Running a business comes with its fair share of risks—accidents, lawsuits, property damage, or even cyber threats. That’s why commercial insurance isn’t just smart; it’s essential. But how many types are there? And which ones do you actually need?
What Is Commercial Insurance?
Commercial insurance (also known as business insurance) refers to a group of policies designed to protect businesses, employees, and assets from financial loss. Whether you’re a tradie, retailer, consultant, or operate a large corporation, there’s insurance tailored to your risks.
Main Types of Commercial Insurance in Australia
While there are dozens of specific policies available, most commercial insurance options fall under a few core categories:
1. Public Liability Insurance
This is one of the most common—and often legally required—types. It covers you if someone is injured or their property is damaged due to your business activities.
🧾 Example: A customer slips on your store floor and breaks their arm. This policy helps cover legal and medical costs.
2. Professional Indemnity Insurance
Ideal for consultants, accountants, engineers, and anyone offering advice or services. It protects you against claims of negligence, mistakes, or breach of duty.
🧾 Example: You’re an IT consultant and a software error you implemented causes financial loss for a client.
3. Product Liability Insurance
If your business manufactures or sells products, this is a must. It covers injuries or damage caused by faulty or unsafe products.
🧾 Example: A kitchen appliance your company sells causes an electrical fire.
4. Commercial Property Insurance
Protects your physical business premises and contents—like furniture, equipment, and stock—from events like fire, theft, or vandalism.
🧾 Example: A storm damages your office roof and destroys computers inside.
5. Business Interruption Insurance
Covers lost income if your business is unable to operate due to an insured event, like a natural disaster or major equipment failure.
🧾 Example: Your café is forced to shut down for a week due to flood damage.
6. Cyber Liability Insurance
With data breaches and online threats on the rise, this is crucial for any business operating digitally. It covers legal costs and loss related to cyber incidents.
🧾 Example: Hackers steal your customer database, and you’re sued for data negligence.
7. Workers’ Compensation Insurance
A legal requirement in all Australian states and territories, this covers employees who suffer work-related injuries or illnesses.
🧾 Example: An employee injures their back lifting stock—this policy covers medical costs and wage replacement.
8. Commercial Vehicle Insurance
If you use vehicles for business purposes, this covers them against damage, theft, and third-party liability.
🧾 Example: Your delivery van is involved in an accident—this policy pays for repairs or replacement.
9. Management Liability Insurance
Protects company directors, officers, and management against claims of mismanagement, misconduct, or regulatory breaches.
🧾 Example: A former employee sues your HR manager for wrongful dismissal.
Final Thoughts
There isn’t a one-size-fits-all answer—the number of types of commercial insurance depends on your business’s size, industry, and risks. Some businesses may only need one or two policies, while others require a more comprehensive package.
That’s where we come in.
Need Help Choosing the Right Cover?
At Auswide Insurance Brokers, we don’t believe in cookie-cutter solutions. We assess your business needs and tailor an insurance package to keep you covered—so you can focus on growth, not risks.
Let’s secure your business—get in touch today.