Small & Medium Business Insurance
Insurance options for owner-operated and growing businesses, set up around how you trade today.
Industry overview
Small and medium businesses often run on tight margins, and owners wear many hats. One unexpected event can take up time and money that would otherwise go into the business.
Insurance needs tend to change as a business grows, hires staff or moves premises. A broker can help you review your cover at each stage and explain the options available.
Common business risks
Property damage
Fire, storm and water damage can affect premises, equipment and stock. Recovery can take longer than expected.
Loss of income
If you cannot trade after damage, ongoing costs continue. Smaller businesses may have less cash in reserve to cover the gap.
Liability claims
Customers, suppliers or members of the public may claim for injury or damage connected to your business.
Cyber and payment fraud
Smaller businesses are often targeted by phishing and invoice fraud. Losses can be hard to recover.
Employment and management risks
As a business hires staff, it may face claims about workplace conduct, unfair dismissal or other management decisions.
Growing past your cover
New locations, higher turnover or new services can leave older policies out of date if they are not reviewed.
Insurance commonly considered
Businesses in this sector often look at the following types of cover. What suits you depends on your operations, contracts and assets.
- Business InsuranceMany small businesses start with a package policy that can combine property, theft, glass and liability sections.
- Public & Product Liability InsuranceBusinesses dealing with customers or visiting other premises commonly hold public liability cover.
- Business Interruption InsuranceOwners may look at this cover to help meet ongoing costs if an insured event stops them from trading.
- Cyber InsuranceBusinesses relying on email, online payments and cloud systems may consider cover for cyber incidents.
- Management Liability InsuranceGrowing businesses with directors and employees may consider cover for employment and regulatory claims.
- Commercial Motor InsuranceBusinesses using vehicles for deliveries or client visits may need cover that reflects business use.
Risk management considerations
- 1Review your sums insured each year, as equipment and stock values change.
- 2Back up business data regularly and test that you can restore it.
- 3Train staff to check invoice and bank detail changes directly with the supplier.
- 4Keep a simple plan for how you would keep trading if your premises were unavailable.
- 5Record key policies, renewal dates and broker contact details in one place.
- 6Let your broker know about changes such as new staff, new services or a move to new premises.
Why broker support helps
Owners of small and medium businesses often have limited time to compare policy wordings. A broker can explain the main features, exclusions and limits in plain language so you can make an informed decision.
As your business changes, a broker can review your cover and discuss options at renewal. If you need to make a claim, a broker can help you through the process with the insurer.
Frequently asked questions
What insurance does a small business need?
There is no single answer, as it depends on the type of business, its premises, staff and contracts. Some insurance, such as workers compensation for employees, may be required under state or territory law and is arranged through state schemes or authorised insurers. A broker can talk through the general options with you.
What is a business package policy?
A business package groups several types of cover, such as property, theft and liability, under one policy. You can usually choose which sections to include, and each section has its own terms and limits.
How often should I review my business insurance?
Reviewing at least once a year at renewal is common, and also whenever the business changes, for example when you move, expand or start offering new services.
Can I insure a home-based business under my home policy?
Home and contents policies often have limited or no cover for business activities, equipment or visitors. A separate business policy may be needed, depending on how the business operates.
Does using a broker cost more?
Brokers are usually paid by commission from the insurer, a broker fee, or both. Any fees should be disclosed to you before you buy, so you can see what you are paying for.
Talk to us about insurance for your business.
Tell us how your business operates and we'll discuss the types of cover that may be relevant.