Business Insurance for Startups
Written by Mark Vanzo
Managing Director of Smart Business Insurance
Last updated September 2026.
Startup Business Insurance Quotes*
Whether you operate a tech startup or have opened a new cafe, nail salon or professional services business, wherever you are based in Australia, if you want to protect yourself and your start up you need a suitable insurance cover.
Many Business Owners are UNSURE if they are COVERED PROPERLY.
We help them find affordable and SUITABLE INSURANCE so they can run their business with CONFIDENCE.*
Get a Quote
- Answers to Questions
- Suitable Cover
- On Your Team
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How much does insurance cost for startup businesses?*
The cost of business insurance will vary significantly and many startups may need to pay a little or lot more per month to cover their business suitably.#
Our helpful business insurance brokers may be able to help you find suitable and affordable insurance for your startup.
#Depending on how many covers you select, the cover limits, excesses, your industry, the size of your team, the previous experience of the directors of the startup and your location the cost of cover will vary and certain insurance companies may offer better terms for your startup.
Our brokers are specialist in finding suitable and affordable cover for business startups and may obtain multiple quotes on suitable insurance policies that you can pay monthly for your from leading insurance companies such as Vero, Zurich, AIG and specialist underwriters.
TALK to a SMART Insurance broker on 1300 542 573 or contact us online for SMART insurance cover for your startup.
What types of insurance does a startup need?*
The type of insurance cover a startup will need will depend on its business activities and scale. All Australian startups will require at least public liability and tech startups will also require cyber insurance.
Below are just some of the types of insurance protection that startup founders should consider.
- Public Liability – a key cover for all Australian businesses; including startups
- Professional Indemnity Insurance – for startup professional firms that provide advice for a fee
- Commercial Property Insurance – for startups that operate from commercial property
- Product Liability – For protection against damages caused by your business products.
- Commercial Vehicle Insurance Cover for your work vehicle/s.
- Cyber Insurance Protects you and your startup where damages involve internet or customer data. Cyber cover is essential for tech startups.
- Management Liability Insurance For claims arising from employee relations, OH & S and discrimination.
- Business Insurance Pack – you may be able to combine multiple covers for your startup in a business pack. Ask your SMART broker for details.
- Workers Compensation Insurance – for startups with employees
For further reading on insurance covers for startup business click here.
Want your QUESTIONS on Business Insurance ANSWERED?
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- Answers to Questions
- Suitable Cover
- On Your Team
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Insurance quotes for Startups from the SMART team of Brokers*
Tech startups will require at least public liability and cyber insurance. It also likely that they will require a business insurance pack and some of the other types of covers above. To find out what type of insurance your tech startup needs call us on 1300 542 573 or contact us online.
What startups need to know about insurance*
- We act for you – the startup founder – not the insurance company
- You’ll receive a competitive quote on a suitable policy
- You receive responsive friendly service.
- You’ll receive a competitive rate on a suitable policy year after year
- You’ll have us in your court if you need to claim
- Monthly payment options
- We’ll do the leg work for you!
When Should a Startup Take Out Business Insurance?
A startup may wish to take out commercial property insurance as soon as they obtain their assets. They may wish to take out public liability and professional indemnity insurance once they start trading and provide their products/services.
Does a Startup Need Insurance Before It Starts Generating Revenue?
If the start up is employing staff , subject to the requirements of the state their workers reside in, Workers Compensation would be required.. Many start ups also take out insurance to cover their third-party risks (public liability, professional indemnity, cyber liability) prior to generating revenue.
What Insurance Do Investors or Enterprise Clients Commonly Require From Startups?
Investors frequently require the startup to have business insurance and management liability insurance in place. Enterprise clients frequently require the startup to have public liability, professional indemnity and/or cyber insurance in place.
Are Startup Founders and Directors Covered by Business Insurance?
If the Startup Founder/Director is concerned about being held liable for wrongful acts relating to the management of the company, they would need Management Liability or Directors & Officers Liability insurance. If the Startup Founder/Director works under their own company, and is concerned about being held liable by their clients for the professional services they provide (e.g. a startup web development agency where all work is done by the director), they would need professional indemnity insurance.
Are Contractors, Freelancers and Remote Workers Covered by Startup Insurance?
There is generally vicarious liability cover under professional indemnity policies for work performed by contractors, freelancers, and remote workers. This covers the policyholder for being held legally liable for work performed by contractors and freelancers. Check with your insurance broker as some policies have exclusions , especially for remote workers.
How Should Insurance Change as a Startup Hires Staff and Grows Revenue?
Hiring staff may require management liability insurance to cover employment and workplace health and safety issues, as well as workers compensation for worker injuries. As revenue grows, higher limits may be required for public liability, professional indemnity, cyber, or business interruption among other covers.
Does a Tech Startup Need Cyber Insurance if It Stores Customer Data?
If the Tech startup requires support in responding to data breaches, then they need cyber insurance.
Can Startup Insurance Cover a Business With Customers in Other Countries?
Yes, Start Ups can be covered for customers located overseas if the territorial and jurisdictional limits extend appropriately. If this is a coverage you would like, ensure you specify this to your insurance broker. Take care to note exclusions in jurisdictional limits. North America is often excluded.
