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Small business insurance
The covers an Australian small business usually needs, which ones the law or your contracts require, and how to get quotes for all of them from one set of details. A licensed broker compares our insurer panel.
- Over 60 occupations compared online
- Specialist cover arranged by a broker
- No phone number needed to request quotes
What insurance does a small business need?
Most small businesses start with public liability, then add the covers that match how they earn: professional indemnity if you give advice, a business pack if you have premises and stock, tools and vehicle cover if you work on site, and cyber if you take payments or hold customer data. Workers compensation becomes compulsory once you employ someone.
The ABS counted 2,814,778 actively trading businesses in Australia at 30 June 2026. Insurers price each one on what it does, so the first thing we ask is your occupation.
The covers, by what they protect
| Cover | What it protects | Who usually holds it |
|---|---|---|
| Public liability | Injury to other people, or damage to their property, caused by your business. | Almost every business that deals with the public, clients or sites. |
| Professional indemnity | Claims that your advice, design or service caused a client financial loss. | Consultants, allied health, bookkeepers, designers. |
| Business insurance pack | Your premises, contents, stock, glass, theft and the income you lose if an insured event closes you. | Shops, cafés, salons, workshops, offices. |
| Tools & equipment | Tools and equipment, on site, in the ute or in storage. | Trades and mobile services. |
| Commercial vehicle | The ute, van or car you use for work. | Anyone who drives for the business. |
| Cyber | Data breaches, ransomware and invoice fraud, including the costs of responding. | Any business with card payments, bookings or customer records. |
| Workers compensation | Your employees if they’re injured at work. Compulsory once you employ staff. | Employers, under each state’s scheme. |
business.gov.au describes each of these covers, and notes that professional indemnity is mandatory for some professions.
What’s compulsory, and what’s expected
Only a few covers are required by law: workers compensation once you employ people, compulsory third party insurance to register a vehicle, and professional indemnity for some registered professions, such as tax agents and health practitioners. Our guide on whether business insurance is compulsory sets out each rule and where it comes from.
Public liability isn’t a general legal requirement, but head contractors, councils, landlords and event organisers ask for it before you start, and some licences require it.
Small business in numbers
Australia had 2,814,778 actively trading businesses at 30 June 2026, up 3.1% in a year (ABS). 1,818,575 have no employees, 689,600 employ one to four people and 232,912 employ five to nineteen, so more than 97% of businesses are small by any definition. 460,461 businesses entered during the year, and a new business buying its first public liability or vehicle policy is the most common starting point for the covers on this page.
What affects the price
We don’t show prices on this page. Real premiums depend on your details and each insurer’s underwriting.
Find your industry
Each industry page explains the covers that trade usually holds and any licence rules.
When a broker is the better fit
Some businesses need an underwriter to look at the details, so our insurers don’t quote them online. A licensed broker arranges these instead.
- Builders and high-hazard tradesStructural work, heights and demolition.
- Accountants and financial professionsProfessional indemnity with specific regulator requirements.
- Transport and farmingFleets, trucks and farm programs.
- Larger businessesTurnover over $10 million or 200 or more staff.
How to compare small business insurance
Small business insurance questions
What insurance is compulsory for a small business in Australia?
Workers compensation once you employ staff, compulsory third party insurance to register a vehicle, and professional indemnity for some registered professions. Everything else depends on your contracts, licences and risks.
How much does small business insurance cost?
It depends on your occupation, turnover, staff, claims history and the limits and sums insured you choose. Request quotes to see what your business would pay.
Can a sole trader get small business insurance?
Yes. Sole traders hold the same covers as companies, and public liability is the usual starting point.
Do I need a business pack if I work from home?
If you hold stock or equipment at home, a pack or contents cover may fit. Standard home insurance often doesn’t cover business activities, so check with your insurer.
Do you compare every insurer?
No. A licensed broker compares the insurers on our panel, not every insurer in the market.
What is the best insurance for a small business?
There isn’t one best policy, because the right cover depends on what you do. A café needs a business pack and public liability; a consultant needs professional indemnity; a tradie needs public liability, tools and a vehicle policy. Tell us what your business does and the quote form shows the covers that fit.
Do ABN holders need insurance?
Holding an ABN doesn’t make insurance compulsory, but trading does bring obligations: workers compensation once you employ, CTP with a vehicle, and public liability whenever a client, landlord, council or licence requires it. Most ABN holders hold at least public liability.
Is it illegal to run a business with no insurance?
Only the compulsory covers are required by law: workers compensation for employers, CTP for registered vehicles, home warranty cover for residential building work above the threshold, and professional indemnity for some registered professions. Everything else is required by contracts, leases and licences rather than legislation.
What is business interruption insurance?
It replaces the income your business loses while it cannot trade after an insured event such as a fire, storm or flood damages your premises or equipment, and pays the extra costs of keeping going, for an agreed period. It is a section of a business insurance pack rather than a standalone policy, and it only responds when the underlying property damage is covered.
Do I need employer liability insurance in Australia?
In Australia the cover an employer must hold is workers compensation, run by each state and territory, and it is compulsory from your first employee in every state (NSW and Victoria exempt only the smallest payrolls). There is no separate employers liability policy to buy for ordinary businesses. Public liability covers injury to customers and the public, not to your own staff.
Keep reading
More cover to compare online
Sources
- business.gov.au: Types of business insurance
- ABS: Counts of Australian Businesses, June 2022 to June 2026
- icare: Do I need workers compensation insurance?
- Tax Practitioners Board: Professional indemnity insurance
- Ahpra: Professional indemnity insurance arrangements
- ABS: Counts of Australian Businesses, including Entries and Exits, July 2022 to June 2026
Small business insurance