General FAQs

What insurance a startup needs in Australia depends on what you build, who you sell to, and what your contracts require. A SaaS business selling to corporates will often be asked for different cover to a hardware startup selling physical products.

Many startups look at professional indemnity, which is designed for claims that your service, advice, or product performance caused a client financial loss. Cyber insurance is also common, especially if you rely on systems and data, because it can be relevant for incidents like hacking, ransomware, data breaches, and business interruption, depending on the policy. Management liability or directors and officers insurance is often considered once there are directors, a board, or external investors, because it can respond to certain claims made against directors and managers, and sometimes the company, depending on the wording.

Public and product liability can also be relevant for third party injury or property damage linked to your operations or products. Workers compensation is usually required once you hire employees, with rules varying by state and the working arrangement.

Example: A SaaS startup selling to corporates is often asked for professional indemnity and cyber, while a hardware startup may need product liability earlier because it is supplying physical goods.

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