Home Business Insurance

Compare business insurance quotes with Savvy to find the best policy for your home business.

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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.

Working from home and running a home-based business is now far more common in Australia. However, just because you’re at home doesn’t mean you don’t need business insurance. You’ll face many of the same business risks that you would working from an office or warehouse.

You can compare quotes for many types of business insurance here with Savvy. Just answer a few simple questions about your business and the insurance you need and you’ll have a range of offers from some of Australia’s top insurers to compare side by side instantly. Compare with us to make sure you get the best-value insurance for your business today.

What types of insurance should I buy for my home business?

The types of insurance you’ll require for your home-based business will depend entirely on the industry you’re in, how much contact you have with the public and how much business property and equipment you own. These include:

Public liability insurance

Public liability insurance is essential for anyone who has contact with the public. It doesn’t matter if they’re customers you visit or if clients come to see you at your home such as might be the case with home-based hairdresser businesses or if you run a massage or alternative therapies business.  

Public liability will cover you against claims that your business activity caused injury to a member of the public or damaged their property. Accidents can happen in any business, which could lead to a claim for personal damages or injury amounting to millions of dollars. This insurance offers between $5 million and $20 million worth of coverage for both personal injury and property damage claims.

What it covers:

  1. Third-party personal injury claims
  2. Damage to a third party’s property
  3. Legal fees to defend yourself

Product liability insurance

Product liability insurance will cover you against third-party claims that a product you sold was faulty or caused material loss, sickness, injury or death. This type of insurance is important for anyone who sells fresh produce, beverages and beauty or skin care products, as anything which is ingested or put on the hair or skin carries an additional risk of bacteria and virus transmission. Cover starts from $250,000 and can be bundled together with public liability into a business insurance package.

What it covers:

  1. Claims that a product you supplied caused sickness or injury
  2. Third-party damages claims
  3. Legal fees to defend yourself

General business insurance

General business insurance may also be worthwhile if you have tools, portable equipment, machinery or stock to protect as part of your home business. This could include your massage table or hair and beauty treatment equipment for those therapy and service occupations.

What it covers:

  1. Fire, storms, theft, vandalism and collision which cause damage to your business assets
  2. Specialist cover for electronic equipment and other portable equipment
  3. Limited business interruption insurance

Optional extras you may wish to include in your general business insurance package:

  1. Cyber liability insuranceto protect your home computers and any IT work you undertake from hackers and cyber criminals
  2. Employment practices liability insurance – which protects employers from claims made by people they employ, such as unfair dismissal or harassment

Personal accident and illness insurance  

Whatever occupation you’re in, have you considered what might happen to your expenses and your family if you were no longer able to earn your income? Accident and sickness insurance can provide cover for you if you become unable to work, providing a weekly replacement income if you're injured or ill.

What it covers:

  1. Loss of income as a result of an injury or illness

 Optional extras can include:

  1. Death benefits
  2. Disablement benefits
  3. Payment of business expenses during your recovery period

What generally isn't covered under home business insurance?

The most common general exclusions include:

  1. Injury to yourself or your employees
  2. Flood damage
  3. Glass breakage
  4. Unlawful activity or criminal negligence
  5. Reckless behaviour or intentional damage
  6. Anything to do with asbestos
  7. The effects of pollution caused by your business activity
  8. Commercial vehicle insurance (must be a separate policy)

How much will my home business insurance policy cost?

There is no set cost for an insurance policy, as each applicant is different and faces unique risks. Many factors influence the cost of business insurance, including the following:  

  • The industry you are in
  • The state you live in (for example, if your business is based in Darwin, you’ll pay higher insurance premiums than one in Adelaide, due largely to environmental risks)
  • Whether you live in a rural or urban area
  • Whether you’re self-employed, a sole trader, in a partnership or running a business
  • Your business size and turnover 
  • If you have any employees
  • Your credit history
  • Your insurance history, and whether you’ve made a recent claim

The main factor which will affect the cost of your insurance is the industry you’re in. All businesses in Australia are classified according to the risk their industry poses, and are allocated a risk ratio. These ratios are used by insurers to calculate the comparative risk of any one business compared to another.

You can find out how much insurance will cost for your business by comparing quotes right here with Savvy. Whether you need insurance to protect your home business against cyber attacks or your income if you injure yourself, you’ll be able to find a policy which is perfect for your business needs here.

Why do I need insurance when I run a business from home?

You’ve worked hard to set up your home business, so it doesn’t matter whether you work in a factory, an office, or at home: you still have a business to protect. General business insurance will protect your business equipment, and accident and illness insurance will protect your income in case you are unable to work. In addition, public liability insurance will protect your business from third-party property or injury claims, which can happen any time you interact with the public.

Most small to medium-sized businesses have some contingency funds to fall back on, but they rarely have sufficient to cover the cost of a major catastrophe. For example, if you suffered a cyber attack and were locked out of your website and social media pages, would you still be able to earn a living from your online business? If this happens and you have adequate cyber insurance to protect yourself, you’ll have a much better chance of getting back on your feet quickly.

Types of business insurance

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Frequently asked questions about insurance for home businesses

What information will I need to make an insurance claim?

The information you should have to hand when you contact your insurance company to make a claim will include:

  • The name of the policyholder, your policy number and start date (which can be found on your certificate of currency)
  • A detailed description of the incident or what happened to cause the damage, accident or injury, including specific dates and times
  • Contact details of any other parties involved or witnesses to the event
  • Details of your police report number if a crime took place
  • Details of the property including its age and value if you’re claiming for property damage or loss
  • Your bank details for settling the claim
Are my home business insurance premiums tax-deductible?

Yes – the Australian Taxation Office recognises that having business insurance is a legitimate cost of doing business, so the full cost of your insurance premiums can be claimed as a business expense and offset against your income.

What’s the difference between public liability and professional indemnity insurance?

The difference between public liability and professional indemnity insurance is that public liability covers you for claims by third parties for injury, illness or damage. Professional indemnity covers you for claims by customers or clients relating to professional mistakes or negligence. If your home business involves giving people advice, such as a financial consultancy, it’s worthwhile ensuring you’re protected from having to cover all your legal costs and any compensation you’re required to pay.   

If I work from home but am employed by another company, am I covered by workers compensation insurance?

Yes – you may be covered if the accident happened while you were actively working for the company that employs you. It is compulsory in Australia for all employers to have workers compensation insurance, but laws vary from state to state, so you should get professional advice about this issue if you are injured while working from home.

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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.