Australians thinking of setting up their own businesses have been reminded they need to also consider taking up insurance to protect their new source of income.

Comparison site Finder says business insurance is a “safeguard” for the thousands of Australians who have become their own bosses, spooked by job insecurities after the pandemic broke out in March 2020.

Citing Australian Bureau of Statistics data, Finder says the economy saw 365,480 new businesses trading in the last financial year, an 8.6% rise from the previous 2019/20 fiscal period.

Finder says the number of new businesses seen in the 2020/21 year is the highest since data collection began in 2013. Its analysis shows small businesses lead the way with a 15% increase in businesses employing 1-4 people.