What if your business-critical equipment is ready, but your insurance provider suddenly says “no” to cover? That’s the reality many face during insurance embargoes — and it could bring your equipment finance to an unexpected halt.
What are Insurance Embargoes?
When insurers temporarily stop offering new cover in certain areas or for specific risks, it’s known as an insurance embargo. These are common during periods of heightened risk — such as natural disasters, bushfires, floods, or severe storms.
For businesses, this can create serious challenges, especially if you’re in the middle of securing equipment finance. Why? Because lenders require proof of insurance before they’ll release funds.
How insurance embargoes affect finance approvals
- Delays in settlement: If you can’t provide an insurance certificate, lenders may refuse to proceed with the final settlement, delaying your delivery/pick up schedules.
- Missed opportunities: In industries where timing is everything — like transport or construction — this could mean missing out on contracts or deals.
- Increased costs: Once the embargo lifts, premiums may be higher due to increased risk in the affected area.
- Cash flow pressure: Businesses relying on quick access to equipment may face unexpected downtime or project delays.
Insurance embargoes are one of the most common causes of finance delays due to insurance restrictions, especially in high-risk zones during natural disaster seasons.
Plan ahead to reduce disruption
You can’t control when an embargo is announced, but you can prepare:
- Work with experienced insurance brokers: Insurance brokers understand these types of circumstances and can help you navigate through scenarios.
- Maintain accurate risk records: Demonstrating strong risk management (like flood protection, fire safety, or asset monitoring) can speed up approvals.
How PMG Finance helps you navigate Embargoes
At PMG Finance, we know how critical timing is for business purchases. That’s why we:
- Coordinate with insurers early in the finance process to spot potential embargo risks.
- Work with a broad lender panel, many of whom understand regional and seasonal challenges.
- Keep communication flowing between you, the lender, and the insurer so nothing slips through the cracks.
✅ Insurance embargoes can stall equipment finance — but with the right planning and support, your business can stay on track.
📞 If you’ve got equipment on order or are planning an upgrade, now’s the time to talk with our team. We’ll help you stay prepared and keep your purchase and delivery plans on track — no matter the conditions.
📌If you have any concerns or want to discuss your situation, reach out to us today on 07 4639 1011.
DISCLAIMER: The above content is to provide general information and does not constitute financial, legal or other advice. This means that duties and requirements imposed on people who give financial advice do not apply to this content. For advice contact your accountant or legal advisor.