Two types of business insurance are legally mandatory for most Australian businesses: workers compensation insurance if you have employees, and compulsory third party insurance for registered business vehicles. Everything beyond those two depends on what your business does, who it deals with, and what your contracts and professional registrations require.

The fastest way to answer this question is to work through five diagnostic steps. Each step narrows your options until you arrive at the specific cover types your business actually needs. At the end of each step there is a direct link to the relevant upcover product page so you can get a quote the moment you have your answer.

If you want the full explanation of every insurance type available to Australian businesses before working through these steps, the small business insurance guide covers all types in detail.

TL;DR

Workers compensation is legally mandatory if you have employees. CTP is included in vehicle registration.Public and products liability insurance is practically required for most businesses operating in any commercial setting.Professional indemnity applies if you give advice or deliver services clients rely on.Cyber insurance applies if you handle customer data, process digital payments, or use cloud systems.Business pack insurance applies if you have physical premises, significant stock, or equipment.Work through the five steps below to find your specific combination.

Step 1: What Type of Business Are You?

Your business type sets your starting point. Find the category that matches how you work and use it as your baseline. The steps that follow add to this baseline depending on your specific situation.

Tradie or construction business

Electricians, plumbers, builders, carpenters, painters, tilers, concretors, roofers, and other licensed trades.

Public and products liability insurance is your starting point. It is required as a licence condition in most Australian states and is the minimum specified in most head contractor and subcontractor agreements. A $10 million limit is standard across most trade licence and contractual requirements.

Add tools and equipment insurance if your tools are a significant asset and you move them between sites. If you are a sole trader without employees, personal accident insurance may help cover lost income if injury prevents you from working, subject to policy terms.

Get a quote: Public and Products Liability Insurance at upcover

See also: Trades and Construction insurance at upcover

Consultant, designer, accountant, IT professional, or marketer

Anyone who provides advice, analysis, recommendations, or deliverables that clients act on.

Professional indemnity insurance is your starting point. It may help protect you if a client claims your advice or work caused them a financial loss, subject to policy terms. Add public and products liability if you meet clients in person or visit their premises. If you work extensively with client data or deliver work through digital platforms, move directly to Step 4 after completing this step.

Get a quote: Professional Indemnity Insurance at upcover

See also: Consulting Services insurance at upcover

Health or allied health professional

Physiotherapists, psychologists, nurses, personal trainers, occupational therapists, speech pathologists, dietitians, support workers, and other health practitioners.

Professional indemnity insurance is mandatory for all AHPRA-registered practitioners under the National Law. Public and products liability insurance is required by the NDIS Quality and Safeguards Commission for registered NDIS providers, and is a standard requirement for gyms, clinics, and facilities where practitioners work. Both types are typically needed together.

Get a quote: Allied Health Professionals Insurance at upcover

See also: Health, Therapy and Wellness insurance at upcover

Retail, hospitality, or food business

Shops, cafes, restaurants, bars, bakeries, market stalls, and other businesses with a physical premises, customer foot traffic, and stock.

Public and products liability insurance may cover customer injury and property damage claims arising from your business activities. Business pack insurance may include cover for property, contents, stock, theft, glass, and business interruption, designed for businesses where a forced closure or property loss creates immediate revenue impact, subject to policy terms.

Get a quote: Business Pack Insurance at upcover

See also: Hospitality insurance at upcover | Retail and Consumer Goods insurance at upcover

Online, home-based, or technology business

Ecommerce businesses, SaaS companies, virtual assistants, content creators, online coaches, and home-based service providers.

Cyber insurance is your starting point if you handle customer data or process digital payments. Add professional indemnity if you deliver advice or services clients rely on. Add products liability if you sell or supply physical goods. Technology startups with investors or enterprise contracts commonly also hold management liability insurance.

Get a quote: Cyber and Privacy Liability Insurance at upcover

See also: Technology, Media and Digital insurance at upcover

Step 2: Do You Have Employees?

If yes: Workers compensation insurance is legally mandatory in every Australian state and territory. This applies as soon as you engage your first employee, including casuals and part-time workers. The scheme operates differently by state: icare in New South Wales, WorkSafe Victoria, WorkCover Queensland, ReturnToWork SA in South Australia, WorkCover WA in Western Australia, and WorkSafe Tasmania.

If no (sole trader with no staff): Workers compensation does not apply to you personally. Personal accident insurance may help provide income support if an injury or illness prevents you from working, subject to policy terms. This is the sole trader safety net that workers compensation provides for employees.

Get a quote: Workers Compensation Insurance at upcover

See also: Sole trader insurance options at upcover

Step 3: Do You Give Advice, Deliver Professional Services, or Produce Work Clients Act On?

This question matters even if you already identified professional indemnity in Step 1. If your answer there was less clear-cut, use this step to confirm.

If yes: Professional indemnity insurance may help protect you if a client claims your advice or services caused them financial loss, subject to policy terms. Written on a claims-made basis: the policy active when a claim is lodged responds, not the policy active when the work was done. If you regularly move between clients or take breaks between engagements, run-off cover is worth understanding before you need it.

If no (purely physical work with no advisory component): Public and products liability is your primary cover. Professional indemnity is unlikely to be relevant. Skip directly to Step 4.

Not sure what cover level you need for professional indemnity? The guide to professional indemnity cover levels covers the factors that drive the right limit for your specific practice.

Step 4: Do You Handle Customer Data, Process Digital Payments, or Rely on Cloud Systems?

If your answer is yes, you have cyber exposure. In 2026, this applies to almost every business. A booking system, a payment terminal, an email list, or a cloud-based accounting tool all create a data footprint.

If yes: Cyber insurance may help cover the costs of a data breach, ransomware attack, cyber extortion, and business interruption caused by a cyber incident, subject to policy terms. Australian businesses covered by the Privacy Act 1988 are legally required to notify the OAIC and affected individuals when a breach is likely to cause serious harm under the Notifiable Data Breaches scheme. The notification and response costs alone can run to tens of thousands of dollars. The Australian Cyber Security Centre records a cybercrime report every six minutes in Australia.

If no: Cyber insurance is a lower priority. Revisit this step as your digital footprint grows. Even a basic website with a contact form creates a data obligation.

Get a quote: Cyber and Privacy Liability Insurance at upcover

For the full breakdown of what cyber insurance covers, how first-party and third-party cover work, and what the 2025-2026 regulatory changes mean for your business, the cyber liability insurance guide covers this in detail.

Step 5: Do You Have Physical Premises, Significant Equipment, or Stock?

If yes: Business pack insurance may bundle cover for commercial property, business contents, equipment, stock, theft, glass, and business interruption into one policy, subject to policy terms. It is designed for businesses where a forced closure, fire, flood, or equipment failure creates immediate revenue loss. The components are modular. A cafe's business pack looks different from an accountant's, because the physical assets and exposure profile are different.

If no (home-based or no significant physical assets): A business pack is likely a lower priority. Your main exposure is covered through the liability-focused types identified in Steps 1 to 4.

What about commercial motor insurance?

If your business owns or uses registered vehicles, CTP insurance is already included in your vehicle registration. It may cover personal injury to others in an accident, subject to the CTP scheme requirements of your state. It does not cover damage to your vehicle, other vehicles, or property. Most businesses operating vehicles also hold commercial motor insurance or third-party property damage insurance to address those additional risks, subject to policy terms.

Get a quote: Business Pack Insurance at upcover

Your Insurance Combination: What to Do Next

By this point you know which types apply to your business. Here is how to move from knowing to being covered.

• Check your legal obligations. Confirm what your state requires for workers compensation. Check what your trade licence, AHPRA registration, or NDIS provider registration requires for insurance.
• Check your contracts and leases. Most commercial leases, head contractor agreements, and government contracts specify minimum cover levels. A $10 million public and products liability limit is the most common minimum in Australian commercial arrangements.
• Get an instant quote. upcover arranges insurance for 4,000+ business types across Australia with instant Certificate of Currency on policy confirmation.

About upcover

upcover is a digital-first insurance broker helping Australian businesses find and arrange the right insurance instantly online. upcover arranges public and products liability insurance, professional indemnity insurance, cyber and privacy liability insurance, business pack insurance, management liability insurance, and allied health professionals insurance for businesses across 4,000+ occupations in Australia.

• 70,000+ businesses covered across Australia.
• 4.9/5 customer rating.
• Instant Certificate of Currency on policy confirmation.
• 80+ insurance partners.

upcover is a Corporate Authorised Representative (CAR 1299211) of Experience Insurance Services Pty Ltd ABN 41 657 596 506, AFSL 539078.

Frequently Asked Questions

What business insurance do I need in Australia?

It depends on your business type, whether you have employees, and what risks your operations create. Workers compensation is legally mandatory if you have employees. CTP insurance is mandatory for registered vehicles. Public and products liability is practically required for most businesses operating in any commercial setting. Professional indemnity applies if you provide advice or professional services. Cyber insurance applies if you handle customer data or rely on digital systems. Work through the five steps in this guide to identify your specific combination.

Is business insurance mandatory in Australia?

Two types are legally mandatory: workers compensation insurance for businesses with employees, and CTP insurance for registered vehicles. Additional types are legally required for specific occupations. AHPRA-registered practitioners must hold professional indemnity insurance, NDIS registered providers must hold public liability and professional indemnity, and licensed tradies in most states must hold public liability as a licence condition. All other types are not legally mandated for every business but are practically required by most commercial leases, councils, and client contracts.

What insurance does a sole trader need in Australia?

Sole traders most commonly hold public and products liability insurance if they work with clients, visit sites, or operate in public settings. Professional indemnity insurance if they provide advice or professional services. Cyber insurance if they handle client data or work digitally. Personal accident insurance as a substitute for workers compensation, which does not apply to sole traders without staff. The right combination depends on the occupation and how the business operates.

What insurance does a startup need in Australia?

Technology and AI startups commonly hold professional indemnity or tech professional indemnity insurance, cyber and privacy liability insurance, and management liability insurance including directors and officers cover. Public and products liability is also held by most startups that interact with clients or hold events. Investors and enterprise clients frequently require proof of insurance as part of due diligence.

Do I need both public liability and professional indemnity insurance?

Many businesses need both. Public and products liability may cover physical injury and property damage claims arising from business activities. Professional indemnity may cover financial loss claims arising from professional advice or services. The two types address different categories of risk. A consultant who meets clients in their office may face a public liability claim if a client trips, and a professional indemnity claim if advice causes a financial loss. Having only one leaves the other category unaddressed, subject to individual policy terms.

How much does business insurance cost in Australia?

Public and products liability typically ranges from $300 to $2,000 per year. Professional indemnity ranges from $500 to $3,000 per year. Cyber insurance ranges from $500 to $3,000 per year. Business pack insurance ranges from $500 upward depending on physical assets. Premiums are tax deductible as a business operating expense. Actual cost depends on industry, revenue, cover level, claims history, and state. upcover arranges instant online quotes for 4,000+ business types across Australia.

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_{The information in this article is general in nature and provided for informational purposes only. It does not constitute personal advice on the insurance products or coverage levels appropriate for your specific business. Insurance requirements vary significantly by occupation, state, and individual business circumstances. Always verify current requirements with the relevant authority for your occupation and state before arranging cover. Workers compensation obligations are state-based and differ across Australian jurisdictions. The insurance information 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.}