Starting a business? Here's the insurance you actually need
- May 13
- 2 min read
Most small businesses don't think about insurance... until they get their first claim...
Why insurance matters:
Running a business without insurance isn't "saving money" it's taking on all the risk yourself. One incident can mean:
Legal claims
Injury costs
Equipment loss
Business shutdown
Insurance protects your income, assets and reputation.
Sole trader? You ARE the business and are personally liable for debts + claims
Pty Ltd Company? Separate legal entity - liability sits with the company (mostly)
Both still need insurance - your business structure doesn't fully protect you.
When do you need it?
Before you start trading. Not after:
❌Signing a contract
❌Starting a job
❌Hiring staff
You need insurance in place from day one
Everyone needs this:
PUBLIC LIABILITY INSURANCE
If someone gets hurt or you damage something while working:
Covers injury to others
Cover damage to property
Protects you from legal claims
If you deal with people, sites, clients, or the public...
You need this
Most clients, sites and contracts require you to have insurance before you start!
Also covers:
Legal defence costs (even if you're not at fault)
Incidents at client sites or public spaces
Damage caused by your employees or contractors
If you have workers:
WORKERS COMPENSATION
If your employee gets injured or becomes unwell due to work:
Covers employee injuries at work
Covers wages + medical costs
Legal requirement in Australia
Applied whether you have 1 employee or 100
Each state in Australia manages it differently, but the requirement is the same
Important to know:
Applies to full-time, part-time & casual employees
You cannot contract out of this obligation
Penalties apply if you don't have it in place
Professional services require:
PROFESSIONAL INDEMNITY
If your advice, service or work causes a financial loss:
Covers mistakes, advice, or services provided
Protects against client claims for loss
Essential for:
Consultants
Admin/VAs
Designers
Coaches
Anyone giving advice
Real Examples:
A client loses money based on your advice
An error in your work causes financial loss
A missed deadline impacts a client project
Industry Specific Cover:
DEPENDING ON YOUR BUSINESS, YOU MAY ALSO NEED:
Plant & equipment insurance (covers machinery, tools, breakdown)
Marine transit insurance (covers goods while being transported)
Cyber insurance (covers data breaches, hacks, system attacks)
Product liability (if you sell physical products)
Contract works insurance (covers works in progress, materials and site damage during construction - this is often required before you step onsite)
How it protects you:
The right insurance means:
✔️You're not personally paying legal costs
✔️Your business can survive incidents
✔️You can keep operating after setbacks
✔️Clients take you seriously
It's not just compliance... it's business protection.
Don't guess.
Don't wait until something goes wrong.
Get advice.
Set it up properly from the start.
Because fixing it later is always more expensive.
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