How much does business insurance cost in Australia?

Business insurance is not one product. It is a set of separate covers you arrange around the risks your business carries. Liability cover for injury or damage to others. Professional indemnity for claims about your advice or work. Property, contents and stock cover. Cyber cover. Workers' compensation if you employ staff.

So business insurance cost depends first on which of those covers you arrange and then on your industry, turnover, staff numbers and claims history.

Public liability insurance costs around $46 a month for most small businesses up to the cover arranged for, based on over 2,000 policies reviewed. A business pack costs around $162 a month. Those are all in figures, including stamp duty, goods and services tax and fees, not a base premium you then add charges to. A pack bundles property, contents, stock and business interruption alongside liability, so it insures far more than liability alone.

Some cover is required by law or by your licence. Some are required by a client contract or a lease. The rest protects assets, income and liabilities your business would otherwise carry itself.

The figures below are based on a study of over 12,000 policies arranged for Australian businesses between 2022 and 2026.

Business Insurance Cost Australia: What Businesses Pay

These are all in figures. Each one is what the business actually paid, including stamp duty, goods and services tax, levies and fees. There is nothing further to add on top. Most published cost figures are base premiums, which is why a quote often lands higher than the figure a business had in mind.

Insurance figures reflect the lowest cost arranged for that cover, generally small or lower-risk operations. Annual and monthly figures come from different groups of businesses, so the monthly figure is not the annual figure divided by twelve. All cover is subject to policy terms, conditions, limits and exclusions.

Business insurance cost by cover type

Different covers respond to different risks. Most small businesses start with public and products liability and add other covers based on what they do.

Public and products liability costs around $605 a year, or around $46 a month. It may respond if someone is injured on your premises or while you provide services or if a product you sold or supplied causes injury or damage. It is the cheapest of the main covers and the one most often written into contracts.

Professional indemnity costs around $1,221 a year, or around $129 a month. It may help protect you if a client claims your advice, work or an omission caused them financial loss. See professional indemnity insurance for what sits inside it.

Cyber and privacy liability costs around $1,181 a year, or around $109 a month. It may include cover for incident response, data breach costs, business interruption, forensic and regulatory investigation, and third-party claims, subject to policy terms.

A business pack costs around $1,267 a year, or around $162 a month. It adds theft and glass to the property, contents, stock and business interruption covers above. A business with a shopfront, fit-out and stock is insuring far more than a mobile sole trader, which is where the cost difference sits.

Management liability costs around $1,743 a year, or around $196 a month. It may include cover for directors and officers, employment practices and statutory liability. See management liability insurance for what sits inside it.

Workers' compensation is priced by the relevant state or territory regulator as a share of payroll, rather than arranged through a broker. Schemes include icare in New South Wales, WorkSafe Victoria and WorkCover Queensland. Check your own scheme for current rates or see workers compensation insurance.

Products liability is included in the public and products liability figures. Most Australian insurers bundle the two into one policy. If your business makes, sells or supplies physical products, the products liability part may push the cost higher.

For a fuller breakdown of pack pricing, see how much does business pack insurance costs.

Business insurance cost by industry

Industry matters, but the cover you arrange matters more. The same industry can pay very different amounts depending on whether it holds liability alone or a full business pack.

Real estate sits highest on the business pack figures. Auto services and cleaning have the highest standalone liability. Insurers may weigh business activities, exposure to third-party property, turnover, assets and claims history when pricing, and the mix differs by industry.

Health and wellness businesses rarely arrange standalone public liability. Most use a bundled product instead, which the next section covers.

Where a figure is not reported, there were too few policies to give a reliable number rather than an estimate. The industry links above go through to cover options for those businesses. The public liability figures draw on a much larger set of policies than the business pack figures. Treat the business pack column as directional.

Not sure which covers apply to your line of work? Compare options for your business or sole trader cover.

Why allied health insurance costs look different

Allied health and beauty professionals usually do not arrange professional indemnity and public liability separately. Most hold a single bundled policy that combines the two. This is the most commonly arranged product across the policies reviewed, which is why standalone liability figures for health look thin.

Typical monthly costs by profession:

• Registered nurses: around $39 a month
• Occupational therapists: around $31 a month
• Massage therapists: around $31 a month
• Counsellors: around $31 a month
• Disability support workers: around $43 a month
• Psychologists: around $45 a month
• Osteopaths: around $87 a month

Some of these professions are registered with AHPRA, and registration standards set professional indemnity requirements. Others are self-regulated, and the requirement comes from a professional association or from health fund provider status instead. Either way, the bundled product is what most arrange.

For more on cover for these professions, see allied health professionals insurance.

Who sets your business insurance requirements?

Requirements come from several places at once, and they differ by industry. There is no single rule that applies to every Australian business.

The practical consequence is commercial rather than legal for most businesses. Without a current Certificate of Currency at the level asked for, a head contractor generally will not let you start on site, a landlord generally will not hand over keys, and a council generally will not issue the permit. Tradies working as subbies are usually asked for proof before the first day, not after.

Businesses that sign commercial contracts commonly arrange higher liability limits than those working only for private clients. Check your contracts, lease and licence conditions to see what applies to you.

Need a Certificate of Currency for a job? Get a quote for your business or sole trader cover.

Public liability insurance cover levels

Public liability is the most commonly arranged business cover in Australia. The level is usually set by a lease, head contractor or council rather than chosen freely.

The three limits generally available are $5 million, $10 million and $20 million. Higher limits may cost more, but the increase is often smaller than expected because insurers price the risk of the business, not just the limit.

For cost details by limit, see how much does public liability insurance cost in Australia.

How much of your business insurance cost is government charges?

A share of every figure on this page is tax rather than cover. Stamp duty, goods and services tax and, in some states, a fire services levy are collected with your payment and passed on.

Duty is the part that changes depending on where you are. Every state and territory except the ACT charges it as a percentage of the premium.

Rates are current as of August 2026. Confirm with your state or territory revenue office, as rates change.

Two businesses doing identical work, with identical cover, pay different totals purely because of where they are based. A South Australian business carries an 11% duty where an ACT business carries none. That difference is not something a broker or insurer sets.

Victoria is phasing business insurance duty out

Victoria is the only state gradually abolishing duty on business insurance. The rate was 10 % before July 2024 and drops 1 percentage point each financial year until it reaches nil in 2033. It sits at 7 % for contracts effected or renewed between 1 July 2026 and 30 June 2027.

The rate that applies is set by the date your contract starts or renews, not the date you pay. So a Victorian business renewing now carries 3 percentage points less duty than it did two years ago on the same cover.

This trend shows up across the policies reviewed. Victorian policies arranged in 2022 and 2023 carry more duty than those arranged in 2026, on comparable cover.

Does paying monthly change your business insurance cost?

Across the business pack policies reviewed, businesses paying annually upfront paid around $1,267 for the year. Businesses on a monthly plan paid around $1,939 across the same twelve months.

These are two different groups of businesses rather than one policy priced two ways. Both figures are all in, so the gap already includes any instalment fees and finance interest charged on a monthly plan. The businesses choosing each option also differ in size and risk. Ask for both options on the same quote so that you are comparing like with like.

What affects business insurance costs?

1. Cover type. The single biggest driver and the reason a headline average is close to meaningless.
2. Industry and activities. Insurers price each occupation on its claims experience. Physical work, foot traffic, food handling and hazardous materials generally sit higher.
3. Turnover. Turnover can increase the scale of exposure that insurers are pricing, rather than simply meaning more claims.
4. Employees and subcontractors. More people working for the business means more exposure. If you use subbies, insurers may also look at whether they hold their cover.
5. Assets, stock and premises. A shopfront with a fit-out and stock carries more to insure than a mobile business.
6. Claims history, limits and excess. Past claims may affect cost at renewal. Higher limits may cost more, and a higher excess may reduce the ongoing cost while raising what you pay at claim time.
7. Location. Flood zones, bushfire areas and CBD premises may all affect the cost of cover. Your state or territory also sets the duty included in that cost, which can range from nil to 11 %.

How to reduce your business insurance cost

• Describe your activities accurately. Insurers price by occupation code, so if you overstate your work, it will price it that way.
• Keep turnover, staff and asset values current. Out-of-date figures can mean paying for exposure you no longer carry or being underinsured at claim time.
• Arrange only the covers relevant to your business. Start with the risks you actually carry and the requirements in your contracts.
• Compare options at renewal. Ask for a fresh quote rather than renewing automatically, and ask for annual and monthly rates on the same quote.
• Maintain risk controls. Documented safety procedures, security measures and cyber controls such as multi-factor authentication may all help at renewal.
• Know what cost is and what tax is. Part of what you pay is stamp duty and goods and services tax, set by government rather than by your insurer. No broker can discount that portion.

Business insurance costs are generally tax deductible to the extent they relate to earning business income. Confirm your own position with a registered tax agent.

How upcover analysed the data

The figures above come from public liability, professional indemnity, cyber, management liability, business pack and bundled healthcare policies upcover arranged for Australian businesses between 2022 and 2026. "What most pay" describes the middle range of policies, excluding the cheapest quarter and the most expensive quarter. "Typical cost" refers to the single midpoint figure. "Starts from" is the lowest cost arranged for that cover.

All cost figures are the total amount payable. Each includes the base premium, goods and services tax, stamp duty, any fire services levy, underwriter and broker fees, and finance interest where a monthly plan is applied. They are not base premiums, so nothing further needs to be added to them. Duty rates quoted in this article were checked against state and territory revenue office schedules in August 2026.

A small number of large or unusual policies sit well above these ranges and are not representative of a typical small business. Industry groupings with too few policies are marked as not reported rather than estimated.

Figures are blended across 2022 to 2026 without adjustment for changes over time. They describe upcover's own past business rather than the Australian market as a whole, so they are not a market average. Policy counts here describe policies reviewed for this article, which is a smaller set than the total number of businesses upcover has covered.

How upcover can help

upcover arranges business insurance for eligible Australian businesses. You can compare options across public liability, professional indemnity, business packs, cyber and management liability.

• 70,000+ businesses covered across Australia
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Get a quote for your business or sole trader cover

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 business insurance cost a month in Australia?

Public liability costs around $46 a month for most small businesses that upcover arranged insurance cover for. A business pack costs around $162 a month. Both figures include stamp duty, goods and services tax and fees. The two are not the same product, so the right figure depends on which cover your business arranges.

How much is public liability insurance a year?

Most businesses pay between $370 and $840 a year, with a typical cost of around $605. Cover starts from around $45 a year for the smallest and lowest-risk operations. Trades, cleaning and auto services businesses generally sit above the typical figure and retail and hospitality below it.

How much does professional indemnity insurance cost?

Most businesses pay between $764 and $2,092 a year, with a typical cost of around $1,221. Cover starts at around $404 a year. Professional services, technology, finance and engineering businesses arrange it most often.

How much does cyber insurance cost for a small business?

Most businesses pay between $865 and $2,018 a year, with a typical cost of around $1,181. Cover starts at around $223 a year. Technology and health businesses arrange cyber cover more than other industries.

Do you pay stamp duty on business insurance?

Yes, in every state and territory except the ACT, which abolished it in 2016. Rates range from 7 % in Victoria to 11 % in South Australia. The figures in this article already include duty, so there is nothing to add to them.

What affects the cost of business insurance?

Cover type is the biggest driver, followed by industry, turnover, employee and subcontractor numbers, assets and stock, claims history, limits and excess.

Do sole traders need business insurance?

There is no general law requiring it. Most commercial leases, head contractors, councils and booking platforms ask for current public liability cover before they will work with you. Some occupations and licences also set their requirements.

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_{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 only, based on policies upcover arranged for Australian businesses between 2022 and 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.}