From cafés in Terrigal covering public liability, to manufacturers in Somersby protecting plant and equipment, to tradies across the Coast insuring vehicles and tools, insurance underpins almost every business decision.
Yet for years, local businesses have been paying significantly more than their counterparts in other states, and it is getting worse.
A key driver of these higher costs is the way New South Wales funds its emergency services through the Emergency Services Levy (ESL).
Unlike every other mainland state, NSW continues to apply this levy directly to insurance premiums, inflating costs for businesses that are doing the right thing and maintaining appropriate cover.
This system is not just outdated. It is fundamentally flawed. Because the levy is calculated as a percentage of insurance premiums, businesses already facing higher risks or higher operating costs are hit hardest, compounding affordability pressures.
It is no surprise that insurance has been the number one cost concern for businesses in recent years.
The NSW Government is now considering reform options, which is welcome. The release of an options paper outlining five alternative funding models signals that change is coming.
These models would largely shift the funding base away from insurance and towards broader property-based charges, with the aim of making the system fairer and more sustainable.
In principle, reform is needed, and overdue. But the detail matters.
Early modelling indicates that while some households may benefit from lower costs under a new system, many businesses could face significant increases, depending on how the levy is redesigned and distributed.
This is a real concern for Central Coast operators already grappling with rising energy prices, workforce shortages and cost-of-living pressures flowing through to wages and demand.
For a small business operating on tight margins, an additional $500 a year in insurance-related costs is not trivial. For larger industrial operators, increases of over $1,000 could further constrain investment, hiring and expansion.
That is why Business NSW has been clear: reform must not simply shift the burden from one group to another. It must genuinely reduce costs and improve outcomes across the board.
There is also a broader issue at play. The current ESL has long been criticised for distorting behaviour, effectively penalising businesses and households that take out insurance, while discouraging adequate coverage across the community.
This contributes to underinsurance, leaving both businesses and the wider economy more exposed to natural disasters and disruptions.
Done properly, reform could fix this.
A more equitable funding model, one that spreads the cost across the broader property base, has the potential to improve insurance affordability, increase coverage and strengthen resilience across regions like the Central Coast.
But getting there requires careful design, proper consultation and a clear focus on economic impact.
Central Coast businesses are not asking for special treatment. What they are asking for is fairness.
Scott Goold is Regional Director at Business NSW Central Coast.
