Why do businesses get insurance?
Business insurance is essential for managing unforeseen financial risks. As well as ensuring your business meets its legal obligations (e.g. through workers’ compensation cover), insurance safeguards your business against common threats such as property damage, public liability claims and cyberattacks.
We list the top 10 biggest risks to businesses worldwide in 2025 according to global insurer Allianz below: While not all concerns on the Allianz Risk Barometer are insurable, the top three typically are.
| Biggest risk to business | 2025 | 2024 |
|---|---|---|
| 38% | 36% |
| 31% | 31% |
| 29% | 26% |
| 25% | 19% |
| 19% | 18% |
| 17% | 19% |
| 15% | 19% |
| 14% | 13% |
| 14% | 14% |
| 10% | n/a |
How much does business insurance cost?
The cost of business insurance varies depending on your specific circumstances, but for small businesses, it generally ranges from $1,000 to $5,000 per year – roughly $84 to $417 per month.
These figures are indicative; the exact cost will vary depending on several factors outlined below.
What factors drive the cost of business insurance?
Industry
Businesses in higher-risk industries, such as construction or hospitality, generally face higher premiums than lower-risk sectors like consulting or online retail.
Location
The location of your business can affect premiums. For example, areas prone to natural disasters or higher crime rates may attract higher costs.
Type of cover
The types of insurance you include (e.g. public liability, professional indemnity, cyber or property insurance) and the level of coverage you choose.
Business turnover
Higher revenue can mean increased premiums, as insurers may perceive a larger business as carrying greater risk.
Number of employees
More staff usually means higher exposure to workplace incidents, affecting the cost of workers’ compensation and liability coverage.
Assets and equipment
The value and type of assets you need to insure, such as machinery, tools, stock, vehicles or technology. Businesses with high-value equipment or large inventories typically pay more for coverage.
Claims history
A history of frequent or large claims may increase premiums, as insurers see the business as higher risk.
Policy excess
This is the amount you pay when making a claim. Selecting a higher excess reduces your premium, while a lower excess increases it.
Eligibility for business insurance
To be eligible for business insurance, applicants generally need to meet the following requirements:
- Must be an Australian citizen or permanent resident (some insurers may also cover temporary residents or visa holders)
- Have a registered business in Australia with a valid ABN
- Maintain a physical or registered business address in Australia
- Operate a legitimate and lawful business activity within the scope of the insurance policy
- Provide accurate information about your business (e.g. industry type, number of employees, estimated annual turnover and business operations)
- Meet any industry-specific or insurer-specific requirements, such as qualifications, licenses or certifications for regulated professions (e.g. accountants, builders, health practitioners)
- Disclose any previous insurance claims or losses – failure to do so may void coverage
- Agree to policy terms and conditions and pay the required premium
How to apply for a business insurance policy
Applying for business insurance is straightforward and can be done in several ways:
Get a quote online
Most insurers offer online quote tools where you can enter your business details, choose the type of coverage you need, and receive an instant quote. A Certificate of Currency will also be provided either immediately or emailed within a few hours. The entire online quotation process depends on the insurer, but expect it to take up to five minutes to complete.
Call the insurer directly
You can speak with an insurance representative who can guide you through policy options, coverage limits and any special requirements for your industry. Depending on the provider, you may also be able to request a call back at your convenience.
Use a business insurance broker
Brokers compare policies from multiple insurers on your behalf, helping you find coverage that best suits your business needs and budget. Keep in mind that some insurers only provide a quote through an affiliated brokerage network, meaning you won’t be able to apply directly.
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