Types of Business Insurance

To ensure your business gets the protection it needs, we've laid out the different types of business insurance you can take out, what's mandatory, the costs and more.

Is insurance compulsory for businesses?

There are usually three types of insurance:

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What types of business insurance can I get in Australia?

There are a number of kinds of business insurance available in Australia, all of which protect you for slightly different risks and dangers. Here's a clear breakdown of what they do:

Liability

Liability cover protects you from the numerous legal risks you encounter when you run your own business. Depending on the type of business you run, you can get liability cover with the following types of insurance:

• Professional indemnity. This protects businesses that provide specialist services or professional advice by covering you for lawsuits and financial losses that result from a client following your advice or receiving your service. For example, if you're a builder and it's found that there are major structural faults with the work you've done, you might get sued. A professional indemnity insurance policy would help cover the legal costs.
• Public liability. If someone makes a claim against you for any injury or damaged belongings that your business activities cause them, public liability insurance can cover you for the costs involved. For example, if a customer were to slip and fall on your property, this would cover you.
• Product liability. This protects you for loss or damage claims made against you caused by products your business sold or supplied. It's often included in a public liability policy and covers you for the relevant legal costs.
• Management liability. This is tailored to directors and managers, and it can cover you for claims made against you for mismanagement, discrimination and other risks associated with managing a company.
• Cyber liability insurance. If your business relies on technology to operate, cyber insurance can cover you for claims made against you due to cyber attacks. It can cover you for damaged hardware, legal costs, damaged reputation and more.

Assets and income

Another important part of running a business is being able to protect everything that you own and the money you make from it. Some of the policies you can get include the following:

• Building and contents. Covers damage or loss to the building you operate your business in and its contents.
• Theft. Covers you against loss or damage to your contents or stock as a result of theft, burglary or deception.
• Money. Covers the theft of your money from your business premises, during transit and, in some cases, at your home. This is generally separate from theft cover.
• Commercial vehicle. A choice of third-party property, third-party fire, theft or comprehensive cover for your business vehicle.
• Stock deterioration. Covers deterioration of goods if a freezer machine or a refrigerator breaks down.
• Glass. Covers the cost of replacing broken external or internal glass and glass items.
• Employee fraud or dishonesty. Covers losses suffered as a result of dishonest actions by your employees.
• Machinery/equipment breakdown. Covers the repair or replacement cost of machinery and equipment that breaks down.

Business interruption

It's also possible to get cover for interruptions that can impact or prevent you from earning an income. These types of business insurance protections can often be added to a policy and include the following:

• Business interruption. If a natural disaster like a storm negatively impacts your business operations, business interruption can cover you for losses suffered and ease your financial losses.
• Tax audit. This covers the cost of any ATO-prompted investigation or audit into your tax liability. It can pay for you to hire an accountant or tax agent.

What type of insurance does my business need?

The right insurance for your business will depend on several factors, including the kind of business you are in, its size and structure, and the industry you belong to. To narrow it down, here are some of the questions you might need to ask yourself as a business owner:

Key questions	Answer	Cover types you may need:
Do you make goods that are sold to the public?	Yes	Product liability insurance
Do you serve customers in a public place or at your premises?	Yes	Public liability insurance
Do you give advice in a professional capacity?	Yes	Professional indemnity insurance
Do you have staff working for you?	Yes	Workers compensation, employee fraud or dishonesty insurance
Do you have any specific things you need protected?	Yes, I have machinery	Machinery breakdown insurance, electronic equipment insurance.
Do you do most of your business online?	Yes	Cyber liability insurance

The answers to questions such as these can give you an indication of where your main exposures are as a business and the kinds of business insurance you might need.

How much does a policy cost?

Like most types of insurance, it comes down to your specific circumstances. The amount you pay for cover will depend on what insurance you need, the type of business you run, how many people you employ and where you operate.

To give you an idea though, the tables below outline the average costs for professional indemnity insurance and public liability. For example, the average cost of the former for a self-employed tax agent was $55.58 a month, based on quotes we took in February 2025. Public liability premiums can vary widely depending on your industry, business size and risk profile.

Professional indemnity insurance

Insurer	Yearly cost	Monthly cost	Excess payable on claims
	$684.75	$57.06	$1,000
	$511.50	$42.63	$0
	$1,074.56	$89.55	$0
	$430.65	$35.89	$2,500
	$563.78	$46.98	$1,000
	$736.73	$61.39	$750
Average cost	$667.00	$55.58	n/a

Data was taken from our quoting engine in February 2025 based on a sole trader tax agent looking for $250,000 in professional indemnity insurance cover.

Public liability insurance

Industry	Food	Food	Construction	Construction
Employees	5	10	10	30
Estimated annual revenue	$200,000	$400,000	$500,000	$1,000,000
Insurer 1	$45.20	$63.21	$508.75	$1,003.75
Insurer 2	$140.01	$223.58	n/a	n/a
Insurer 3	$160.41	$311.67	n/a	n/a
Average cost (per month)	$115.21	$199.49	$508.75	$1,003.75

Quotes taken from BizCover's Insurance engine in December 2024. Policies for food industry come with an excess of $500.

How to apply for a policy

Applying for a business insurance policy can be stressful if you do it yourself. Our Business Insurance Finder™ makes it easier though. This lets you get personalised quotes, compare policies side by side and tailor coverage to your needs. You'll be asked a few questions to help determine what kind of insurance you want or need and you'll also be asked a few simple questions about your business, including how many employees you have and your estimated annual revenue.

Alternatively, if you don't want to do it yourself, you can get a business insurance quote from a broker by filling out the form below. Brokers can be helpful because they're insurance experts and can make sure you're getting the cover your business needs. They'll also take the time to work out the ins and outs of your business.

Talk to a broker about business 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.

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Frequently asked questions

• Are business insurance premiums tax-deductible in Australia?

  Yes, business insurance premiums are generally tax-deductible as an operating expense. However, if a policy covers both business and private use (such as a vehicle or home-based business), you can only claim the portion that relates to your business activities. You should maintain tax invoices to support your claims with the ATO.

• Do sole traders need workers' compensation insurance for themselves?

  Generally no, as sole traders aren't considered employees. However, rules vary by state; for example, some jurisdictions like QLD or NSW offer specific personal injury or opt-in options for self-employed individuals. Because standard workers' comp is often unavailable, it is highly recommended that sole traders consider Personal Accident and Illness insurance to protect their income if they are unable to work.

• Can I bundle different business insurance covers into a single policy?

  Yes, most Australian insurers offer a 'Business Pack' or 'Business Package' that allows you to combine multiple covers like public liability, theft, glass and general property into one policy. Bundling your insurance often results in lower overall premiums and simplified policy management compared to buying separate standalone covers.

• Does standard home and contents insurance cover a home-based business?

  No, standard home insurance policies typically exclude or strictly limit coverage for business-related liability, specialised equipment and stock held at home. If you run a business from your residence, you must usually notify your insurer and take out specific home-based business insurance or a business pack extension.

• What is a Certificate of Currency?

  A Certificate of Currency is a formal document issued by your insurance provider that acts as proof your business has an active insurance policy. It details the type of cover, the policy limit, the period of insurance and is frequently required by landlords, local councils and major clients before you can start work.

• Does cyber insurance cover data breaches caused by employee mistakes?

  Yes, most cyber insurance policies in Australia cover data breaches resulting from human error or internal mistakes in addition to external malicious attacks. This typically includes the costs of forensic investigations, legal advice, customer notifications and regulatory fines associated with a breach.

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