A combined business insurance pack for a small business typically costs between $70 and $150 per month. Standalone public liability typically ranges from $30 to $80 per month. How much is business insurance for your specific business? That depends on what you do, how many people you employ and which covers you need.
This guide breaks down average business insurance costs by product, business size and occupation, based on published Australian market data from 2024 to 2026.
At a glance
- Occupation and industry are the biggest cost drivers. A desk consultant and a roofer with the same turnover pay very different premiums.
- Bundling covers into a business pack is typically cheaper than buying each cover separately.
- Stepping up from $5 million to $20 million cover doesn't multiply the cost by four. The jump is often smaller than expected.
- Most businesses don't choose their cover level. A lease, head contractor or council tender usually sets the minimum.
- Business insurance premiums are generally tax deductible to the extent they relate to earning business income. Check with a registered tax agent.
Business insurance cost by product type
Different covers protect different risks. Most small businesses start with public and products liability and add other covers based on what they do.
| Insurance type |
Typical monthly cost |
What it covers |
| Public and products liability |
$30 to $80 |
Third-party injury, property damage and product-related claims |
| Professional indemnity |
$80 to $180 |
Claims from negligent advice or service errors |
| Business pack (PL + property + BI) |
$70 to $150 |
PL combined with contents, stock, equipment and business interruption |
| Management liability |
$90 to $150 |
D&O, employment practices liability, statutory liability |
| Cyber liability |
$100 to $200 |
Data breaches, ransomware, business interruption from cyber events |
| Workers compensation |
Varies by state |
Staff injuries and lost wages. Mandatory for employers. Typically 1% to 3% of payroll. |
The product liability insurance cost is included in the public and products liability row. Most Australian insurers bundle these into one policy. If your business makes, sells or supplies physical products, the products liability part may push the cost higher. For a detailed breakdown of pack pricing, see how much does business pack insurance cost.
Ranges are indicative only, based on published Australian data for small businesses with fewer than 10 staff. Actual costs depend on your industry, covers, limits, excess and claims history.
Business insurance cost by business size
Larger businesses face bigger claims and need more cover. A sole trader with $100,000 in turnover pays less than a business with 15 staff and $3 million in revenue.
| Business size |
Typical monthly cost |
Typical annual cost |
Common examples |
| Sole trader (under $150K turnover) |
$50 to $150 |
$600 to $1,800 |
Home consultants, mobile services, freelancers |
| Small business (1 to 5 staff, up to $1M) |
$130 to $320 |
$1,600 to $3,800 |
Cafes, retail shops, local trades, small agencies |
| Growing business (6 to 20 staff, $1M to $5M) |
$300 to $625 |
$3,500 to $7,500 |
Multi-site operations, light manufacturing, larger teams |
Business insurance cost by occupation
What you do matters more than how big you are. A desk consultant and a roofer may have the same turnover but pay very different premiums.
| Occupation |
Typical monthly cost |
Why the cost differs |
| Consulting and professional services |
$50 to $120 |
Low physical risk. PI is often the main cost. |
| IT and technology |
$80 to $200 |
PI and cyber are the main covers. Higher for SaaS and data-heavy work. |
| Cleaning |
$40 to $90 |
Physical work on client sites. Risk of damage to client property. |
| Health, beauty and wellness |
$50 to $130 |
Hands-on services. Allied health may need higher PI. |
| Retail and hospitality |
$100 to $250 |
Foot traffic, food handling, stock and fit-out drive costs up. |
| Trades (electrical, plumbing, carpentry) |
$80 to $200 |
Physical risk, tools, site access. Height and hot work push costs higher. |
| Construction and building |
$150 to $400+ |
High-risk work, large contracts, $20M PL often required. |
| Transport and delivery |
$100 to $250 |
Vehicle risk, goods in transit, manual handling. |
Public liability insurance cost by cover level
Public liability is the most common business insurance in Australia. The cover level is usually set by a lease, head contractor or council, not by the business itself.
$5 million cover: $400 to $700 per year. Entry level. Suited to sole traders, home-based businesses and small residential jobs.
$10 million cover: $600 to $1,500 per year. The most common level for Australian small businesses. Often the minimum for commercial leases and council permits.
$20 million cover: $1,500 to $5,000+ per year. Required for government tenders, corporate supply chains and principal contractor agreements.
The average cost of public liability insurance sits around $30 to $80 per month for most small businesses at the $10 million level.
Why you get told to buy a specific level
There's no single law that forces every sole trader to hold business insurance. Workers compensation is the exception. It's mandatory in every state if you employ staff. For everything else, it's contracts and commercial requirements that set the floor.
- Commercial leases. Most landlords require $10 million or $20 million PL before handing over keys. Standard in retail, hospitality and office leases.
- Head contractors and procurement portals. Platforms like Cm3 and Felix block vendors who can't upload a Certificate of Currency at the required level.
- Council permits and market stalls. Local councils typically require $10 million or $20 million PL for market stalls, events, footpath dining and use of council land.
- Booking platforms. Platforms like Hipages and Airtasker may require current PL cover before listing your business.
- Professional bodies. Some industry groups or registration boards require minimum PI or PL levels as a condition of membership.
What drives the price up
- Industry risk. A desk consultant is cheaper to insure than a roofer. Physical work, foot traffic, food handling and hazardous materials all push the cost up.
- Turnover and revenue. Higher revenue means higher potential claims. A business turning over $2 million faces larger exposure than one at $200,000.
- Number of staff. More employees means more exposure, including workers compensation and employment practices liability.
- Claims history. Past claims signal higher risk. A clean record may help keep costs down.
- Cover levels and excess. Higher limits cost more. A higher excess (the amount you pay before the insurer pays) may lower the premium.
- Location and assets. Flood zones, bushfire areas, CBD premises, expensive equipment and high stock values may all affect the cost.
How to reduce your business insurance cost
- Bundle into a business pack. Combining PL, property, contents and business interruption into one pack is often cheaper than buying each cover separately.
- Increase your excess. A higher excess means you pay more at claim time, but the regular premium drops. Works well for businesses with few claims.
- Get your occupation right. Insurers price by occupation code. If your business is classed as a higher-risk trade than it really is, the premium will reflect that. Check the description matches what you actually do.
- Review annually. Don't auto-renew. Your turnover may have dropped, your staff count changed, or a new insurer may have entered the market. Get a fresh quote.
- Improve your risk profile. Security cameras, cyber controls like multi-factor authentication, and workplace safety training may all help at renewal time.
Most insurers offer monthly or annual payment. Monthly spreads the cost but may include a small payment fee.
How upcover can help
upcover arranges business insurance for eligible Australian businesses. You can compare options across public liability, professional indemnity, business packs, cyber, management liability and more.
- 70,000+ businesses covered across Australia
- 4.9/5 customer rating
- 80+ insurance partners
Get a business insurance quote through upcover
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.
Frequently asked questions
How much does small business insurance cost per month?
A combined pack typically costs $70 to $150 per month. Standalone public liability starts from around $30. The actual cost depends on your industry, turnover and covers. See the product and occupation tables above for a detailed breakdown.
How much is public liability insurance?
Annual costs range from $400 for $5 million cover to $5,000+ for $20 million cover. The level is usually set by a lease, contract or council requirement, not chosen freely.
How much does product liability insurance cost?
Product liability is typically bundled with public liability in Australia. Businesses that make, sell or supply physical products may pay more than service-only businesses.
Is business insurance worth the cost?
A single uninsured claim can cost more than years of premiums. Defence costs alone for a PL or PI claim can reach tens of thousands of dollars. For most businesses, the cost of cover is small compared to the cost of being uninsured.
Do sole traders need business insurance?
There's no general law that requires it. But most commercial leases, head contractors, councils and booking platforms require current PL cover before they'll work with you. If anyone asks for a Certificate of Currency, you need a policy.
The information in this article is general in nature and provided for informational purposes only. It does not constitute personal financial or insurance advice. Cost figures are indicative ranges only, derived from publicly available data across multiple Australian insurance broker and industry sources during 2024-2026, and are not a quote or guarantee. Always obtain a quote specific to your business before making a purchasing decision. 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.
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