Cost For Business Insurance

Find out how much your business insurance may cost and compare quotes here with Savvy. 

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, updated on August 1st, 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.

The cost of business insurance is a small price to pay for the peace of mind you’ll gain by knowing your business is protected in case disaster strikes. However, no two policies are the same in terms of their price, with a wide range of factors determining how much you’ll pay for your insurance.  

You can compare the cost of different business insurance policies here with Savvy. Consider a range of quotes from some of Australia’s most respected insurers with us today so you can find the best deal for your business at the most affordable price.

How much does business insurance cost?

The cost of business insurance depends on a whole range of factors, with there being no one set cost for any particular type of insurance. However, according to BizCover, some of the average figures for types of business insurance in Australia are: 

  • Businesses pay an average of $75 a month for a small business insurance pack consisting of several different types of insurance 
  • Tradies pay an average of $55 a month for public liability insurance
  • Allied health professionals pay an average of $25 a month for a combination of professional indemnity and public liability insurance. 

As can be seen from these average figures, the cost of business insurance varies widely, which is why it’s always important to compare policies so you find one that’s just right for your business needs. 

By answering a few questions online with Savvy, you’ll be able to compare insurance quotes from leading insurers side-by-side based on cost, coverage and more. Our comparison service is free and comes with no obligations, so get your business protected by finding the right policy with Savvy today. 

What factors affect the cost of business insurance?

There are many factors which influence the overall cost of your business insurance policy, including:  

  • The type of business you run 
  • The structure of your business (whether it’s a partnership, you’re a sole trader or have numerous directors) 
  • Your business size and turnover 
  • Where your business is located 
  • How many employees you have 
  • Your finance and credit history 
  • Your insurance claims history (how many claims you’ve made in the last five years) 

However, perhaps the main factor which will affect the cost of your insurance is the industry you’re in. This is because all industries have known risk factors, which are well documented and used by all insurers to calculate the comparative risk of any one business type. The way that insurers classify risk is through a premium rating classification system. All industries in Australia are classified according to the risk their industry and type of business is known to pose.  

For example, agriculture, forestry and fishing are considered the riskiest business in Australia in terms of claims of injury or damage to property. Transport industries and postal and warehousing businesses are also considered to be a higher risk, as are construction industries and manufacturing businesses. The lowest-risk industries are office-based workers such as IT professionals, financial advisors and legal professionals. 

Risk ratings are used as a basis for any insurance quote. Set formulas are applied when calculating the cost of insurance premiums, so whichever insurer you ask, the cost for a fisherman to insure their business will naturally be higher than someone running a marketing business. Despite this, quotes can vary widely, which is why it’s important to compare offers frequently.  

The location of your business is also important. Areas of northern Australia, including north Western Australia, the Northern Territory and Northern Queensland, are the most expensive places to get business insurance. This is because these areas are most prone to natural disasters such as cyclones, which can devastate large areas during the yearly cyclone season.  

If you want to know the exact cost for any one type of small business insurance, you can apply online today to instantly get a range of quotes to compare. For example, if you just require product liability insurance, you can get quotes for that type alone or get product liability included as part of a general small business insurance package. 

How can I reduce the cost of my business insurance?

Pay your insurance annually

If you can afford it, paying your insurance annually, rather than monthly, could earn you a saving of between 5% and 10%. Most insurers give a healthy discount for policies which are paid upfront, so pay your premium in one hit and enjoy the saving you’ll be offered. 

Bundle your insurance together

By bundling different types of insurance together under one umbrella, you can potentially save hundreds on your insurance. A general business insurance policy is often far cheaper than having several policies with separate insurers, as you can receive multi-policy discounts.  

Choose the right level of cover

Don’t pay for insurance you don’t need. For example, if you know you only need $5 million of public liability insurance, don’t pay for a policy which offers $10 million in coverage, as you could be paying for cover that’s unnecessary. Also, avoid unnecessary policies if you’re buying an insurance package. 

Increase your excess

By choosing to have a higher excess, you’ll reduce the overall cost of your business insurance. With excesses ranging from $200 up to $800 or more, choose a policy with an excess which is comfortable for your business to manage while at the same time offering the protection you need. 

Types of business insurance

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More of your frequently asked questions about the cost of business insurance

Does business insurance cost more for a startup company?

No – in general terms, you won’t be charged a higher cost for your insurance just because your business is a startup. However, discounts can apply in the form of no-claims bonuses for companies which have had insurance for longer than five years and have never made a claim on their policy. 

Is the cost of business insurance adjusted annually for inflation?

Yes – as the cost of living rises, so too does the cost of insurance. Some policies are index-linked and automatically rise with the cost of inflation, whilst with other policies, you’ll notice an increase in the cost of your policy when you come to renew it every 12 months. For this reason, it’s important to compare insurance costs regularly to make sure you’re getting the best deal possible. 

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

Yes – the cost of business insurance is acknowledged by the ATO as being part of the cost of doing business, so you can claim your business insurance premiums as a deduction on your business’ tax return. 

Are small insurance companies more expensive than larger ones?

No – the size of the insurance company you choose won’t have any great bearing on the cost of your coverage. While some of the larger insurers do benefit from the scale of their business, smaller insurers have fewer overheads and are sometimes able to offer policies which represent better value. 

Do all companies need business insurance?

Yes – all businesses need business insurance. It's there to protect a business in case misfortune strikes and is an essential part of planning. Insurance can mean the difference between success and failure for any business, no matter how large or small. 

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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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