Month: April 2026

small business checklist australia 2026

What Insurance Does a Small Business Need in Australia? (2026 Guide)

What insurance does a small business actually need in Australia?

Starting or running a small business can leave you with some serious financial vulnerability, so getting the right insurance is a top priority – not to mention one that can save you a pretty penny while still keeping you properly covered.

In this guide, we’ll walk you through the insurance types every Australian small business should be thinking about, whether they’re legally required, something we really encourage, and how to avoid some of the most common mistakes we see as Brisbane-based brokers.

Business insurance guide · 2026

43%

of small businesses get caught out with inadequate insurance when they need to make a claim

1 in 5

Australian SMEs have to deal with a significant insurance event every year

Step 1: Get a handle on the risks you actually need to cover

Injury to people

Accidents to customers, staff or the public on your premises or from your work

Property risks

Damage to your building, stock, equipment or tools. Basically, all the stuff that could go wrong with your physical assets

Advice Risks

Mistakes in professional services that cost your clients money, and legal claims from people who think you’ve done them wrong

Personal Income Risks

Loss of revenue if you or a key person can’t work due to illness or injury

Loss of Business Income

Loss of revenue for your business if you are unable to trade from your premise after a fire or storm for example

Cyber Risks

Data breaches, ransomware or system crashes that can bring your whole operation to a standstill

Step 2: Know what's legally required

Mandatory

Workers Compensation

If you’ve got staff, this is a no-brainer and in some places, failing to get it can cost you up to $50,000 in fines.

Mandatory (main industries)

Public Liability

This isn’t required for every business, but it is if you do things like work on government contracts or out of retail premises

Mandatory (for any vehicle)

Compulsory third party (CTP)

CTP insurance is mandatory for every registered vehicle in Australia so dont even think about driving without it – it’ll cover you for personal injury claims from other people who were involved in an accident with your vehicle

Mandatory (for certain industries)

Professional indemnity

If you’re an accountant, builder or health professional, for example, Professional Indemnity Insurance is a must-have to cover your back against claims of negligence

Add in the covers that are worth your while

These aren’t a legal requirement for most businesses, but they’ll give you protection against some of the most common risks that will sink an SME.

STRONGLY RECOMMENDED

Business interruption

If disaster strikes & you cant operate due to something like a fire, flood or major equipment failure your business needs business interruption cover – the only thing that can replace your lost income while you sort yourself out.

STRONGLY RECOMMENDED

Management liability

This protects your company directors and managers from claims of mismanagement or employment disputes

STRONGLY RECOMMENDED

Cyber insurance

Cyber Insurance covers you for data breaches, ransomware, and other cyber nasties that can bring your business to its knees

STRONGLY RECOMMENDED

Commercial Property Insurance

If you’ve got a building or significant physical assets, commercial property insurance will cover you for damage from storm, fire, flood etc.

Think about industry-specific cover

Your industry has its own unique risks – so make sure you know what you need to get covered.

INDUSTRY SPECIFIC

Contract works insurance

Contract Works Insurance Covers construction projects in progress against damage, theft or losses of any kind. This is typically required for bigger building contracts in Queensland.

INDUSTRY SPECIFIC

Products liability

Products Liability Insurance is insurance for if you make, sell or supply physical products, this cover is for you. It protects you against claims that your product caused injury or property damage to a third party.

INDUSTRY SPECIFIC

Fleet & motor insurance

For businesses with multiple vehicles, fleet insurance cover works out cheaper and is simpler to manage than individual insurance policies for 3 or more vehicles.

INDUSTRY SPECIFIC

Tool & equipment insurance

For builders and tradies. This insurance covers your tools and equipment against theft, damage or loss,  especially important since tool theft from vehicles is one of the most common builder claims in Queensland.

2026 Small Business Insurance Checklist
Annual Review

Your 2026 Small Business Insurance Checklist

Print this out and use it to review where your cover stands right now.

Cover reviewed 0 / 8
Core covers
Workers Compensation
Make sure you've got this sorted and covers all your employee types — casuals included.
01
Public Liability — at least $10M cover
Check your contracts — some of them might require $20M as a minimum.
02
Professional Indemnity Insurance (if applicable)
Usually a must for most licensed professionals — check your industry regulator to confirm.
03
Commercial Property or Business Package
Confirm the sum insured is the current replacement value, not the market value.
04
Business Interruption Cover
Make sure the indemnity period is long enough to actually rebuild and get back on your feet.
05
Additional covers
Cyber Insurance
Even small businesses are targets — check if you handle customer data or payment info.
06
Management Liability
Covers directors and officers against claims of wrongful acts in managing the business.
07
Key Person Insurance
If your business relies on one or two critical people, protect yourself if they can't work.
08

⚠️  This checklist is a general guide only and does not constitute financial or legal advice. Speak with a licensed insurance broker to review cover specific to your business needs.

The 5 Most Common Insurance Mistakes We See

1

Not Insuring for Replacement Value, Not Market Value

Insuring for market value instead of what it would really cost to replace your property is a common and costly mistake, especially with the price of construction going up in 2026

2

Not Being Honest About Your Business

If your policy doesn’t reflect what you actually do, your claim can get knocked back – even if it’s something unrelated

3

Business Interruption Periods That Are Too Short

A 12-month period might sound good but re-building a flood-damaged office in Brisbane can easily take 18– 24 months

4

Using Personal Vehicle Policies for Business Use

Most personal car insurance doesn’t cover claims from business use, so if you have an accident while using your car for work you can be left fully exposed

5

Renewing and Forgetting About It

Your business is always changing so your insurance should be too. Not revving up for a review every year means you’re probably paying for the wrong cover

Tailoring Your Insurance to Your Business Needs

Choosing the right insurance involves more than ticking off a checklist. It requires a deep understanding of your business’s specific risks and operations because not every small business will need the full spectrum of insurance coverage listed above.

We suggest you conduct a risk assessment and prioritise the policies that address the most significant threats to your business. However, as your business evolves, you should regularly review and adjust your insurance portfolio to ensure your company’s coverage continues to cover all your business risks. No one wants to be under or over-insured!

For tailored advice from industry specialists, consider consulting one of our professional insurance brokers. Their expertise can be invaluable when navigating the complex landscape of business insurance, helping you secure the right protection at competitive rates.

Not sure if your business is properly covered?

Most business owners only find out they have the wrong insurance when they need to make a claim and by then it’s too late. At Morgan Insurance Brokers we offer a free, no-obligation insurance review where we look at what you have, identify any gaps, and tell you straight whether you’re properly protected. No jargon, no pressure, just honest advice from Brisbane brokers who work for you, not the insurer. With 500+ five-star Google reviews and access to Australia’s leading insurers, we’ll make sure your cover actually fits your business.

Call us today on 1300 109 778 or get a quote at morganinsurancebrokers.com.au

by Lauren Spice