Business Insurance – Monzi’s Simple Guide

Business insurance protects your business in the event that something goes wrong. Put yourself in the best position by finding a policy that suits your business’ needs and potential liabilities. Whether you’re a large or small business, there are policies designed to suit you. Keen to know more? Read on and Monzi will break it all down for you. Let’s go.

Please note, certain ideas and products presented in this article may not be offered by Monzi nor the lenders we work with. This article presents only general information. Consider seeking professional financial, taxation, legal or other advice to check how the information and ideas presented on this website relate to your unique circumstances.

Business insurance Australia

You insure your car, home and even your pets, so why wouldn’t you insure your business?

In short, insurance protects your organisations from losses, damages and expenses that occur through the normal course of business. Whether it’s an equipment breakdown, an injury to an employee or even a natural disaster that affects your business’ viability, there is a policy that can provide the coverage you require.

However, insurance isn’t free. In order to access this protection, you must pay a premium. This is simply a monthly amount determined by your insurer based on your policy.

While that covers the basics, there’s so much more to know. Read on and we’ll dig deeper into business insurance and what you need to know. Let’s go.

Business insurance quote

Get an idea of what your costs will be with an insurance quote. In short, this is an estimate of your premiums based on the features of business and the policy that you’re looking at.

Getting a quote is arguably the most important step in selecting an insurer. Once you receive it, you can then use it to compare insurers to find which one is the most affordable, while still providing the cover that you require.

Most insurers will provide quotes online. Simply head to their website and enter the details that are required. You could be comparing potentially options in no time.

What is the best insurance for small businesses?

In short, Monzi is unable to say. However, there are plenty of small business insurers who may be able to help. Do a quick Google search and you will be inundated with options.

However, one thing to note is that if you’re looking for small business insurance, you must ensure that you are eligible. Insurers differ in their criteria for what defines a small business. For some, it may relate to employee numbers whereas for others it may depend on your turnover. As a result, ensure that you read the fine print.

Do I need to visit a insurance broker?

In short, it’s up to you.

An insurance broker is a specialist in the field and can make it easy. Moreover, they can often save you money too.

In most cases, they will act on your behalf and provide advice that’s in your best interests. Given that they are experts in assessing risk, they can help you choose the policy that provides adequate coverage at the right price.

In saying this, it is still absolutely possible to do it yourself. Insurance brokers have their benefits, however, with the range of information available online there’s nothing that you can’t do yourself.

What types of business insurance are there?

In short, there are a ton of different insurance types. While some may overlap, others may be industry or business-specific. As a result, you will need to investigate different policies to find the one that matches the needs of your business.

Through your research you may find that you only require a single comprehensive policy. On the other hand, you may need to hold multiple policies at once. It will simply come down to the features, assets and make-up of your business.

To help you out, we’ve provided a quick breakdown of some of the more common types of insurance. See below:

Business car insurance

You can’t be on the road without insurance. If you’ve got cars, trucks or other vehicles as part of your business then you may be able to access specialised car insurance that may protect you in the event of an accident.

Business interruption insurance

Business interruption insurance covers you for the period of time it takes to complete repairs or source new equipment in the event that damage or theft occurs. This may include catastrophic events such as fire or natural disasters (e.g. flooding).

Business interruption insurance can cover the following:

  • Any lost revenue
  • Any increased operating costs required to maintain your business
  • Increased operating costs that do not relate to revenue
  • Covers the progressional fees needed to prepare your claim
  • Any outstanding debts you can’t recover.

Business expenses insurance

Business expenses insurance covers the fixed costs of your business if you are injured or sick. After all, your business expenses will not disappear while you are out of action.

This type of insurance can you pay for things like:

  • Rent or lease costs, as well as property taxes.
  • Electricity and other essential utilities.
  • Any current leases you have on equipment or vehicles.
  • Insurance premiums.
  • Salaries of your employees.
  • Maintaining business machinery.
  • Any regular marketing or printing costs.

Business public liability insurance

Public liability insurance is a must for most businesses. In short, it covers the costs of damages that result from incidents involving members of the public and your business. This may include injury (i.e using your product) or damage to their property.

Business contents insurance

Contents insurance will provide protection for your possessions, assets and equipment in the event of theft or damage. Whether it’s furniture, equipment or tools, your insurer will cover a portion of the replacement or repair costs.

Other insurance options

While we’ve covered four popular options above, the number of potential types of business insurance is vast. Therefore, you could also consider applying for one or more of the following:

  • Property. Protects against any damages or losses to your office, its contents or your stock.
  • Product liability. Protects you against any damages caused by the faultiness of one of your product.
  • Professional Indemnity. If you offer professional advice and one of your clients suffers a loss as a result, you are protected.
  • Theft. Self-explanatory; protects you against any loss or damages to your stock during a burglary.
  • Tax audit. If the ATO decides to audit or investigate your company, your policy covers the cost.
  • Deterioration of stock. In the event your stock being ruined by a broken freezer or refrigeration unit.
  • Glass. You guessed it – covers you against any damaged glass.
  • Property in transit. If you import your stock, this policy protects you against anything breaking during the shipment.
  • Electronic equipment. Any damages or losses to your computers, data or other electronics.
  • Cyber liability. Protects you against the myriad risks round online, like fraud or hacks.

What kind of business insurance do I need?

The right insurance policy for your business depends on a number of different factors. For example, the industry you are in, as well as the size of your company can all affect which policy you need.

Therefore, consider the following table.

Do you manufacture items that are sold to the public?Product liability insurance
Do you do business with customers in public or at your premises?Public liability insurance
Do you give professional advice?Professional indemnity insurance
Do you employ any staff?Workers compensation, employee fraud and/or dishonesty insurance
Do you have specific items that need protection, like machinery?Machinery breakdown insurance, electronic equipment insurance
Do you conduct most or all of your business digitally?Cyber liability insurance

Business interruption vs. business expenses insurance

Business interruption insurance and business expenses insurance are not the same thing. Each of these insurance policies, specifically, covers different types of losses in different situations.

For example, interruption insurance may cover the loss of your regular revenue as well as any increased production costs. However, this is only if your actual business has been damaged or forced to close.

On the other hand, expenses insurance can cover fixed business expenses if you personally become too sick or injured to work.

Calculating your business interruption insurance

To calculate how much insurance you need, you first need to work out how much revenue you expect to make over the coming year. Next, you need to estimate how long it will take you to rebuild your business from scratch.

This may sound confusing and overwhelming, but it’s actually relatively straightforward. Here’s what you need to do:

  1. Estimate revenue. Gauge what revenue you will make over the next 12 months by first looking at the toal sales from last year. Then, estimate what you will make this coming year by taking into account market trends and the performance of your business.
  2. Rebuild time. If your business was completely burned to the ground and you lost everything, how long do you think it would take to get back to normal? Your answer will be the amount of months you need to be covered, known as an indemnity period.

You then pass this information on to your insurer. If the time comes to make a claim, your insurer will work out the rest. In short, however, insurers divide the figure from step one by the number of months you need to rebuild your business.

Finally, there are online business interruption worksheets online that can help you work out next year’s revenue.

How does workers compensation work?

Workers compensation insurance protects you in the event one of your employees is injured or falls sick while at work. More specifically, it ensures your employee access adequate treatment, compensation and rehabilitation.

Workers compensation insurance is compulsory for every employer in Australia. While the various workplace laws differ from state to state, workers compensation is compulsory across the board.

Finally, bear in mind that this does not only apply to your employees on full-time contracts. Moreover, it also applies to any contractors you employ.

Cheapest insurance for small businesses

Reducing your premiums is the sure-fire way to access cheaper insurance. However, that comes at a cost. Lower premiums will usually be offered for two reasons:

  1. You select reduced coverage.
  2. You select a higher excess.

In short, premiums relate to risk. The greater the insurer’s risk, the higher your premiums will be. By selecting a more limited policy or assuming a greater proportion of the costs (via a higher excess), you’re reducing your insurer’s risk. As a result, your premiums may be lower.

Obviously though, the trade-off is that should something go wrong, it may cost you more. You will have to weigh up the pros and cons to determine if cheap insurance for small business is a good idea.

Business insurance high shot of modern cafe with customers

How do I compare insurance policies online?

Comparing insurers online really isn’t as difficult as you might think. However, it can be time consuming. There are a ton of business insurers in the market meaning taking the time to investigate the policies on offer can be a tedious process.

On the other hand, there are a number of insurance comparison websites who will do the work for you. In short, they’ll put lenders side-by-side so you can get an idea of their policies and costs. From there, you can decide which might be the right one for you.

If you’re not sure how comparison websites work, that’s OK. MoneySmart provides an easy breakdown so you know exactly what’s involved.

How do I buy insurance?

Finding an insurance policy really isn’t as difficult as you may think. Insurers want to get you on-board meaning they may be willing to tailor certain features of your policy to suit your business.

However, if you’re not sure where to begin, follow these easy steps:

  1. Assess your business: what are the risks to your business? Consider everything from injury to natural disasters. That way, you can determine the level of cover you require.
  2. Find a broker: insurance brokers can help gather quotes from a range of coverage providers and help talk you through selecting the right one.
  3. Compare quotes: don’t agree to your first offer. Compare insurers and policies to find one that’s suitable and affordable.
  4. Re-evaluate every year: don’t just renew your insurance annually because that’s easier. Assess your business to determine what’s changed and what your liabilities are. Contact your insurer to discuss how these changes may affect your policy.

How much does business insurance cost?

In short, costs will vary.

In most cases, you will must pay a monthly or annual premium. This is simply the cost of your policy. Unfortunately, there’s no one size fits all.

As a result, the amount of your premium will be determined by your level of cover, insurance type as well as features unique to your business.

Given this, it’s crucial to select a policy that adequately covers what you need while still ensuring your premiums are affordable. As a result, you will need to do your research.

What are the requirements for purchasing small business insurance?

In order to ensure that you are eligible, there are a few key details that insurers will require when you apply. These include:

  • Your industry and business category
  • The cover that you require
  • Your business’ location
  • Expected annual turnover
  • Business structure
  • Are you a tenant, owner-operator or do you work from home?

Based on this information, insurers will generate a quote of what you must pay. Compare quotes from different insurers to ensure that you get the most affordable cover.

Is it illegal to not have insurance?

In short, it will depend on your industry, business-type and regulatory environment. In most cases, insurance will be optional. However, it’s usually highly recommended given the considerable expense it could potentially save you from.

In saying this, in some cases, certain types of business insurance will be a legal requirement. This could be to protect you, your employees or even the public. As a result, do your research to determine if this applies to your business.

What happens if I don’t have insurance?

Without insurance, you will be liable to cover the full costs of any expenses that you incur. This can range from equipment replace to third party liability as a result of injury that occurs on your property or is caused by one of your products.

Obviously, if you’ve got considerable cash reserves this won’t be an issue. However, for most businesses, the margins are razor thin. In other words, paying a monthly premium to protect against major, unexpected expenses is often a shrewd move.

Which insurance companies offer cover for businesses?

In Australia, the insurance market is extremely competitive. If you’re searching for a policy, this is great news. It means that you have the opportunity to shop around and compare deals to find the one that suits you business.

To start you off, some of Australia’s prominent business insurers include:

  • QBE
  • Allianz
  • Youi
  • GIO
  • AAMI
  • NRMA

This is by no means an extensive list, however, it provides a few choices to get you started. Research and compare your options to find the policy that’s right for you. If you’re looking for something different, it may be possible to access insurance policies through your bank too.

Do I really need insurance?


For almost every business, insurance is a good idea. Moreover, in some cases it may even be a legal requirement.

While your cover will depend on your policy, you can potentially protect yourself from a range of different issues. This includes equipment breakdowns, disruptions to your business, loss of inventory as well as injury to yourself, an employee or customer to name a few.

In short, while the peace of mind is valuable, the money it can save in you in the event that something goes wrong is even more valuable. Insurance could even mean the difference between staying afloat and going bust.

So, if you’re starting a business, make sure you investigate your insurance options. If you’re not sure where to begin, consider seeking professional advice.

How to make a claim

Insurers do not pay out claims no matter what. Therefore, it is important you make a claim properly.

The first step, in short, is to collect evidence of your claim. Moreover, some great examples include:

  • photographs
  • notes
  • computer records.

If a crime was the cause of your claim, be sure to report it to the police and relevant authorities as soon as you can.

Finally, remember that it is essential you be completely honest with your insurer at all times. If you fail to provide details which you later rely on, your insurer may refuse your payment. This could also affect your future insurance rating.

I’m unhappy with my insurers response – can I dispute it?

Yes, absolutely!

If you are unhappy with the actions of your insurer, first check the PDS to ensure you fully understand the details of your policy. From there, get in touch with the insurer’s internal complaints department, outlining:

  • the fact you’re lodging a dispute
  • details of the problem
  • how you would like the insurer to respond.

If you, finally, are unsatisfied with their response, you can escalate the dispute to the Australian Financial Complaints Authority (AFCA).

Business insurance and Monzi

While we’ve done our best to break down insurance for you, unfortunately, it’s not a product we offer. As a result, you will need to do your own research to find an insurer that can provide the cover you need.

However, what we can offer is a simple and convenient lender-finder service. In short, if you require a personal loan from $300 to $10,000 then Monzi can help. Just submit one easy online loan application and you might be paired with a lender in just 60 minutes. Loans that may be offered include:

Small personal loan
  • $300 to $2,000
  • Unsecured
  • 12 month term
Medium personal loan
  • $2,001 to $4,600
  • Secured
  • 13 to 24 month term
Large personal loan
  • $5,000 to $10,000
  • Secured
  • 13 to 24 month term

Keen to begin? Put simply, you can scroll up and use the loan slider to begin your application today.

Alternatively, find out more with Monzi today. Check out our guides to choosing a home insurance policy or business loans Australia.

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You won't use a penny to apply for our lender-finding service, but here's some costs you could expect from a lender

Loan amount

$300 - $2,000


12 months (minimum)

12 months (maximum)


20% upfront establishment fee

+ 4% monthly fee


Representative example based on a loan of $1000 over 6 months a borrower can expect to pay a total of $1440.

Disclaimer: Under the current legislation, all Small Amount Credit Contract loan providers don’t charge an annual interest rate. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The comparison rate on loans between $300 and $2000 could be up to 199.43%. The minimum loan term is 16 days and maximum loan term is 12 months. Representative example based on a loan of $1000 over 6 months a borrower can expect to pay a total of $1440. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan.

Loan amount

$2,100 - $4,600


13 months (minimum)

24 months (maximum)


47.8% Annual Percentage Rate (APR)

65.85% Comparison Rate p.a.


Representative example based on a loan of $2500 over 24 months a borrower can expect to pay a total of $4,556.88.

The maximum interest rate for a Medium Amount Credit Contract is 47.8%. Comparison Rate 65.85% p.a. The maximum loan term is 24 months. Representative example based on a loan of $2500 over 24 months a borrower can expect to pay a total of $4,556.88. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Credit criteria and terms and conditions apply.

Loan amount

$5,000 - $15,000


13 months (minimum)

24 months (maximum)


17% Annual Percentage Rate (APR)

36% Comparison Rate p.a.


Representative example based on a loan of $10,000 over 36 months a borrower can expect to pay a total of $16,489.

The starting interest rate for a Personal Loan is 17%. Comparison Rate 36% p.a. The maximum loan term is 24 months. Representative example based on a loan of $10,000 over 36 months a borrower can expect to pay a total of $16,489. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Credit criteria and terms and conditions apply.