unchanged.

A business that once operated from a single site may now have:

• multiple storage locations
• outsourced production
• interstate distribution
• export exposure
• automated systems
• larger contractual obligations

Each of those changes can alter risk in different ways.

Food production insurance should reflect how products are manufactured, stored, transported, and distributed in practice — not how the business operated several years ago.

This becomes particularly important when reviewing:

• product recall limits
• business interruption calculations
• stock values
• contract liability exposure
• machinery replacement costs
• cyber exposure linked to production systems

Manufacturing businesses are also becoming more reliant on digital systems across production, inventory, logistics, and administration. A cyber incident now has the potential to interrupt operations even where no physical damage has occurred.

What Insurers Are Looking for in 2026

Across food manufacturing and agribusiness sectors, insurers are placing greater emphasis on operational governance and risk management maturity.

This does not necessarily mean highly complex systems. In most cases, insurers simply want evidence that operational risks are understood and actively managed.

Areas commonly assessed include:

• HACCP compliance
• supplier governance
• incident response procedures
• business continuity planning
• cybersecurity controls
• maintenance processes
• quality assurance documentation

Businesses with stronger operational controls are generally in a better position during both underwriting and claims discussions.

As insurer expectations continue to evolve, many businesses are reassessing whether their food production insurance still reflects current operational realities.

Final Thoughts

Food production businesses operate within tightly connected supply chains where operational problems can escalate quickly.

As businesses grow or diversify, food production insurance programs do not always keep pace with those operational changes. Over time, that can create gaps that only become visible during a claim or insurer review.

For many food manufacturers and stockfeed producers, this is becoming a useful time to reassess whether existing insurance arrangements still properly reflect:

• how the business operates
• where liability may arise
• how products move through the supply chain
• how a recall event would be managed in practice

If your operations have changed significantly over recent years, it may be worth reviewing whether your food production insurance still aligns with how the business operates today.

Get in contact with the Barrack team here: https://www.barrack.com.au/

FAQs

What does food production insurance typically include?

Food production insurance can include public and product liability, property insurance, business interruption, machinery breakdown, product recall, cyber insurance, and transit cover.

The structure should reflect the operational realities of the business rather than relying on generic manufacturing policies.

Why is product recall insurance important?

Recall events often involve far more than damaged stock. Costs can include logistics, disposal, customer communication, crisis management, and production disruption.

The operational response to a recall can significantly influence the overall financial outcome.

Are stockfeed manufacturers exposed to product liability risk?

Yes. Contamination issues, formulation errors, or ingredient problems can create downstream exposure affecting livestock producers and supply chain partners.

This is why traceability and operational controls are important considerations for insurers.

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