Understanding commercial insurance

Commercial insurance helps protect your business from financial loss caused by events such as property damage, legal claims, or business interruption. It helps safeguard your assets, operations, and staff so your business can recover and keep running after a setback.

What’s the difference between business insurance and commercial insurance?

There is no difference between business insurance and commercial insurance. The terms are used interchangeably in Australia to refer to insurance for businesses of all sizes.

How does a commercial insurance policy work?

Commercial insurance refers to a mix of policies and types of cover that each protect against specific risks. You pay a premium to your insurer, who agrees to cover the events listed in a policy.

Depending on your business, this might include protection for property, machinery, staff, and third-party claims. Your cover can help your business recover faster after an incident and supports long-term continuity.

Common commercial insurance types in Australia

Public Liability

Covers you and your business in the event a customer, supplier or a member of the public brings a claim against you due to their being injured or sustaining property damage as a result of your negligent business activities.

Product Liability

Protects your business against claims by third parties relating to property damage or personal injury caused by your products. It typically forms part of a Public Liability policy.

Professional Indemnity

Protects you against losses claimed by a third party due to alleged or actual negligence in your professional services or advice. Subject to applicable limits, your Professional Indemnity insurance will meet the associated compensation payable to a third party together with your defence costs (which can include legal costs, investigator costs and expert fees).

Contents

Covers your business contents or stock if they are damaged in a fire, storm or due to malicious damage or some other defined event listed in the policy.

Business Interruption

Cover for financial loss as a result of an interruption to your business caused by an insured event.

Cyber Liability

Covers losses from claims arising from data breaches, business interruption and remediation costs following an actual or threatened data breach.

Management Liability

Covers claims of wrongful acts in the management of the insured business and can include directors and officers liability, employment practices liability, crime, statutory liability and tax audit.

Machinery Breakdown

Covers the cost of having nominated machines in your business, such as refrigerators and air conditioners, repaired or replaced following a breakdown.

Workers’ Compensation

Required in all states and territories for businesses with employees. Covers medical costs and lost wages for work-related injuries or illness. (Please note: BizCover does not offer Workers’ Compensation insurance.)

Compulsory Third Party (CTP)

Required for all registered vehicles. Covers injury or death caused to others in a vehicle accident. (Please note: BizCover does not offer Compulsory Third Party insurance.)

Who needs commercial insurance?

Any business that owns property, employs staff, interacts with customers, or provides professional services may want to consider commercial insurance, including:

• Retail and hospitality – cafes, restaurants, and shops that rely on foot traffic and premises-based trade.
• Trades and construction – builders, electricians, and contractors exposed to on-site and equipment risks.
• Professional services – accountants, architects, consultants, and engineers offering advice or specialist expertise.
• Manufacturing and logistics – operators that produce, store, or move goods.
• Healthcare and community services – clinics, aged care providers, and disability support organisations.