Are business insurance premiums tax deductible in Australia?

Yes, you can generally claim the cost of business insurance premiums as a tax deduction. The Australian Taxation Office (ATO) classifies these premiums as operating expenses provided the insurance is used for business purposes to earn your income.

Do I need public liability insurance if clients never visit my home?

Yes, you should still consider public liability insurance even if you do not have clients visiting your premises. This cover protects you against claims for property damage or personal injury that you may cause to third parties while working off-site, such as at a client's office, a cafe or a public event.

Is workers compensation mandatory for a sole trader with no employees?

No, you are generally not required to have workers compensation insurance if you are a sole trader with no employees. As a sole trader, you are not considered an employee of your own business, though you must take out a policy as soon as you hire staff or certain contractors.

Does home-based business insurance cover my laptop when I work remotely?

Yes, most business insurance packs can include 'portable equipment' or 'general property' cover for items used away from your home. This ensures that essential tools like laptops, tablets and mobile phones are protected against theft or accidental damage while you are travelling for business.

Do I need specific insurance if I sell home-made products online?

Yes, you should obtain product liability insurance if you manufacture, repair or sell physical goods from your home. This protects your business if a product you supply causes injury, illness or property damage to a customer, which is a risk regardless of whether you sell from a physical storefront or an online platform.

Will running a business from home affect my residential building insurance?

Yes, running a business from home can potentially void your residential building insurance if you do not notify your provider. While many insurers allow for a simple home office, activities involving high-value stock, specialist equipment or frequent visitors may require a different policy or a specific commercial endorsement.

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Running a business from home can void your residential building insurance unless you notify your insurer or take out a commercial endorsement.
Public liability cover is still worth having even if clients never visit, as it protects you when working off-site at client offices, cafes or events.
Portable equipment cover can extend protection to your laptop, tablet and phone while you're working remotely or travelling for business.
Business insurance premiums are generally tax deductible as operating expenses, and product liability cover is essential if you sell home-made goods.

What does home business insurance cover?

When shopping for an insurance policy for your home business you need to consider the nature of your business and the potential risks you face. Cover options and features will vary from one policy to the next, but home business insurance policies typically include cover for some or all of the following:

Public and products liability. This covers your business when a third party is seeking damages for personal injury or property damage that has occurred as a result of your business activity or the products you sell.
Material damage. Protect against damage to your business building and contents caused by a range of unforeseen events, such as floods or fires.
Business interruption. This cover protects your business against the loss of revenue resulting from an interruption in your business activities. For example, if a storm causes extensive damage and your business can no longer trade or is forced to operate in a limited capacity, business interruption insurance provides cover for any shortfall in profits.
Theft. Theft cover offers protection against the theft or vandalism of business property and equipment. You can also elect to take out cover for loss of money, a feature which also includes cheques and credit cards.
Property. This covers the accidental damage of business equipment.
Personal accident. If you or one of your employees is involved in an accident that leads to them becoming permanently disabled or even dying, a benefit will be paid under this type of cover.

What isn't covered by home business insurance?

Home office business insurance policies have a number of exclusions. Exclusions on policies will generally differ from one insurer to the next, but claims will typically not be paid if:

They relate to the destruction, corruption or misappropriation of electronic data
They relate to damage caused by a computer virus
They relate to damage caused by a bushfire or a named cyclone
They relate to your failure to comply with any relevant statutory obligations or laws
The loss or damage to your buildings, contents or stock occurred while buildings are subject to construction, erection, alterations, repairs, maintenance or demolition.

They are related to war, invasion, civil insurrection or evolution
They are for consequential loss of any kind
They are false or fraudulent
You, or someone else with your knowledge, intentionally cause the loss or damage
They relate to acts of terrorism

What type of business insurance do I need?

The exact type and level of cover you need will depend on the nature of your home-based business. Ask yourself what risks your company faces. If a potentially damaging event did occur, what would the financial consequences be for your company? Will you need public liability cover for clients and customers who visit your office? Will you need cover for your computer equipment and office machinery? What about workers' compensation cover, protection against fire and storm damage, or cover for costs resulting from business interruption?

When shopping for your insurance policy, ask yourself these questions:

Do you have employees? Will they need workers' compensation?
Do you have vehicles which are used for business purposes?
Do you offer advice or a professional service to your clients?
Do you have the cash and resources to survive a business interruption? For how long?
How much expensive equipment do you have in your home-based office?
Do you frequently store expensive business-related goods in your home or car?
Is your home office particularly vulnerable to specific natural disasters?

Talk to a broker about home business insurance

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Written by

Alex Reid

Expert

Alex Reid is Finder’s business insurance cadet. He has a Master of Marketing from the University of Technology Sydney, with a background in business and sales. When not writing about business insurance for Finder he's a keen scuba diver, recently completed his 200th hour underwater and his PADI Divemaster certification. Before working at Finder he lived in Hangzhou China, where he studied Mandarin and Chinese culture. See full bio

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2 Responses

RoseJanuary 29, 2025

We run an accommodation business from home and would like to insure our home mainly against a bush fire, not all the other stuff and of course public liability in case the guest falls over during their stay. We also offer our guests the option to join a yoga class in the afternoon, this is my personal yoga class (public not invited) and I do have professional indemnity separate for this. Can you help with this?

Finder

SarahFebruary 4, 2025Finder

Hi Rose, we’re a comparison and review site, so we can show you a number of options that might be suitable. To get a quote, you can click the black button at the top of the page that says “Get online quotes” and you can start the process right away. You may also want to speak to a broker, who can give you personalised advice and quotes – you can click the “speak to a broker” button to get the conversation started. Hope this helps!

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Business at home insurance

Running a business out of your home? Protect yourself with an insurance policy designed for home businesses.