According to the Australian Bureau of Statistics, non-employing businesses accounted for 62.8% of all businesses in the 2018-2019 financial year. It means that there is a large number of sole traders in Australia, who need to consider a variety of insurances to protect their businesses to ensure a stable relationship with their clients and a peace of mind for themselves.
If you are a sole trader, you may wonder what particular trader’s insurance type you can benefit from. We put together a handy guide for you that will help you choose the right cover for your business.
Sole trader insurance requirements
In certain instances, insurance is essential for sole traders due to the requirements of their clients. In others, self-employed choose to get a cover for their business because they are aware of potential risks they can encounter in a workplace.
There are many types of trader’s insurance available:
- Professional Indemnity Insurance
- Public Liability Insurance
- Personal Accident and Illness Insurance
- Property and Tools Cover
- Workers Compensation Insurance
- Mining Contractors Insurance
Depending on your circumstances and in which trade you are involved, you may need to consider other types of cover. Professional brokers can help you make the right choice and direct you towards the right trader’s insurance.
In many cases, freelancers and professionals are required to have insurance due to the terms in their contracts with companies and clients. Two of the primary insurances that contractors are advised by the majority of corporates and local authorities to obtain are Professional Indemnity and Public Liability Insurance. Keep in mind, that smaller businesses and individuals can also request it in cases where they share personal data, intellectual property or any other sensitive information with a contractor.
It is a good idea to research what types of covers are commonly required in your field of work, as well as which insurance any client expects you to have prior commencing your assignment. S we mentioned before, there are different types of cover and also different levels of insurance you may need to get. At All Trades Cover, our knowledgeable brokers can help you to find the right type and level of trader’s insurance for your business.
Things to consider when choosing a trader’s insurance
There is an incredible number of policies out there that can overwhelm you when choosing the right insurance for yourself. There are a few main things you need to consider as a contractor when choosing what cover you need to get. If you consider the worst-case scenario, you can secure yourself with a peace of mind knowing that in an unlikely situation of it happening your assets will still be protected. As a sole trader, you may need to keep some or all of your tools and any other business property at home. In this case, you need to find out if your home insurance covers the property that you use for work, as in most instances, home content covers don’t include business property or commercial activity. Also, consider your potential liability in case of an incident, the larger your contract, the higher will be your liability.
To find out more you can speak to one of All Trades Cover insurance brokers on 1300 826 850 or simply request a quote online.