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Do I need insurance as a sole trader?
As a sole trader, it is important to protect yourself and your business. This means that you need to have the right sole trader insurance in place.
There are many different types of sole trader insurances available, so it can be difficult to know which ones you need. We discuss the different types of insurance that are essential for sole traders. We will also provide tips on how to find the best rates for sole trader business insurance.
As a sole trader, you are legally responsible for all aspects of your business. This includes any debts and losses that your business incurs. If something goes wrong, it is up to you to cover the costs. This is why sole trader insurance is so important. It can help to protect you financially if something goes wrong in your business.
Find out how much it costs to get covered.
Do I need insurance as a sole trader?
The short answer is yes, as a sole trader you need insurance. The type of sole trader business insurance you need will depend on the nature of your business. For example, if you provide professional services such as counselling or financial advice, you will need to have professional indemnity insurance in place.
Can sole traders get workers compensation?
As a sole trader, you are not eligible for workers’ compensation insurance. This means that you need to find another way to insure yourself in case of an accident or illness. One option is to take out private health insurance. This will cover you for medical expenses and loss of income if you are unable to work. Another option is to take out accident and sickness insurance. This will cover you for loss of income if you are unable to work due to an accident or sickness. You can compare different policies and find the best rates for sole trader business insurance by using an online comparison website.
Public liability insurance for sole traders
Public liability insurance for sole traders can protect you against negligent actions causing injury or death to a third party.
It means if your business is sued as a result of its actions, you will have the resources to respond to any legal actions and the means to pay any damages.
It may still be appropriate to hold public liability insurance if your business currently has no or limited revenue, or if you are working from home. But your exposures are likely to have changed. So it’s an idea to talk to your insurance broker to ensure the cover you hold remains appropriate to your needs.
Through our local knowledge and dedicated broker team, we bring customer service to the forefront. More often than not, this is often overlooked in the insurance space.
NewSure General Manager,
Brett Edmonds
Professional protection
Unfortunately, professionals can sometimes make mistakes. It’s an inevitable part of working in any field. And when those mistakes lead to legal action, the costs can be devastating.
That’s where professional indemnity insurance comes in. It can provide crucial protection for businesses that offer professional services, covering the legal costs and claims for damages that may arise from an act, omission or breach of duty. In other words, it gives you and your business the peace of mind knowing that you’re covered in the event of a claim. Professional indemnity insurance is a must-have for any sole trader that wants to protect itself from the financial ruin that can come from professional negligence.
What insurances does a sole trader need?
As a sole trader, it’s also important to consider taking out either income protection insurance or personal accident insurance. These sole trader insurances can help protect you if you fall ill or have an accident and you are unable to work for a period. It’s also a really good idea to have health insurance.
There is a range of other insurances to consider as a sole trader. If you are a tradesperson, you may wish to take out specialist insurance that covers tradies. You will also need to have the right insurance to cover theft of your tools.
See also: Small business insurance explained
Compare sole trader business insurance quotes Australia
There are a number of different types of sole trader insurance available and it is important to choose the right cover for your business.
NewSure is a specialist sole trader business insurance service provider, helping you compare quotes and buy business insurance.
“Through our local knowledge and dedicated broker team, we bring customer service to the forefront. More often than not, this is often overlooked in the insurance space” said NewSure General Manager, Brett Edmonds says.
With 250+ years of combined experience, we’re trusted by thousands of Australian businesses.
We offer complete insurance solutions for all types of businesses – from start-ups to medium and large size enterprises. Let us help you.
Talk to us or request a callback.
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