Getting insurance for small business

Insurance is essential for most businesses.  Without insurance, an accident or disaster can mean the end of your business.  Insurance premiums can be very steep, so make sure you budget for insurance!

The Main Types of Insurance for Small Business

Revenue and Assets Insurance – this really is insurance designed to protect against damage to your livelihood.  This includes insurance for content damage, stock deterioration, loss of profits, employee theft or destruction to electronic equipment.

Personal Accident and Illness Insurance – this insurance exists to protect you if you get sick, injured or become disabled, includes – income protection, trauma, and permanent disability insurance.

Public Liability Insurance – is insurance which protects against you being sued by the public (e.g. if someone comes into your shop, slips and falls).

Professional Indemnity Insurance – this is generally insurance to cover people whose business is to provide people with advice or a service (e.g. an accountant or doctor).

Motor Vehicle Insurance – you must insure all business vehicles for injury liability to third parties.  There are a range of business motor vehicle insurance options such as compulsory third party, third party property damage and comprehensive.  Investigate them carefully so you understand what they cover and so you can determine which type of cover is appropriate for your business.

Worker Compensation Insurance – you have to provide injury insurance for all your employees through an insurer approved by the relevant statutory body in your state or territory.

Picking an Insurer

When getting insurance you can either go directly to an insurance company, your bank or building society, or you can go through an insurance broker.  You will be required to disclose all relevant information to the insurance company when you make an application.

Set out below are a number of factors to look out for when choosing an insurer and signing an insurance contract:

  • Does the insurer have a limit as to how much money they will pay  in the event of a claim?
  • Is an excess payable?
  • Are there any exclusion clauses?
  • What are the conditions for ending the contract?
  • How do I challenge an insurer’s decision I don’t agree with?
  • How are premiums calculated?
  • Is the broker or insurance agent licensed?
  • Does the broker or insurance agent have experience with businesses similar to yours?
  • Make sure all quotes are made in writing

Learn to Manage Your Own Risks

Insurance premiums can be a substantial financial burden on your business.  There really isn’t an alternative to insurance, but you can minimise your exposure and premiums by managing your own risks.

You can do this by:

  • Identifying potential risks (ask yourself what do you anticipate could happen which would lead to an insurance claim).
  • Consider ways to manage those risks.
  • Act to prevent accidents.
  • Collect information about risks and consider this in future decisions about your business.

What Kinds of Risks do I Need to be Aware Of?

Of course, this really depends on what sort of business you are in – though insurance claims usually result from the following types of risks:

  • Workplace accidents.
  • Natural disasters.
  • Financial risks, such as changes in broad economic conditions.
  • Faulty IT systems.
  • Poor record keeping.
  • Changes in the market.
  • Staff illness.
  • Not complying with legislation such as taxation obligations.

A good business lawyer should be able to put you in touch with a good insurance broker to go through your business needs in more detail.


About LegalVision: LegalVision is a tech-driven, full-service commercial law firm that uses technology to deliver a faster, better quality and more cost-effective client experience.
Lachlan McKnight
Get a Free Quote Now

If you would like to receive a free fixed-fee quote or get in touch with our team, fill out the form below.

  • We will be in touch shortly with a quote. By submitting this form, you agree to receive emails from LegalVision and can unsubscribe at any time. See our full Privacy Policy.
  • This field is for validation purposes and should be left unchanged.
Our Awards
  •  Top 20 Startups in Australia - 2018 LinkedIn Startups List Top 20 Startups in Australia - 2018 LinkedIn Startups List
  • NewLaw Firm of the Year – 2019 Australian Law Awards NewLaw Firm of the Year – 2019 Australian Law Awards
  • Law Firm of the Year Finalist – 2018 Australasian Law Awards Law Firm of the Year Finalist – 2018 Australasian Law Awards
  • AFR Fast 100 List – 2018 Australian Financial Review AFR Fast 100 List – 2018 Australian Financial Review
  • NewLaw Firm of the Year – 2017 Australian Law Awards NewLaw Firm of the Year – 2017 Australian Law Awards
  • Most Innovative Law Firm - 2019 Australasian Lawyer Most Innovative Law Firm - 2019 Australasian Lawyer

Privacy Policy Snapshot

We collect and store information about you. Let us explain why we do this.

What information do you collect?

We collect a range of data about you, including your contact details, legal issues and data on how you use our website.

How do you collect information?

We collect information over the phone, by email and through our website.

What do you do with this information?

We store and use your information to deliver you better legal services. This mostly involves communicating with you, marketing to you and occasionally sharing your information with our partners.

How do I contact you?

You can always see what data you’ve stored with us.

Questions, comments or complaints? Reach out on 1300 544 755 or email us at

View Privacy Policy