Understanding insurance for home-based small businesses

Last updated on September 15, 2022 
Your business is your livelihood. Any unplanned costs incurred by the business when things go wrong can impact cash flow and business operation. That’s why it’s important to protect your business with adequate insurance cover.

Small businesses can be particularly vulnerable. That’s why identifying the right cover is key to protecting it. Details such as your business type, size, location and day-to-day activities are all important factors in determining the most appropriate insurance cover for your needs.

If you’re running any part of your business from home, it is also important to disclose the details of your business to your home insurance company to determine whether the business activity is acceptable under your home insurance cover. If your business activity isn’t acceptable under your home insurance cover, you may consider other options available to you and this may be through a range of business insurance covers such as public and products liability and general property covers depending on your business activities.

Our Home and Contents Insurance policies provide cover for some business activities operating from the home. Like many insurers, we rely on policyholders disclose accurate information to ensure correct insurance cover for their circumstances. By not disclosing all details, policyholders risk their business property not being covered. This also might impact a policyholder’s home or contents claim.

In 2022, we commissioned new research into First Nations small businesses and their insurance. The Indigenous Business Insurance Research Report (PDF, 5.2 MB) found that despite loss of property emerging as a key concern for First Nations small businesses owners, only 21% had general property cover (Indigenous Business Insurance Report, 2022), compared to 42% of Australian small businesses surveyed (Allianz Australia Research, 2019). To help First Nations home-based small business owners better understand the different types of insurance covers for their business, Allianz has created the Home-Based Business Insurance Toolkit (PDF, 2.0 MB) in collaboration with First Nations communications consultancy Iscariot Media.

If you have any questions about insurance cover for your small business or home, reach out to one of our friendly team members.


This article has been prepared by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL234708 (“Allianz”). In some cases, information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way.

Any opinions expressed constitute our views at the time of issue and are subject to change. Neither Allianz, nor its employees or directors give any warranty of accuracy or accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in this article.

Allianz acknowledges Aboriginal and Torres Strait Islander peoples as the Traditional Custodians of the lands on which we live and work across Australia. We pay our respect to First Nations Elders past and present.

Any advice here does not take into account your individual objectives, financial situation or needs. Terms, conditions, limits, and exclusions apply. Before making a decision about this insurance, consider the relevant Product Disclosure Statement (PDS)/Policy Wording and Supplementary PDS (if applicable). Where applicable, the PDS/Policy Wording, Supplementary PDS and Target Market Determination (TMD) for this insurance are available on this website. We do not provide any form of advice if you call us to enquire about or purchase a product.

Allianz Australia Insurance Limited ABN 15 000 122 850 AFS Licence No. 234708 is the insurer of any general insurance products offered, and Allianz Australia Life Insurance Limited ABN 27 076 033 782 AFS Licence No. 296559 is the insurer of any life insurance products offered. Each entity is responsible for any statements and representations made about its products, on this website.