Australian small businesses face a range of insurable risks. The right insurance mix depends on your industry, the nature of your work, and whether you have employees. Here are the most common types.
Public liability covers injury or property damage to third parties caused by your business activities. Effectively mandatory for most businesses — see our detailed guide.
Professional indemnity (also called PI or errors and omissions) covers financial loss suffered by a client due to your negligent advice, service, or failure to perform. Required for some professions (accountants, engineers, financial advisers) and strongly recommended for any business providing advice or professional services.
Workers' compensation is legally required in every state and territory if you have employees. It covers medical costs, rehabilitation, and income replacement for employees injured at work. Premiums are based on industry classification and payroll size.
Business property and contents covers your physical assets (equipment, tools, stock, fitout) against theft, fire, storm, and other insured events. Essential if you have significant equipment or inventory.
Income protection or business interruption replaces lost income if your business cannot operate due to an insured event (fire, flood, key person illness). Often overlooked by small businesses but critical for sole operators — if you can't work, the income stops.
Cyber liability covers costs arising from data breaches, ransomware, and cyber attacks. Increasingly important as businesses digitise and handle more customer data.