If you run a small business – whether you’re a sole trader, partnership or company – just one unexpected event could cause serious setbacks.
Insurance can help protect you when things go wrong, providing essential protection for a range of risks small businesses may face . You can choose from standalone insurance products or combine them into a tailored business insurance package to suit your business’s specific needs.
Insurance requirements for small businesses
Depending on your circumstances, there are some types of insurance your business must hold regardless of its size.
Workers compensation insurance
Any business that has employees – even if you are a micro business with just a single employee – is legally required to hold workers compensation insurance. This gives financial protection to workers for work-related injuries and illnesses.
If you are a sole trader or partnership without employees, you won’t need workers compensation insurance. Instead, you should look to personal death, illness and disability insurance to cover any lost income – though this is not compulsory.
Public liability insurance
Public liability insurance protects your business against claims for injury or property damage caused by your actions or on your property due to negligence. While often optional, in certain industries and states it is compulsory.
For example, electricians in Queensland and plumbers in Victoria must have public liability insurance in place to meet licensing requirements.
Professional indemntiy insurance
Professional indemnity insurance covers claims for injury, financial loss or damages resulting from negligence, errors or breaches in your professional duty when providing services to clients.
This type of insurance is mandatory for certain professions, including health practitioners, lawyers, accountants and mortgage brokers.
Business insurance options for small businesses
Even if it’s not legally required, insurance can still be helpful if your business finds itself in trouble. Many businesses take out standalone policies for additional protection. Common types of business insurance cover include:
- Cyber liability insurance: protects against financial losses and reputational damage to both your business and your customers caused by cyber breaches or attacks.
- Management liability insurance: covers legal costs and damages arising from claims of mismanagement or wrongdoing made against company directors or management.
- Product liability insurance: similar to public liability insurance, this covers claims for injury or property damage caused by products you produce, supply or sell.
However, if you’re a small business, you can also benefit from business insurance packages that combine multiple types of cover into a single policy.
What does small business insurance include?
Business insurance packages are tailored specifically for SMEs, letting you choose the types of cover that best suit your business needs and bundle them into one plan.
These packages often include public liability and product liability insurance as standard, with a range of additional options available, such as:
- Business interruption: covers loss of income or increased operating costs due to an event that forces your business to temporarily close.
- Building: covers buildings you own if damaged or lost due to fire, weather, malicious activity or another insured event.
- Contents: covers the loss of or damage to business contents such as stock, fixtures or fittings due to a covered event like fire or theft – but not theft.
- Machinery breakdown: covers the cost of repairing or replacing business machinery if it is damaged or breaks down.
- Electronic equipment breakdown: covers the cost of repairing or replacing equipment like computers and printers if they fail.
- Portable equipment: also known as general property insurance, this covers the loss of and damage to portable business equipment like tools.
- Theft: covers the loss of and damage to business contents and business premises due to theft or attempted theft.
- Money: covers the theft, loss or damage to business money at the business premises, in transit or at a private residence.
- Goods in transit: covers loss and damage to your property while transported by road in a vehicle owned or operated by your business.
- Glass: covers damage to internal and external glass at your business premises, including windows, mirrors and display cabinets.
- Employee dishonesty: an extension to money and contents insurance, which covers the loss of money and/or contents due to theft or fraudulent acts by employees.
- Statutory liability: covers the costs incurred for unintentional breaches of key legislation in the operation of your business.
- Tax audit: covers accountancy costs your business incurs in relation to a tax audit carried out by the ATO.
How much does small business insurance cost?
The cost of taking out insurance as a small business can vary widely depending on your size, industry and the type of cover you choose.
To give you an idea, let’s take a look at some scenarios.
Scenario 1 – Electrician
A sole trader operating in Brisbane with no business premises or employees.
Business insurance package:
- Public liability insurance: $10 million cover, $500 excess
- Portable equipment insurance: $5,000 cover for tools and equipment, $500 excess
For this level of cover, the electrician pays around $86 per month.
While they don’t need to take out workers compensation insurance as they have no employees, they could take out personal accident cover to protect them if they are unable to work – but this is not compulsory.
Scenario 2 – Florist
A florist with three employees, running a small shop in Perth. The business sells flowers in-store, transports stock from suppliers and delivers bouquets locally to customers. It has a limited online presence.
Business insurance package:
- Public liability insurance: $10 million cover, $500 excess
- Contents insurance: $5,000 equipment, $10,000 stock in trade, $500 excess
- Glass insurance: $10,000 cover, excess $500
- Goods in transit: $50,000 cover, $500 excess
- Money insurance: $2,500 cover, $500 excess
This package costs around $115 per month.
In addition to this, the florist must also take out workers compensation insurance for employees, which is not included in the package.
Insurance amounts are based on quotes sourced from BizCover in February 2026. These examples are illustrative only; the true cost of your small business insurance will depend on your business's specific circumstances.
How to get small business insurance
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Apply through Savvy
We’ll connect you with our business insurance partner
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Build your insurance package
Add the types of cover your business needs
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Provide your details
Give information about your business and the cover amounts you want
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Compare quotes
You’ll have a range of insurers and cover options to choose from
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Get covered
Choose the package that best suits your needs and get set up today
Why compare business insurance policies through Savvy?
Benefits of small business insurance packages
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Customisable
Choose the cover that fits your business’s unique needs, so you only pay for what you require.
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Simple and convenient
Manage all your insurance through one policy, with a single renewal date and one point of contact.
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Cost-effective
Bundling your insurance often results in lower premiums than buying standalone policies separately.
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Comprehensive cover
By combining multiple covers into one package, you reduce the chance of gaps in your protection, giving you stronger, more complete coverage.
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Designed for small businesses
Packages are tailored specifically to the risks and needs typical of small businesses.
How to decide which type of business insurance you need
There’s a wide range of business insurance options, but what you need depends on your individual circumstances.
Before taking out insurance it’s important to assess your risks and identify what could cause financial loss or disruption to your operations. The key is to choose the cover that protects the areas where your business is most exposed.
For example, if you run a landscaping business, adding portable equipment and machinery breakdown cover to your plan, as well as taking out vehicle insurance for any utes and vans, can help you keep operating without being left out of pocket. You’ll also need workers compensation and public liability insurance to protect against incidents on the job that could cause injury or property damage.
On the other hand, if you work as a freelance writer from home, you might prioritise cyber liability and electronic equipment cover to protect against computer failure or cyber attacks. As a sole trader, personal accident and illness cover can also be important to safeguard your income.
Your business will evolve over time, so it’s important to review your insurance regularly. Changes such as moving premises, hiring new staff, acquiring equipment or expanding your operations can all affect the cover you need.
It’s also important not to underinsure. If something goes wrong and you haven’t purchased adequate coverage, you may find yourself uncovered for key risks, leaving your small business financially exposed.
