In Australia, some types of insurance are required by law, including:
Workers’ compensation insurance. If you have employees, this insurance can cover employees’ wages and medical costs for work-related injuries or illnesses.
Public liability insurance. This insurance is compulsory for some industries or trades, including tradies like plumbers or electricians, under a state-issued license. It covers damages/loss or injuries to another person or property.
There are a couple of insurance policies you may be required to have if you have a small business, including public liability cover. Some industries may also benefit from additional insurance for cyber liability and machinery breakdown. Small business owners should assess their risks and take out cover accordingly.
Different industries also have different mandatory requirements for business insurance. For example, medical practitioners, financial advisors and architects must have professional indemnity insurance to cover their liability if something goes wrong with their professional advice or service to clients.