How much does pub insurance cost?

01

How insurers assess a pub

Chubb, an insurer that writes business policies in Australia, names four things that change a premium.

• 1

  The kind of business

  Riskier businesses pay more. Chubb's example is a restaurant renting its space, which will likely pay more for property cover than a real estate agency renting its office.

• 2

  Where it is

  Premiums often reflect the risks of the area, such as floods or bushfires.

• 3

  Owning or renting

  Owners have the building to insure on top of what's in it, so they can expect a bigger bill than tenants.

• 4

  Claims you've made

  Insurers look into a business's past claims before quoting.

02

Wages and workers compensation in NSW

In NSW, the government insurer icare calculates the premium by multiplying a rate for your industry by the total wages your business pays. Rates differ between industries, as some jobs are riskier than others. Other states and territories have different laws, and we can explain the method used in yours.

03

Choosing your excess

If you claim, you'll pay a set amount yourself, called the excess, and your policy says how much it is. Moneysmart, the government's money guidance site, says in its home insurance advice that raising the excess could cut the premium. At renewal, get your broker to compare the premium with a higher and a lower excess.

An insurer must give you a product disclosure statement (PDS), business.gov.au says. It explains the policy and shows any excess you'd pay.

04

Tax and levies on the premium

Every state charges insurance duty, a tax calculated on the premium. The Insurance Council of Australia, an insurance industry body, campaigns against taxes like these. It says government taxes and charges can add 20 to 40% to a premium, depending on where the business is.

1. 1

   New South Wales9%

   Property insurance premiums in NSW also include the Emergency Services Levy. The Insurance Council says the levy raises business premiums by up to 34% on average.

2. 2

   Victoria7%

   On business insurance taken out or renewed from 1 July 2026 to 30 June 2027. The rate drops 1% each year until the duty ends on 1 July 2033.

3. 3

   Queensland9%

   Counting GST.

4. 4

   Western Australia10%

   Of the whole premium, GST included.

5. 5

   South Australia11%

6. 6

   Tasmania10%

   Worked out on a premium that includes commission, GST and the fire service levy.

7. 7

   Northern Territory10%

In the ACT, check with the ACT Revenue Office whether any insurance duty applies.

05

When you insure for less than it's worth

Many business policies have an averaging clause, according to a fact sheet from the Insurance Council and the National Insurance Brokers Association (NIBA). If property is insured for only a share of its current value, that clause lets the insurer pay just that share of a claim. Their example is a damaged building with too little cover.

Averaging can apply to commercial building, business contents and business interruption policies. Section 44 of the Insurance Contracts Act 1984 limits how insurers use it and requires them to explain it clearly.

06

How brokers are paid

Our brokers act under the financial services licence of Community Broker Network (CBN). CBN's Financial Services Guide explains its services and fees. The insurer, or an underwriting agency acting for it, pays CBN a commission of 0 to 30% of the premium before government taxes and levies.

You may also be charged a broker fee, which depends on how complex the work is and appears on your invoice. If the policy is cancelled, the broker keeps that fee.