Businesses must deal with risk on a daily basis, regardless of their size or industry type. Insurance is an essential part of managing these risks, and for small business owners uninsured at the time of an accident, the resulting costs can often lead to closure of the business. If you're operating a small business, having insurance can help reduce your risk and allow you to succeed in the future. 

What insurance does my business need?

Your insurance requirements will vary according to the type of business you are operating, but you should be aware that some forms of insurance are compulsory, such as workers compensation and third party car insurance. Some types of insurance may also allow you to claim tax credits for the Goods and Services Tax (GST) component of your insurance premium.

Some types of insurance are mandatory for Australian businesses in certain situations:

Although it's not compulsory, consider insuring your assets, revenue, and liabilities to protect your business against potential risks.

For further information talk to your business advisor or speak to an insurance broker for advice. Search for your nearest government-funded business advisor using our Advisor Finder.

The information in this topic is targeted at new and experienced business owners wanting to understand their insurance options and obligations, and find ways to further minimise their existing level of risk. Once you have an understanding of your options and obligations, talk to a number of insurance companies and brokers to further discuss the best options for you.

Types of insurance

Before choosing an insurance policy you'll need to evaluate your business's insurance needs. Your insurance requirements may vary considerably depending on the type of business you operate.

Some insurers offer insurance package policies specially tailored to cover your business needs. There are also individual products that may be relevant to the particular nature of your business.

Industry associations sometimes buy insurance in bulk to provide better deals to their members. They also provide important insurance advice that is specific to the industry. If you are a member of an industry association, contact them to find out how they can help you.

There are three broad types of business insurance:

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