Business contents insurance isn't legally required in Australia, but most commercial leases make it mandatory before you can occupy a premises.
Underinsuring your contents can trigger an 'average clause', meaning the insurer pays out a reduced amount even on small claims.
Most policies cover customer items in your care, custody or control, plus glass cover for shopfronts is usually included or available as an add-on.
Adding security features like back-to-base alarms, CCTV and deadlocks can lower your premium by reducing theft and vandalism risk.
What are business contents?
Business contents are everything you use in the office or wherever you operate your business. This can include computers, office equipment, furniture and equipment, as well as the personal belongings of customers for which you are responsible.
If you add portable contents cover to your policy (sometimes known as portable equipment insurance) business contents can also include the items you take out and about with you, like your laptop, mobile, camera and tablet.
What's covered by business contents insurance?
Business contents insurance is designed to protect the possessions and equipment kept at your business's premises. It can cover you for loss or damage caused by:
Covered
Storms
Lightning
Earthquakes
Theft
Explosions
Breakage of glass
Not Covered
General wear and tear
Theft if doors or windows were left unlocked
Loss or damage to electronic data
Loss or damage due to intentional acts
Unoccupancy (unless they agree otherwise with you)
Known defects
Optional add-ons
Cover for items at a different location. You can also take out cover for contents that have been temporarily moved to a different location away from your business premises.
Breakdown of machinery. Breakdown of machinery and electronic equipment can be added on with some policies.
Make sure you read the general exclusions section of the insurer's PDS
2022 Finder research shows that 23% of Australians can't be bothered reading the PDS. It may be boring but it's worth it in the long run.
How much does business contents insurance cost?
If you're looking to take out insurance cover for your business contents, keep in mind that there are a wide range of factors that can influence just how much your policy will cost. Of course, the amount of insurance you wish to take out is obviously going to have a bearing on how much you have to pay for premiums, so it's important to work out exactly what level of cover you need and can afford.
Size of Business
The nature and size of your business will also play a big role in determining your premiums. Some businesses, for example a firm that specialises in earthmoving services, will most likely need cover for a range of heavy machinery that is much more expensive than the cover needed for a small office supplies business. Some industries obviously attract larger sums insured, while it also stands to reason that larger businesses will have more to insure.
Claims History
Insurers will take your business's claims history into account when assessing your application. If storm damage or burglary have caused problems for you in the past, this could affect the cost of your future insurance premiums. In addition, your business contents insurance could cost more depending on where your business is located. As an example of this, storm damage can pose much more of a regular threat in some areas of Australia than it can in others.
Other types of insurance to be aware of
If you run a business, there are a few other important types of insurance you need to consider:
Workers compensation insurance. If you have employees, you're required to have this to protect them in case they're in an accident or get ill.
Public liability insurance. This is often compulsory for certain types of businesses and if you're self-employed. It also covers you for third-party death or injury.
Business interruption. Business interruption can cover you for losses if an insured event stops your business from operating.
Third-party personal injury insurance. If your business uses vehicles as part of your business, you need to have compulsory third party (CTP) insurance to cover you against personal injury claims.
Talk to a broker about business contents insurance
Receive a Quote for Business Insurance
If you are ready to speak with a consultant about different business insurance options available, simply enter your details in the form. Keep reading if you want to learn more about the different types of cover available.
No, business contents insurance is not a legal requirement in Australia, but it is often a mandatory condition of a commercial lease agreement. While you are not forced by law to have it, most landlords will require proof of cover for the fit-out and contents before you can occupy a business premises.
Underinsuring your contents may trigger an 'average clause' where the insurer reduces your claim payment in proportion to the amount of cover you missed. For example, if you insure for only half the true value of your equipment, the insurer may only pay out half of any claim you make, even for small losses.
Yes, glass cover is usually included or available as an optional add-on to protect your windows, doors and signs from accidental breakage. This is particularly important for retail businesses as many commercial leases hold the tenant responsible for the replacement of all internal and external glass.
Yes, most business contents policies cover items belonging to customers as long as they are in your care, custody or control. This is a vital feature for businesses such as repair shops, dry cleaners and hospitality venues where you are responsible for the safe keeping of third-party property.
No, business contents insurance is designed to protect physical assets and does not typically cover the cost of restoring lost data or software. To protect against these risks, you should consider a standalone cyber insurance policy or an electronic data processing extension.
Yes, insurers often provide discounted premiums for businesses that have security features such as back-to-base alarms, CCTV and deadlocks. These measures reduce the risk of theft and vandalism, making your business more attractive to insure and resulting in a lower cost of cover.
Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards.
See full bio
Gary Ross's expertise
Gary Ross
has written
559
Finder guides across topics including:
Liability insurance is a broad term that describes a few types of business insurance cover. The type you need will depend on the nature of your business.
Find protective cover for volunteer workers from Australian insurance brands. Find out what is covered and excluded under voluntary workers insurance.
Important information about this website
Finder is a comparison service. We do not compare every product or every provider in the market.
We make money through commercial arrangements with some of the providers on this site. Products marked 'Sponsored', 'Promoted', 'Featured' or 'Advertisement' appear as a result of a commercial arrangement.
Our editorial content, product reviews and any 'Top Pick' designations are prepared independently of these commercial arrangements.
The default order of products in our tables can be influenced by commercial arrangements. You can re-sort or filter using the controls above each table.
Some content on this site may be generated or supported by AI tools. You should verify details directly with the provider.
Finder is one of Australia's leading comparison websites. We are committed to our readers and stand by our editorial principles.
Our comparison service does not include every product or every provider in the market. Some product issuers offer their products under multiple brands or through associated companies. Where we can, we identify the underlying issuer so you can compare like with like, but you should always check with the provider directly to confirm which brand you are dealing with.
Finder is a comparison website and an intermediary. We are not a product issuer and we do not provide personal financial or credit advice. When you click a link to a product, or apply for a product through our site, you deal directly with the product issuer. We may receive a referral fee, commission or other payment from the issuer if you click through, apply or take out a product. We describe these arrangements in more detail under 'How we make money' below.
Product features, fees, terms and eligibility criteria are set by the product issuer and may change. We rely on information supplied by issuers when we present product details on our site. Before you apply for or take out any product, you should confirm the details directly with the issuer.
We earn revenue from Finder in four principal ways:
Referral fees and commissions. When you click a product link, complete an enquiry form or apply for a product through our site, we may receive a referral fee, commission or other payment from the product issuer. We may also receive payment based on the volume of leads or conversions we send to an issuer.
Sponsored placements. Products marked 'Sponsored', 'Promoted', 'Featured' or 'Advertisement' appear as a result of a commercial arrangement between Finder and the issuer. These labels always indicate a paid placement. We do not use them for editorial choices.
Display advertising. Banner advertising, newsletter advertising and similar display ads on our site are paid by advertisers.
Content sponsorship. Some articles, videos and social media posts are sponsored by an issuer and are clearly labelled as such.
Our editorial opinions, product reviews and any 'Top Pick' designations are prepared independently of these commercial arrangements. A 'Top Pick' is an editorial choice made by our writers and editors based on the criteria described on each comparison page. A 'Top Pick' is not a personal recommendation and does not mean the product is appropriate for your circumstances.
If you would like to know whether we have a commercial arrangement with a specific product issuer, please contact us.
When products are grouped in a table or list, the default order can be influenced by commercial arrangements we have with product issuers. In some categories, sponsored or featured products appear in the top positions of the table by default, and are always labelled as such.
Other factors that influence default order include price, fees and features, and (where relevant) our editorial view of the product.
You can re-sort every comparison table using the controls above the table. You can filter by product features that matter to you. The order you see after re-sorting or filtering is not influenced by commercial arrangements.
Some content on this site is generated or supported by artificial intelligence tools, including our AI-powered assistant FinderBot. AI-generated content may contain errors. Please verify important information directly with the product issuer before making a financial decision. For more information about FinderBot, see the FinderBot Terms of Use and FinderBot Privacy Collection Notice.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
