Commercial insurance advice in Australia: what to know before you buy

"Commercial insurance" and "business insurance" are used interchangeably in Australia. Getting good advice on either starts with understanding what kind of advice you are receiving, and who is behind it.

Part of what makes business insurance complicated to manage is structural. Cover is often fragmented across several policies, different insurers and separate renewal dates. That creates an administrative burden and makes gaps hard to spot.

If you have searched for something like "need unbiased advice on commercial insurance policies in Australia," start here. Five checks apply to any provider of business insurance advice:

1. Licence. Do they hold an Australian Financial Services (AFS) licence, or are they an authorised representative of one? Verify on the ASIC professional registers.
2. Advice type. General advice or personal advice? This changes which obligations apply.
3. Remuneration. Commissions, fees, or both. It must be disclosed to you.
4. Insurer access. Which insurers can they place with? Panels vary widely.
5. Claims support. What happens if you claim, and what is in the service agreement?

Published by upcover, a Corporate Authorised Representative (CAR 1299211) of Experience Insurance Services Pty Ltd ABN 41 657 596 506, AFSL 539078. The information below is general in nature and is not personal advice.

What is the difference between general advice and personal advice?

Under the Corporations Act, general advice is financial product advice that does not take into account your objectives, financial situation or needs. Most online quoting tools, comparison platforms and self-service broker platforms operate on this basis. A general advice warning must be given.

‍Personal advice considers one or more of your objectives, financial situation or needs. Where it is provided to a retail client, additional obligations may apply. These can include the best interests duty and a Statement of Advice, subject to the exceptions in the legislation. Many commercial insurance clients are treated as wholesale rather than retail, which changes what obligations apply.

The advice type should be disclosed to you. If it is not clear, ask.

Source: ASIC: Giving financial product advice and ASIC: Obligations when giving financial advice.

What does a Financial Services Guide tell you about a broker?

A Financial Services Guide (FSG) sets out who the provider is and what services they are authorised to offer. It also states how they are paid and how to complain. It must be given before or when a financial service is provided. In some circumstances a provider may instead make website disclosure information available.

Read it before buying. It tells you what kind of advice you are getting and how the provider earns from the transaction.

How are insurance brokers paid and regulated in Australia?

Brokers are typically paid through commissions from the insurer on the premium placed, fees charged directly to the client, or both. Models vary between providers and must be disclosed in the FSG.

Some brokers also hold a binder authority, which lets them bind cover or handle certain matters on an insurer's behalf. A binder is an authority arrangement, not a form of payment. It matters because it affects who the broker is acting for in that part of the transaction.

Why can't most brokers offer "independent" advice on commercial insurance?

This is the part most business owners do not know.

Under section 923A of the Corporations Act, terms such as "independent", "impartial" and "unbiased" are restricted. A provider generally cannot use them if they receive commissions, volume-based payments or certain other benefits. ASIC has published guidance on how these terms may be used.

Most Australian brokers receive commissions, so most cannot describe themselves that way. That does not make their advice unreliable. It means the useful questions are not "are you independent?" but:

• How are you paid on this placement?
• Which insurers can you access, and which can you not?
• What is disclosed in your FSG?

Those three answers tell you more than any label.

What insurance industry codes apply in Australia?

The General Insurance Code of Practice is administered through the Insurance Council of Australia. It sets service standards for subscribing insurers on matters including claims handling and complaints, and applies to subscribing insurers and to eligible products and customers.

Many brokers are members of the National Insurance Brokers Association (NIBA), which has its own Insurance Brokers Code of Practice. Membership and subscription are voluntary, so ask whether a broker subscribes.

If a complaint cannot be resolved with the provider, it may be possible to escalate to the Australian Financial Complaints Authority (AFCA). Eligibility depends on the size of the business and the nature of the complaint.

How do you choose a commercial insurance broker or provider?

Three routes exist. The right one depends on how complex your risk is.

Market knowledge matters when choosing a broker. One who regularly places your occupation type will know which insurers have appetite for it and where sub-limits usually sit. Panels and remuneration models vary, and no single route covers every insurer in the market.

Compare cover for your business: Small business and sole traders | Tech and enterprise | Motor and fleet. upcover arranges insurance from selected insurers and does not compare all products in the market.

Which commercial insurance policies do Australian businesses arrange?

Common examples below, not recommendations. What suits your business depends on your activities, contracts, staff, location and industry.

What each cover does

• Public liability may help protect you and your business against liability if someone is injured on your premises or while you are providing your services in Australia.
• Professional indemnity may help protect you if a client claims your advice, work, or omission caused them a financial loss.
• Products liability may help protect you for claims made against your business for any products sold or supplied by you to a third party.
• Cyber insurance may include cover for incident response costs, data breach expenses, business interruption, forensic investigation, regulatory investigation costs, and third-party liability claims, subject to policy terms.
• Business pack insurance bundles key covers into one policy, which may include cover for property, contents, stock, theft, glass and business interruption.

All of the above are subject to the terms, conditions, limits and exclusions of the relevant policy.

What should you check in a commercial insurance quote?

The premium is the most visible number. It is rarely the most important one.

Sub-limits. A sub-limit caps a specific type of loss inside the overall policy limit. Two policies showing the same headline limit may respond very differently if their sub-limits differ. Sub-limits sit in the policy wording or PDS, where applicable.

Exclusions. A circumstance, activity or type of loss the policy does not respond to. Common examples include work at heights, heat or flame, gradual damage, or activities outside the stated occupation.

Definitions. How the policy defines terms such as "your business", "employee" or "occurrence" affects what falls inside cover. Easy to skip, often decisive.

Excess. What you pay before the insurer pays the rest. Different excesses may apply to different claim types within the same policy.

Activity description. If the policy describes your occupation too narrowly, work outside that description may be assessed differently. A consultant who also runs paid workshops needs both reflected.

Claims support. Ask what happens when you claim. A broker may assist with preparing and progressing a claim, depending on the service agreement. Insurers also have their own claims teams and obligations under the General Insurance Code of Practice. Either route can work. The point is knowing what support you have before you need it.

Three mistakes cause most problems: buying on premium alone, letting the activity description drift out of date, and setting sums insured below replacement value. Our guide on what cheap business insurance leaves out covers each.

When should you review your business insurance?

At every renewal, and whenever the business changes materially.

Government guidance also recommends reviewing insurance when employees, premises, services or equipment change. Contact your broker or insurer before assuming a change is covered. Mid-term changes are subject to insurer approval and may affect the premium.

Our guide on how to lower commercial insurance premiums includes a full renewal checklist.

How can you protect your small business beyond insurance?

Insurance transfers the risk you cannot remove. Risk controls give an insurer more information at quoting, which may support underwriting.

• Risk register. What could go wrong, how likely, and what it would cost.
• Business continuity plan. What happens if premises are unusable, a key supplier fails, or systems go down.
• Incident log. Near-misses, complaints and minor losses with dates, photos and costs.
• Training records. Current certifications, inductions and safety briefings.
• Contract review. Indemnity clauses, liability caps and insurance requirements before signing.
• Cash buffer. Business interruption cover responds after an insured event. Cash covers the gap while a claim is assessed.

None of this removes the need for insurance, and none of it guarantees a particular claims or pricing outcome.

How does upcover arrange commercial insurance?

upcover is an Australian digital insurance broker founded in 2021 by Skye Theodorou and Anish Sinha. It arranges business insurance across Australia, from sole traders arranging a first policy through to tech companies with complex placement needs.

Advice model. upcover operates on a general advice basis. Businesses with complex or specialty needs can book a consultation with a licensed adviser.

How it works. Straightforward risks can be quoted online in minutes, with a Certificate of Currency issued on policy confirmation for eligible policies. The approach: "Simple upfront. Expert-led as you scale."

Segments. Small business and sole traders · Tech startups and enterprises · Motor and fleet

upcover Pty Ltd (ABN 17 628 197 437) is a Corporate Authorised Representative (CAR 1299211) of Experience Insurance Services Pty Ltd ABN 41 657 596 506, AFSL 539078. Winner of Excellence in Insurtech at the 2024 and 2026 Finnie Awards, presented by FinTech Australia. 70,000+ businesses covered. 4.9/5 customer rating.

upcover arranges insurance from selected insurers and does not compare all products in the market. Get a quote | Talk to an adviser

Commercial insurance advice FAQs

Where can I get commercial insurance advice in Australia?

From an AFS licensee or an authorised representative of one. That includes insurers, comparison platforms and brokers. Check the licence on the ASIC registers, ask whether the advice is general or personal, and read the FSG.

Who offers independent advice on commercial insurance in Australia?

Section 923A of the Corporations Act restricts "independent", "impartial" and "unbiased" where a provider receives commissions. Most Australian brokers receive commissions, so most cannot use those terms. Ask how they are paid and which insurers they can access instead.

How can an insurance consultant or broker help me find better cover?

A broker can compare wordings, sub-limits and exclusions across an insurer panel, not just premiums. They may access underwriting agencies that do not sell direct, and may assist with preparing and progressing a claim, depending on the service agreement.

What is the difference between general advice and personal advice?

General advice does not take into account your objectives, financial situation or needs. Personal advice considers one or more of them. Where personal advice is given to a retail client, additional obligations may apply, subject to exceptions.

How do insurance brokers get paid in Australia?

Commissions from the insurer, fees charged to the client, or both. The FSG must disclose the model.

How do I check if an insurance adviser is licensed?

Search the ASIC professional registers by name, AFS licence number or authorised representative number.

What should I check in a commercial insurance quote?

Sub-limits, exclusions, policy definitions, the excess for each claim type, and whether the activity description matches what your business does.

Is workers compensation part of commercial insurance?

It covers employee injury or illness arising from work and is required under state and territory schemes where you employ workers. Obligations and the definition of "worker" vary by jurisdiction.

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_{The information in this article has been prepared without taking into account your individual needs, objectives or financial situation. It should not be relied upon as personal advice. All insurance products arranged through upcover are subject to the terms, conditions, limits and exclusions contained in the relevant policy wording and Product Disclosure Statement. Before deciding whether a particular insurance product is right for you, please read the relevant PDS and consider your personal circumstances. upcover Pty Ltd ABN 17 628 197 437 is a Corporate Authorised Representative (CAR 1299211) of Experience Insurance Services Pty Ltd ABN 41 657 596 506, AFSL 539078. upcover arranges insurance products with selected insurers and underwriters and does not compare all general insurers or insurance products available in the market.}