Is business insurance compulsory in Australia?

Some is. Workers compensation is generally compulsory if you employ people, and some trades need public liability. Check your state regulator for the rules that apply to you.

Do I need public liability insurance as a new business?

It is required for certain occupations in some states and territories, and clients and venues often ask for it. Even where it is not required it is commonly worth considering.

Does workers compensation cover a sole trader?

No. Business.gov.au says it does not, so a sole trader needs separate personal cover.

What is professional indemnity insurance?

Cover for claims that your professional advice or work caused a client a financial loss. It is mandatory for some professions.

What insurance does a new business need in Australia?

Written by Jack Harrington and Gabriel Pozo, the founders of Urban Media, Melbourne. Updated 17 October 2026.

Insurance is one of the questions a founder leaves until something goes wrong. Some cover is compulsory, some is only needed for certain trades and some is a sensible choice. This guide sorts them, using business.gov.au.

It is general information, not insurance or legal advice. Rules differ by state and territory, so check your regulator and talk to a broker for your own situation.

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What is generally compulsory

If you employ people, workers compensation insurance is generally compulsory, bought from an authorised insurer. In Victoria that is the WorkCover scheme, which ABLIS lists as a registration for employers.

If your business uses motor vehicles, third party personal injury cover is usually part of the vehicle registration.

What is required for some occupations

Public liability covers you if someone is injured or their property is damaged because of your negligence. Some states and territories require it for certain occupations, and many venues, councils and clients ask to see a certificate before you work for them.

Professional indemnity is mandatory for some professions and covers claims that your advice or work caused a client a loss.

What is worth thinking about

Product liability, if you make, sell or supply goods, even through a repair or service.
Personal cover for a sole trader. Workers compensation does not cover the owner, so business.gov.au points sole traders to their own illness, injury and income protection.
Cover for your equipment, stock and premises against theft, fire and damage.
Cyber cover, if you hold customer data or take payments online.

If you hire contractors

Check with your state regulator whether workers compensation applies to the contractors you engage. Do not assume a contractor means no obligation.

How to work out what you need

List what could go wrong in your business, from an injured customer to a stolen laptop.
Check the compulsory cover for your state and your trade first.
Ask clients and venues what certificates they require.
Get quotes from a broker and compare what is covered, not only the premium.

Where Urban Launch fits

Insurance is not something we sell or advise on. Urban Launch builds the brand, the website, the photography and the ads, so you can get the paperwork right and we build the part customers see.

Official sources

This guide was checked against these official pages on 17 October 2026. Rules change, so confirm on the source before you rely on a detail.

More guides for new businesses

All of them are on the guides page.

Who is behind this

Jack Harrington and Gabriel Pozo, the founders of Urban Media, on a shoot in Melbourne

Urban Launch is built and run by Urban Media (ABN 28 169 446 902), a Melbourne studio founded by Jack Harrington and Gabriel Pozo. Urban Media makes video, design and websites for clients including Box Hill United, Brighton Grammar and Porsche Club Victoria.

If you want to talk to the people doing the work, call 0456 785 904. More about who we are, and how to check us, is on the About page.

Jack Harrington, co-founder of Urban Media, speaking to camera — Jack Harrington, co-founder of Urban Media, on how Urban Launch works. Captions are on screen.

Common questions

Is business insurance compulsory in Australia?: Some is. Workers compensation is generally compulsory if you employ people, and some trades need public liability. Check your state regulator for the rules that apply to you.
Do I need public liability insurance as a new business?: It is required for certain occupations in some states and territories, and clients and venues often ask for it. Even where it is not required it is commonly worth considering.
Does workers compensation cover a sole trader?: No. Business.gov.au says it does not, so a sole trader needs separate personal cover.
What is professional indemnity insurance?: Cover for claims that your professional advice or work caused a client a financial loss. It is mandatory for some professions.

Start with a Launch Call

Live and generating enquiries within 45 days, or we keep working at no extra cost until you are. The Launch Call is where we check it is the right fit before we book anything in. For a real example, read the Airwize case study (12 conversions, meaning leads that became sales, in the first month of Google Ads from $70 of ad spend, our figures). You can also read how a launch package compares with hiring separately, or go to the packages and prices on the homepage. If you are setting up from scratch, see the business start-up package.

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More: Brand and website package, Melbourne, Startup package for a new business, Melbourne, Branding, website and photography package, Melbourne.