Business Insurance Requirements

Find out what the requirements are to get a business insurance policy and compare quotes with Savvy today

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, updated on July 17th, 2023       

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We’ve partnered with BizCover to bring you a range of business insurance policies to help you compare them side by side.

Whether you’re starting up a small business, buying an established company or renewing your current policy, identifying the requirements for purchasing business insurance is an important first step to take. That’s why it’s vital to understand your business risk and identify what sort of insurance policy you need. 

You can simplify this process and compare policies from a range of respected Australian insurers right here with Savvy. Compare different options side-by-side and choose the cover which will satisfy your business’ needs. Get your business protected by getting a quote with us today. 

What are the requirements for purchasing business insurance?

There are several key steps you need to take when buying insurance for your business. The key requirements to keep in mind are: 

Provide information about your business 

Are you a sole trader, a first-time business owner or wanting to know how to decide what type of business insurance you need? Before offering an insurance policy tailored to your needs, your chosen insurer will need to know specific details about your business. The details you’ll be asked to provide will include: 

  • The type of business you run and your occupation
  • Your contact details including your name, phone number and email address
  • The address of your business premises and your ABN
  • Your estimated annual revenue
  • The number of employees you have
  • Industry-specific questions about the work you do and what risks it may involve

Find the best type of insurance for your business 

There are three main areas you need to think about when deciding which insurance policy is right for your business. These are:  

1) Your assets, including building, contents and stock

These are all the things you value which can be bought, sold or rented. Regarding your business, think about your building and its contents, your stock and equipment and your tools and machinery. The best types of business insurance which can cover your assets include: 

 These types of insurance, which can come as part of a general business insurance package, will protect your assets from threats such as fire, storms and impact damage (such as a tree falling or an out-of-control vehicle damaging your building). 

2)  Your people 

Next, consider the people associated with your business who need insurance cover. The types of insurance which can protect you, your business and employees if something goes wrong are: 

  • Workers compensation insurance (which is compulsory in Australia if you employ anyone)
  • Accident and sickness insurance (which can cover key people in case they can’t work and earn an income)
  • Business expenses insurance (which covers your business including wages for your employees in case you have to relocate or move your business to carry on trading)

3)  The business risks you face (your liabilities) 

Think about all the risks your business faces, ranging from third-party claims for damages to accusations of mismanagement or being selected for a tax audit. There are many different types of insurance that can protect you from a variety of liabilities, including: 

Compare quotes before making your final selection 

Additionally, there’s a variety of areas that are important to consider when comparing insurance offers. These include:  

  • The cost of your policy
  • Its inclusions and exclusions
  • Its claim limits (and whether there are any relevant sub-limits)
  • Policy excesses
  • Any regional or state requirements

Because there are so many choices available, it’s crucial to compare a range of offers with top business insurers around Australia, which you can do right here with Savvy. Our service is free and comes with no obligation, so you can consider as many different offers as you need to find one which is a perfect match for your business. 

How do I identify the risks relevant to my business and find the right policy to cover them?

Carrying out a risk assessment is a great way to identify the areas your business is vulnerable to. Think about all the risks you could face and the worst-case scenarios which could happen if they eventuate. For example, if you identify fire as one potential risk, the worst-case scenario would be that your business premises burned down. 

Next, think about how and why the risk could happen and how you, your staff and customers would be affected. Consider what might happen if you or an employee made a mistake or were negligent in providing a service. 

Here are some key questions to help you identify the risks you may face: 

  • What would happen if a customer was injured whilst visiting my business?
  • What’s most at risk if thieves broke in to steal goods?
  • What would I do if a member of the public sued me for giving incorrect advice or providing bad service?
  • What would happen if the building next door caught fire and damaged my shop or business premises?

In assessing all the risks you’ve identified, think about: 

  • The likelihood of the risk occurring
  • The potential damage that could result
  • The financial impact it would have on your business

By asking yourself these key questions, you can get a clearer idea of the type of insurance which is right for your business, and the main risks you need protection against. This should help you choose a policy that will cover the risks you’ve identified as most important. 

What are the requirements for making a claim under my business insurance policy?

First, check that you’re eligible to make a claim. Read the inclusions and exclusions on your insurance policy to make sure the event you’re claiming for is covered. For example, if vandals have smashed the front window of your shop, check that glass breakage is covered in your policy. If you run a candle business, check that fires resulting from lit candles are not an exclusion in your policy.  

If you have to make a claim, it’s important to notify your insurance company as soon as possible after the incident occurs.  Don’t wait several days before informing them an insured event has occurred. This is because the insurer may want to send out an assessor to check on the damage or inspect the site where thieves have gained entry. 

The details you’ll need to supply as part of your claim will vary depending on your insurer and the event you’re claiming for, but may include the following: 

  • The number of your insurance policy and its start date
  • The name of the policyholder
  • A copy of any police report you’ve made in relation to the insured event
  • Any photographs you have showing damage caused, items stolen or other relevant pictures relevant to your claim
  • The details of any witnesses or claimants

In some situations, you may need to supply a brief ‘notice of intention to claim’ before you submit your full claim, which lists the exact value of all which has been lost or the damage that’s been caused.

Types of business insurance

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Frequently asked questions about business insurance requirements

What is a business insurance package?

An insurance package is a bundle of several different types of insurance offered together as one policy. They usually cover the most common risks such as public liability insurance and general contents insurance.

How much will my business insurance policy cost?

The cost of your insurance will depend on several factors, which include: 

  • Your business location
  • The size and type of business you run
  • Your insurance history


For example, if you’re looking for insurance in the Northern Territory, your quotes may be higher than a similar business in Victoria, as insurance ratings are higher in cyclone-prone states than they are for more southern areas.  

What insurance is required for general contractors?

If you’re a general contractor, the most important insurance you may need is public liability insurance, followed by professional indemnity insurance. This will provide cover against any claims that your advice was incorrect or caused harm to a third person, or claims that your work or actions damaged someone else’s property.  

What types of insurance does a sole trader require?

A sole trader may need several types of insurance depending on their occupation and industry, which is why the most popular types of policy are often bundled together into a small business package. You’ll be given the option of opting in or out of various forms of insurance so you can tailor the package to your specific needs. 

Helpful guides on business insurance

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Savvy is partnered with BizCover Pty Ltd (ABN 68 127 707 975, AFSL 501769) to provide readers with a variety of business insurance policies to compare. Savvy earns a commission from BizCover each time a customer buys a business insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via BizCover.

Savvy does not compare all business insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.

For any further information on the variety of insurers compared by BizCover or how their business works, you can read their Financial Services Guide.

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