When you start a small business, it’s often the physical things behind the scenes that help turn your idea into a livelihood. Whether that’s your customer seating, point-of-sale system, salon fit-out or specialised workshop machinery, these assets can represent a significant investment and play an important role in keeping your business running day to day.
And that investment can quickly add up. As of May 2026, the average loan used to finance a small business in Australia was $167,272, with machinery and equipment accounting for around 7% of borrowing.1 For office-based businesses, fit-out costs alone can be more than $18,000 per employee.2
With so much tied up in the items your business relies on, it may be worth considering whether you need small business insurance or business contents insurance to cover you if those assets are ever damaged, destroyed or stolen.
But what exactly does small business contents insurance cover? Is it the same as home contents insurance, and do you actually need it? In this guide, we’ll explain how small business contents insurance works and answer some common questions you may have to determine if your business may need cover.
What is business contents insurance?
First, we’ll look at what business contents actually are. Business contents are the items or equipment you use for your business, wherever you operate it from.3
This may include electronic equipment such as computer systems, hospitality items such as commercial cooking equipment or furniture, or for tradies it could mean their tools.4
Business contents insurance provides cover for items like these if there’s damage or loss from theft, natural disasters, or other similar events.5
It isn’t a mandatory type of business insurance,3 unlike workers compensation cover or, sometimes, public liability insurance,5 but some commercial leases may require the lessee to take out certain insurance policies before they can operate.6
What does business contents insurance cover?
What’s covered by business contents insurance will depend on the individual insurer and the different coverage options, limits and exclusions.7 At Youi, business contents insurance is available through two optional covers.
“The two optional covers – Business Property Damage and Business Items – can be added to eligible Small Business Insurance policies at an extra cost,” says Mervyn Hartley, Youi’s Head of Product – Home and Small Business.
“Business Property Damage can cover loss or damage to your contents at the business premises, and to your stock while it’s at the business premises or in transit within Australia.8
“Business Items is a slightly different cover in that it covers loss or damage to your portable business items anywhere in the world.9 If you take any of your business items with you to use away from your business premises, this optional cover may be useful.”
What items does business contents insurance cover?
Typically, business contents insurance may cover items such as furniture or office equipment.3 What specifically is covered by an insurer may vary, but at Youi, business contents we’ll cover under our Business Property Damage optional cover include but aren’t limited to:8
- Unused stationery and printed books
- Plant and machinery, such as unregistered forklifts and hoists
- Computers, word processors, printers, scanners and other electronic equipment
If you’re leasing a business premises, business contents may also include:
- Fixtures and fittings installed by you
- Installed screens, external blinds, cool rooms, awnings and security systems.8
Examples of items we may cover under our optional Business Items add-on include:9
- Mobile phones
- Photographic equipment
- Portable audio and video equipment
- Portable computer equipment
- Non-standard vehicles
- Tools of trade.9
When might small business contents insurance come in?
Now that you have a better understanding of how Youi defines business items and business contents, let’s look at some examples of how Youi Business Property Damage or Business Items optional cover might respond in different circumstances.
| Scenario | Relevant optional cover* |
| A fire breaks out in your restaurant kitchen, damaging stock and commercial cooking equipment. | Business Property Damage8 |
| Someone breaks into your store and steals your point-of-sale system. | Business Property Damage8 |
| Someone breaks into your locked vehicle and steals your tools. | Business Items9 |
| Your camera equipment is knocked over by guests at a wedding and is damaged. | Business Items9 |
| Your store is flooded, and your coffee machine is now damaged. | Business Property Damage8 |
| You are overseas on a work trip, and your computer is damaged in your luggage when you open it. | Business Items9 |
| The workshop equipment used in your business is old and has a mechanical breakdown. | Not covered |
| A piece of plant or machinery had an issue that you attempted to fix yourself using faulty parts and is now broken. | Not covered |
*These examples are illustrative only and do not guarantee cover. The cover shown is the optional cover that may be relevant to the scenario. Whether a claim is covered will depend on the facts of the claim, the cover selected, and the terms, conditions, limits and exclusions of the policy. For more details, see the PDS and Policy Wording.
What’s the difference between building and contents cover for small business?
Building insurance for a small business is sometimes called commercial building insurance.10 This covers the physical structure of a building that a business operates from – such as the walls, roof and ceiling – so it’s designed for business owners who own, rather than lease, the building they’re working in.11 In some cases, it may also cover permanent fixtures and fittings inside the building, but business owners may also consider separate contents insurance for business items, stock and equipment.10
Small business contents insurance – sometimes referred to as commercial contents insurance – covers the contents of your business for incidents such as theft or natural disasters.5
So, to recap: Building insurance covers the physical structure a business operates from, and contents insurance covers the items you use to run your business inside the premises. The type, or types, of insurance you might need to consider will depend on whether you own or lease a business premises, as well as what a commercial building insurance policy does and doesn’t cover.11
Are my business contents covered by home insurance?
The short answer – no. Running a business from home or conducting certain business related activities at home increases the potential risk of damage to your home and contents.11 In some cases, running a business from home may even void your home insurance if you don’t notify your insurer of your business activities.11
So, if you’re running a business from home, where does home insurance come in and where does small business insurance come in at Youi?
You can ask to add Business Items as an optional cover to an eligible Youi Home Contents Insurance policy.12 By adding this cover, accidental loss or damage to business items is treated as an insured event. For these claims, we’ll pay up to a maximum of $5,000.12
If you’re operating your business from home, you can choose to take out a Youi Small Business Insurance policy and ask to include Business Property Damage as an optional cover so your business contents – as well as stock – can be covered at your home for more than $5,000.8
You may need to consider other types of insurance if your home doubles as your business premises, such as public liability insurance if you have clients visiting your home.13
Are my business contents covered by my landlord’s insurance at a home I rent?
No.11 A landlord's insurance policy is typically designed to cover the rental property and the landlord's interests, rather than a tenant's personal belongings or business contents.
If you rent your home and keep business items there, such as tools, equipment or stock, you may need to consider separate insurance if you'd like cover for those items.
It's also important to check your lease agreement before running a business from a rental property, as most residential lease agreements say that you can’t use the property for business activities. You should let your landlord know about your business, as they’ll need to make sure it won’t affect their property insurance.13
Does your small business need contents insurance?
Now that you have an idea of what business contents insurance is, you may be wondering if it’s something your business needs. There are a few questions you can ask yourself:
- Do I use multiple pieces of equipment to help run my business?
- Could I continue to run my business if some or all of these items were damaged or unable to be used?
- Could I afford to replace equipment if it were damaged?
These questions could also help you determine your insured value and sum insured for your contents. The sum insured represents the maximum value of your insurance policy,14 which would be the amount your insurer would replace your covered items for after a claimable event. The insured value is the value or replacement value of your contents items.15
How much business contents cover do I need?
How much business contents cover you may need will depend on a number of factors, including the cost of replacing your contents if they were lost or damaged.14,15
“When calculating your insured value, it may be helpful to note down the contents you use to run your business,” says Hartley.
“If you choose to add Business Property Damage to your Small Business Insurance policy, you’ll select an insured value amount for your contents.8
“Taking the time to think about how much your business contents might cost to replace can help you select an insured value that reflects the needs of your business.”
To get a better idea of how much small business contents insurance costs, if you are reviewing your cover or want to explore cover options, consider starting a quote with Youi or giving our specialist advisors a call today on 1300 010 648.
1 Source: Money.com.au – Australian Business Statistics 2026, May 2026
2 Source: Qld Government – Office Accommodation Management Framework, n.d.
3 Source: Finder – Business contents insurance, April 2026
4 Source: Business Victoria – Find the right insurance, n.d.
5 Source: Australian Government Business – Types of business insurance, n.d.
6 Source: Small Business Commissioner NSW – NSW Retail Tenancy Guide 2022, July 2022
7 Source: Financial Rights Legal Centre – Understanding your Insurance Policy, January 2023
8 Business Property Damage cover is optional and an additional cost applies. Conditions, limits and exclusions apply. For full details, see the PDS & Policy Wording.
9 Business Items cover is optional and an additional cost applies. Conditions, limits and exclusions apply. For full details, see the PDS & Policy Wording.
10 Source: Finder – Commercial property insurance, November 2024
11 Source: WA Government – Home insurance and your business, April 2025
12 Additional costs, limits and exclusions apply. For full details, see the Home PDS.
13 Source: Australian Government Business – Home-based businesses, n.d.
14 Source: Insurance Council of Australia – Calculators, n.d.
15 Source: Moneysmart – Contents insurance, n.d.
