Business

Best Business Insurance in Australia for Small Business (2026 Guide)

Shivangi

Jul 29, 2026 4:57 PM IST

Category Business

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Synopsis

Choosing the right business insurance can protect your small business from costly risks. This 2026 guide compares Australia’s leading insurers, explains the different types of business insurance, outlines what cover you may need, and shares practical tips to help you find the best policy for your business and budget.

For small businesses in Australia, insurance can become pretty confusing very quickly. There are public liability, professional indemnity, workers’ compensation, business packages and a dozen providers all claiming to have the appropriate cover for you. So what do you actually need, what the law says you have to have and how do you weigh up your options without paying too much? Here’s a breakdown.

What Types Of Business Insurance Does A Small Business Actually Need?

Most small businesses in Australia end up with a mix of the following, depending on what the business does:

• Public liability insurance: protects you if a customer, contractor or member of the public is injured or their property damaged due to your business activities.
• Professional indemnity insurance: protects you against claims made by clients that the advice or service provided caused them financial loss.
• Workers’ compensation insurance: Regulates employees injured or ill as a result of the work.
• Business insurance package: groups multiple covers together (e.g., public liability insurance, contents, stock, equipment and business interruption) into one policy.
• Commercial motor insurance: applies for any vehicles used in running the business.
• Cyber insurance: becoming more popular, and pays for costs if the business experiences a data breach or cyber attack

Insurance Type	Covers
Public liability	Injury or damage to the public
Professional indemnity	Loss caused by your advice or service
Workers’ compensation	Employee injury or illness
Business package	Public liability + contents, stock, tools
Commercial motor	Business vehicles
Cyber insurance	Data breach or cyber attack

Is Business Insurance A Legal Requirement In Australia?

Most business insurance in Australia isn't legally required, but two things are.

As soon as you hire your first employee, workers’ compensation insurance is a requirement here in every state and territory. This applies to full-time and casual workers, as well as certain contractors in the case of some businesses. Every state has its own scheme (iCare in NSW, WorkSafe in Victoria, WorkCover in Queensland), so precise rules vary depending on where you run your business.

Essential third-party (CTP) insurance is additionally obligatory on any vehicles registered to the business, as it’s for a personal vehicle.

Public liability, professional indemnity and business packages unlike workers’ comp, are not a legal requirement by themselves. Having blanket public liability cover is also indirectly a requirement: landlords, clients, worksites and licensing bodies will often require at least the minimum amount of cover before you may operate, sign the lease or work on their site. While law may avoid you, a contract or a client often will not.

How Much Does Small Business Insurance Cost In Australia?

Costs vary a lot depending on your industry, turnover, number of employees, and how much cover you choose. As a rough guide, based on published pricing from Australian insurers and brokers:

• Public liability insurance typically runs from around $40 to $150 a month, though low-risk sole traders can pay less and high-risk trades more.
• Professional indemnity insurance typically costs somewhere between $50 and $220 a month, depending on your profession and cover amount.
• A combined business insurance package bundling public liability with things like contents, stock and business interruption generally runs from $80 to $350+ a month.
• Workers' compensation is priced differently, usually a percentage of your total wages bill, depending on how risky your industry is classified as.

These are general ranges, not quotes. The best way to know what your business will pay is to get a few quotes based on your specific industry, turnover and location.

Public Liability vs Professional Indemnity vs Business Packages: What's The Difference?

These three are often confused with each other, so here is the simple answer. Public liability protects against claims coming from the public, for example, a customer slipping over in your shop, or a tradesperson damaging the property of a client during work.

Professional indemnity is insurance that protects you against claims made in relation to the advice or professional service you have provided, such as an accountant, consultant or designer being blamed for a client losing money due to a mistake or omission.

Instead of a more defined type of cover, business insurance packages are actually just a bundle. They band together several individual policies, public manuals contents, stock, tools and business interruption, under one policy that is usually cheaper and easier to manage than buying them all separately.

Physical businesses dealing with a public face-to-face tend to rely on Public Liability. A professional indemnity is generally also required for a business which sells advice, services or expertise. Sometimes this is instead of public in place of insurance but often you will require both.

Which Insurers Or Comparison Sites Are Best For Small Business Insurance?

No one single insurer rises above all others, rather the best insurer varies based on your industry, whether you want price or service more and whether you wish to buy instantly online or via a broker. Here is how the big players work in general:

• BizCover is a comparison website, not an insurer. It allows you to compare quotes from different insurers for public liability, professional indemnity and other covers in one place, a good starting point for viewing the range of prices quickly.
• Allianz is a relatively established, larger insurer in Australia that offers a business insurance pack with optional add-on covers, plus standalone public liability, commercial motor and workers’ compensation products.
• QBE provides a business package, which is relatively wide-ranging with lots of add-on options and more suited to businesses with complex or diverse needs compared to a lot of the others on this list, and is usually taken out via a broker.
• CGU is another older Australian insurer, having been in operation for well over a century, that provides small business packages, public liability and industry-specific covers normally available through brokers and direct channels.
• Finder is another comparison site like BizCover where you will check features and prices against a number of different insurers, rather than just being an insurer themselves.

Provider	Type	Best For
BizCover	Comparison site	Quick price comparison online
Finder	Comparison site	Comparing features side by side
Allianz	Insurer	Established businesses, flexible add-ons
QBE	Insurer	Complex or varied insurance needs
CGU	Insurer	Broker support, industry-specific cover

So, here are a few different options you can use, think of them as the starting points for your research rather than all getting ranked against each other. Compare websites such as BizCover and Finder which provide quick, one-off price comparisons; or go direct through well-known insurers like Allianz, QBE or CGU at if your needs could be quite specific or better off with ongoing broker support.

Does My Business Need Workers' Compensation Insurance?

If you have even one employee, yes, it's compulsory, with no exceptions, in every Australian state and territory. This includes full-time, part-time and casual workers, and some arrangements with contractors for conditions are also captured under the same requirement in particular states.

As a sole trader with no employees, you usually do not need workers’ compensation for yourself because the scheme is designed to provide insurance only for your employees and not those who own the business. In this case, it may be better to consider income protection insurance which instead is a different, standalone form of cover.

How Do I Compare Quotes And Choose The Right Level Of Cover?

A few practical steps make this easier:

1. Check what's actually required of you: your contracts, lease and any licensing rules often set a minimum cover amount you'll need to meet.

2. Get more than one quote: Prices for the same cover can vary noticeably between insurers.

3. Check the cover limit, not just the price: A cheaper policy with a lower limit, say $5 million instead of $10 million, might not meet what your contracts or clients require.

4. Read what's excluded, not just what's included: This is where a lot of business owners get caught out later.

5. Review your cover every year: As your business grows or changes what it does, your insurance needs usually change too.

Can I Bundle Multiple Covers Into One Small Business Insurance Package?

Yes, and this is the standard route most small businesses take. Business insurance packages allow you to ensure a number of covers such as public liability, contents, stock, tools and business interruption under one policy rather than multiple standalone policies. While this is typically easier to manage and can be more cost-effective than purchasing each policy individually, you should still double-check that a packaged offering contains everything your business requires, rather than assuming it does.

The Bottom Line

Australian law only actually mandates workers’ compensation and CTP insurance, but in practice almost all small businesses will need public liability, and often professional indemnity too because clients, landlords and worksites expect it. Given the wide variation in costs between industries and by levels of cover, your most dependable means of finding the right policy at the price point is through comparing a handful of quotes that pertain to your area of business as opposed to taking an all-comers view with one insurer or package.

This is general information only and does not take into account the unique circumstances of your business. Speak to a professional insurance broker or adviser who will help you determine the appropriate cover for your business.