Insurance for Sole Traders

Why Do Sole Traders Need Insurance*?

Australia is home to over 700,000 sole traders¹, and it’s no mystery why. Sole traders enjoy a lot of freedom, from setting their own hours to choosing the people they work with. It’s good to be the boss!

But when you’re flying solo, you’re also personally responsible for every part of your small business. If anything goes wrong, it’s up to you to fix it. Mistakes, accidents and other unplanned events can be expensive, potentially draining your finances and putting you out of business. That’s where sole trader insurance could help.

Sole trader insurance—our name for business insurance policies designed for the needs of sole traders and the self-employed—can help you cover a long list of unexpected events that could impact your small business.

What Insurances Do Sole Traders Need?

A sole trader can work in any occupation, from accountants and electricians to real estate agents and yoga teachers! As you can imagine, the insurance needs of a tradie will probably be different than those of an IT professional. Luckily, there are many insurance options that can help you address the unique risks of your small business.

Here are common types of sole trader insurance that you might consider for your business:

Public Liability

Dealing with people face-to-face is a part of many sole traders’ jobs. You might meet clients in your office or at theirs, visit different work sites, or accept deliveries to your place of work. Public Liability insurance helps shield your business against injuries and property damage claims brought by these people or other third parties.

Public Liability insurance for sole traders is designed to protect your business if a customer, supplier or a member of the public claims they were injured or sustained property damage as a result of your negligent business activities.

Commercial landlords typically require that their tenants have Public Liability insurance. If you rent an office or other workspace, you’ll probably be asked to show proof of insurance before signing a lease.

Professional Indemnity

If you provide your clients with expert advice or recommendations, you might want to consider Professional Indemnity insurance. We’re sure you’re always careful, but mistakes can still happen. An error in your work could cause big problems for your client and an expensive claim for you!

Professional Indemnity insurance is an important form of protection for sole traders that provide professional advice or specialist services. It is designed to respond to claims against your business for losses that result from actual or alleged negligent acts or omissions in the provision of your professional advice or service. This coverage also assists with the legal costs associated with responding to or managing claims which are covered by the policy.

Even the most skilled and professional sole traders can still have a claim made against them. An unhappy client might feel that you’ve acted negligently or simply be unhappy with the service you provided them. Professional Indemnity insurance covers your business against both claims that do have merit and those that do not.

Business Insurance

No two days are the same when you’re a sole trader. There are dozens of potential risks that your business may face on any given day. Instead of buying multiple policies to address each of these liabilities, consider a Business Insurance package.

Business Insurance for sole traders is an insurance package designed to provide cover for your business contents, stock, tools and commercial premises when an insured event occurs (such as fire, storm, theft or even accidental damage).

Your Business Insurance package can be customised to include coverage that fits your needs as a sole trader. This might mean covering your portable equipment, business interruptions, tax audits or other parts of your business.

Personal Accident & Illness

As a sole trader, the fate of your business rests solely on your shoulders. Could you still work if you were seriously injured or fell ill? You may want a safety net to catch you if an accident or illness leaves you unable to work.

Personal Accident and Illness insurance can provide cover if you become permanently disabled or pass away because of an accident. Cover can also include a weekly benefit for loss of income if you are unable to work due to an unexpected injury or illness (even if it occurs outside of your employment).