7 Types Of Insurance Every SME Needs


Many small business owners are absolute experts in their fields. They know everything there is to know about their subject of expertise, with the experience, skills, and confidence to build their own company.

What some SME owners may struggle with a little more are the administrative sides of running a business, such as the various types of insurance they should have.


While there are many sorts of insurance a business can purchase, here are seven that most SMEs should consider. Remember to talk to a professional before organising your SME insurance.

1. Public liability insurance

If you, one of your employees, or one of your products, causes harm, public liability insurance may cover your business. This could be anything from giving bad advice, causing property damage, making a customer unwell with a defective product, causing physical injury or mental distress, or even causing economic loss for others.

2. Property insurance

Anyone who has ever rented or owned a home will be familiar with the requirement for property insurance. Even if you don’t have an office and are working from home, your business needs property insurance to cover for natural disasters such as floods and earthquakes and accidents such as fires.

Property insurance also includes your business equipment, including items such as computers and laptops, desks and chairs, printers and scanners, meeting tables and telecommunications equipment.

3. Workers compensation insurance

State and territory legislation covers workers compensation, which is an essential insurance component for Australian employers.

This insurance gives your company protection against the financial hardship that arises after an employee suffers an illness, injury, or even death.

4. Automobile insurance

Third party car or motor vehicle insurance for injuries is compulsory in Australia, but there more options for more in-depth insurance. You can also purchase third party insurance to cover property damage, as well as fire and theft.

Comprehensive insurance is often the best option as it covers damage to your own vehicle as well. If you are paying off a company vehicle in instalments, your financier will likely insist on this option.

5. Business interruption insurance

There are many things that can interrupt your business for such a period of time that makes an impact on the company’s bottom line. If this were to happen due to an event such as a disaster, business interruption insurance may help you recover the income you would have made during the time you were forced to remain closed.

6. Professional indemnity insurance

Professional indemnity insurance products are designed to cover your costs in the case of litigation. This could be for a range of issues such as not meeting a target or quota on time, giving poor advice, not following through on promises, or making serious mistakes in delivering your product or service.

You may be able to find industry-specific insurance, so be sure to talk to your insurance broker about the best option for you.

7. Goods in transit insurance

If your business ships goods to customers or supply chains, you may consider insurance to cover the products while they are in transit. This usually covers damage incurred during the trip such as on planes, trains, in the post, on the road, or by courier.