If you’re like most small business owners, you’ve probably been told you “need” this or that insurance policy — but no one ever explains why.
The truth is: not every business needs every policy. What you really need depends on what you do and what could go wrong.
What are you trying to protect?
Think about:
- Your tools or equipment
- Your business premises
- Yourself or your team (from injury, claims, etc.)
- Your income or cash flow
- Your liability if something goes wrong
Common Policies for Australian Businesses
| Policy Type | What It Covers | Who Usually Needs It |
|---|---|---|
| Public Liability | If someone is injured or their property is damaged | Almost everyone who deals with the public |
| Professional Indemnity | If someone claims your advice caused them a loss | Consultants, coaches, designers, etc. |
| Business Pack Insurance | Bundles property, theft, fire, equipment breakdown etc. | Retailers, trades, clinics |
| Workers Compensation | Required if you employ staff | Anyone with employees (legal requirement) |
| Cyber Insurance | Hacks, ransomware, client data loss | Businesses storing data or taking payments |
| Management Liability | Directors & officers cover + HR/legal risk | Pty Ltd companies with risk exposure |
What you might not need
Many businesses are sold:
- Excessive cover limits
- Products that don’t match their business model
- Add-ons they don’t understand
That’s where a good broker — or a second opinion — can help.
What We Do at Luma
We review your business risks and explain what’s:
Required
by law or contracts
Recommended
based on your industry
Optional
where the risk is low or rare
You decide what’s useful — and how you want to pay (commission or fixed fee).
Not sure if you’re under- or over-insured?