What are the Two Types of Insurance for Business?

July 3, 2023
Small Business

There are a number of insurance policies that are available for your business, from insuring your company car to covering claims made by the general public. You can get insurance for just about any situation – however they fall into two broad categories, compulsory and non-compulsory. 

Compulsory Insurance

It can sometimes be difficult to know which type of insurance is actually mandatory for your business. Some are a legal requirement, others may be required under contract conditions for a particular job, or are an expectation of an industry body. 

  • Workers Compensation – If your business employs staff, workers compensation is a compulsory insurance to have in Australia. It will cover your workers for accidental work-related illness or injury.
  • Compulsory Third Party (CTP) – It is a mandatory requirement in Australia to have CTP insurance for your vehicle, including business vehicles. Many states will include CTP insurance in your rego, however NSW, QLD and SA do not.
  • Product and Public Liability – Although not compulsory nation-wide, product and public liability insurance is mandatory in some states such as Queensland. Along with this, certain professional bodies and contracts may specify the need to have a public liability policy.

Non-compulsory Insurance 

There are many types of non-compulsory policies that although aren’t mandatory by law, are highly recommended in most cases, or are required by your Industry Body. These include, but are not limited to:

  • Professional Indemnity – If your business provides professional advice to clients, professional indemnity insurance is important. It can cover claims of negligence, error or omission against your business. PI cover may be compulsory by your Industry’s Body. 
  • Burglary and Theft – Whether you’re a tradie who needs Tools of Trade insurance or just looking to protect your business from theft of stock, it’s important you’re covered when things go wrong. 
  • Business Interruption – Damage caused by fires, storms and other unforeseen incidents can lead to a business shutdown while repairs are undertaken. It’s important to consider business interruption insurance to cover the financial impact during those in difficult times. 

As always, your insurance is up to you. For great insurance and peace of mind, give us a call.

Let’s talk! There are 3 easy ways to get a quote for public liability insurance: 

  1. Call 1300 540 156 to speak to our dedicated tradie broker team
  2. Fill out our online Contact Our Experts form 

Go online and fill out the Quote form


Disclaimer: You should consider if the insurance is suitable for you and read the Product Disclosure Statement (PDS), Financial Services Guide (FSG) and policy wording before making a decision to acquire insurance. Please ask us for more details before we provide you with our services. Our FSG is available on our website.

Legal Disclaimer: The content – including publication links – on this blog and website are intended only to provide a general overview on matters of interest. It is not intended to be comprehensive nor does it constitute legal advice. We attempt to ensure that the Content is current but we do not guarantee its currency. 

General Advice warning: To the extent that any material in this document may be considered advice, it does not take into account your objectives, needs or financial situation, and is considered general in nature only. You should seek legal or other professional advice before acting or relying on any of the Content. All insurance policies contain exclusions of cover, and no claim is guaranteed. Refer to the Product Disclosure Statement.

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