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Cheap Business Insurance

Get quotes for cheap business insurance here with Savvy and save money on your policy. 

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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.

All businesses want to keep their overhead costs to a minimum, so finding cheap business insurance is an important task. The cost of insurance can vary widely across Australia, which is why it’s important to find a policy that offers great value for money. 

You can compare a range of quotes for business insurance right here with Savvy. Our free, no-obligation quote service can help you find the cheapest insurance policy which offers the protection your business needs. Consider offers from Australia’s leading insurers to help you find the most appropriate policy for your business today. 

How do I find the cheapest business insurance?

There are many factors in the business insurance process which can reduce the cost of your policies. Some of the key ways to help you find the cheapest business insurance are: 

Compare quotes  

Perhaps the simplest and most effective way to find the cheapest business insurance is to compare quotes from a wide range of insurers, which you can do right here with Savvy. 

By considering a variety of options, you’ll maximise your chances of finding the best policy for your business needs. Comparing could help you save money in the following ways:  

  • More competitive pricing: you may find a policy which offers the same coverage for less money 
  • Wider coverage: you could find a policy which offers wider coverage than your current policy 
  • Find special offers: you may be able to take advantage of special offers that insurance companies sometimes offer to attract new clients. For example, this could involve waiving waiting periods, extending the period of your cover for a bonus month or two or including glass breakage cover for free (which is normally offered as an additional extra) 

By answering a few simple questions about your business, you can compare a variety of insurance options through us. Our insurance quotation service is free and there’s no obligation. Save yourself time and effort by applying for your business insurance through Savvy today. 

Bundle your insurance 

You may be able to save money by bundling all your insurance needs into one business insurance policy, rather than having several different policies from a range of insurers in place. This can often lead to a multi-policy discount that wouldn’t otherwise apply. 

Increase your excess 

The excess is the amount you are required to pay when you make a claim. By choosing a higher excess (such as $500 instead of $200), you can reduce the overall cost of your insurance premium, as you’re taking on more of the risk yourself. 

Avoid unnecessary claims 

Consider carefully if it’s worth claiming on your insurance policy if you have a more minor incident occur. For example, imagine you have a shop and your front window is smashed. The replacement cost for the glass is $1,000. You have a $500 excess on your insurance policy, so that means it will only cover the cost of $500 worth of repairs. You may find that losing your no-claims bonus, and potentially having the cost of your insurance rise the following year, is a most expensive option than paying the full cost of the broken window yourself. 

What factors affect how much I’ll pay for my business insurance?

When assessing how much risk is posed by your company, most insurers use standard risk classifications which assign a value based on the industry you are in. For example, insurers know that mining, forestry and manufacturing industries pose a higher risk of claiming than financial or banking service companies. 

Some of the factors which will affect the cost of your business insurance include: 

  • Which state your business is in 
  • The location of your business within your city or town 
  • Whether you’re in a rural or urban location 
  • The type of insurance cover you’re after 
  • The structure of your company, business or organisation (for example, if you’re a sole trader, partnership, listed or unlisted company, trust, not-for-profit organisation and so on) 
  • How long you’ve been in business for 
  • The size of your operation and your turnover 
  • How many employees you have 
  • Who you’ve previously been insured by 
  • Your insurance claims history 
  • Your credit score 
  • Whether you, your company or any directors have any history of bankruptcy, foreclosure or repossessions within the past five years 

It’s because there are so many contributing factors to the risk posed by a company that insurance quotes can vary so widely from one insurer to the next. For this reason, it’s important to compare offers before deciding which one best suits your organisation, which you can do right here with Savvy. 

How do I decide what business insurance I need?

When you’re deciding which type of business insurance you need, it’s important to first look at which insurance is compulsory and build up your needs list from there. The main types of insurance in Australia you may need are: 

Workers compensation insurance 

If you employ anyone in Australia, you have to have workers compensation insurance. It doesn’t matter whether your workers or employees are full or part-time, permanent or temporary: they must all be covered. The premium you’ll pay is based on a percentage of your wages bill, which varies from state to state but will generally range from 1.2% to 2.2%. 

Public liability insurance 

Public liability insurance is commonly a compulsory requirement to protect businesses against third-party personal injury or illness claims. Government organisations and departments often specify this insurance is held before submitting a tender or quote for work.  

If you’re in a trade, some site owners require all their sub-contractors to have public liability cover, and if you wish to hold a public event (such as public market stalls or a street parade), you’ll probably need this cover too. This is one of the most common policies to cover small and medium businesses from claims made by people whilst on their property. 

Professional indemnity insurance 

Professional indemnity insurance is compulsory for some occupations, such as doctors, nurses and allied health professionals. In addition, if you’re a doctor running a general practice in Australia, it’s also compulsory to have personal practitioner indemnity insurance to renew your medical registration.  

Therefore, check if there’s any type of insurance which is compulsory for your profession or registration or membership of any associations. Even if it isn’t compulsory for you, it’s worth being covered if you give professional advice or provide a service to the public. 

Building and contents insurance 

If you have an office or shop within a larger shared building, such as a shopping mall or office block, the landlord or owner may require each tenant to have certain types of insurance which could include building and business contents cover.  

As another example, glass breakage insurance is a common type which some landlords insist their tenants have. Check the requirements for insurance with your building owner, landlord or strata corporate body to find out if any insurance is compulsory for you as a tenant or shared occupier of a business premises. 

Once you’ve identified the types of insurance which may be compulsory for your industry, profession or business, look at the risks your business faces. A formal risk assessment process can help you identify which risks you face, and the likelihood of that risk occurring as a worst-case scenario. Your risk assessment should cover all aspects of your business, including: 

  • Your assets (building, plant, machinery, vehicles) 
  • Your people (employees, customers, clients, the public) 
  • Your intangibles (your company’s reputation, your computer databases and lists and your intellectual property) 

All of these elements should be considered in your risk assessment and should inform you what type of insurance coverage is most vital to your business.

Is the cheapest business insurance always the best?

No – the cheapest insurance isn’t always the best and can actually be less value for money than a more expensive policy. This is because the cheapest policies can sometimes offer less coverage, lower payment limits or have more exclusions than those which may be just a few dollars a year more expensive. 

When comparing insurance policies, look at the following aspects and compare what’s on offer side by side: 

  • Limits – check what the claim limits are. Insurance policies such as public liability insurance often come with standard limits, such as $5 million or $10 million per claim. Make sure your business is sufficiently covered. 
  • Inclusions and exclusions – make sure you know exactly what is and isn’t included in your policy and compare like for like. For example, is glass breakage an exclusion? Will you be covered for flood damage or just other forms of water leakage? 
  • Excess – do all the policies you’re considering have the same excess? A policy which has a higher excess may be slightly cheaper, but make sure you can afford the larger excess when considering if that insurance product is right for your business. 
  • No-claims bonuses – if you have an insurance bundle and need to make a claim, will you lose your no-claims bonus across all of your policies or just on the one you made a claim on? Such no-claims bonuses can amount to 5% or more a year for each year you don’t claim, so they’re worth considering when comparing policies. 

Types of business insurance

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Frequently asked questions about cheap business insurance

Are there any waiting periods if I change my business insurance?

Unlike health insurance in Australia, there aren’t usually any waiting periods before you’re able to claim on your business insurance. The cover starts from the moment you pay your first instalment and receive confirmation of cover. However, specific insurance policies may have a waiting period clause in them. For example, if you have business expense insurance, you may have to wait for 14 days after your business has suffered a catastrophic incident before the insurance will start to pay your business expenses. 

Is it cheaper to pay for my business insurance annually rather than monthly?

Yes – often the cost of business insurance is slightly cheaper if you pay it up-front for an entire year. Paying your premium in monthly instalments may add up to 5% or more to the cost of your insurance compared to an upfront payment. 

Does the cost of business insurance vary from state to state?

Yes – since all states and territories have their own legislation and requirements for some types of insurance, costs do vary. For instance, the average cost of public liability insurance in Western Australia will be different from policies in New South Wales and Tasmania. 

Do larger insurance companies offer cheaper insurance?

Not necessarily – larger insurers can sometimes offer cheaper products because they have a higher number of policies to spread their risk over. However, smaller insurers can also offer great value and can sometimes undercut their larger rivals, particularly for policies which are more specialist or not so popular. As such, it’s crucial to compare your options with Savvy. 

Can I claim the cost of my business insurance as a tax deduction?

Yes – the cost of your business insurance is considered by the ATO to be a cost of doing business, so you can claim it as a tax deduction and offset it against your income on your next tax return. 

What is the cheapest type of business insurance?

The cheapest type of business insurance is usually a business insurance package. This usually includes cover for the most general types of business insurance you need. It will cover you for general property and asset damage due to things like fire and storms, plus cover for theft and vandalism. Packaged with this is often some limited public liability and business interruption insurance to cover you if there’s a third-party claim or if your business premises is destroyed by fire and you have to move out and rent another building. It’s usually far cheaper to buy a package of products together rather than individual policies on their own, but they may not always offer the cover your business needs. Remember to always compare policies before deciding which one is best for your business. 

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Disclaimer:

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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