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Sole trader insurance may offer financial protection against common risks in your daily business operations. Explore your insurance options to help safeguard your business and personal assets, covering essentials from public liability to specialised cover for your business activities.
Sole traders face a unique set of responsibilities and risks in their daily operations. Sole trader business insurance may offer financial protection, helping you manage these risks and safeguard your business activities. If you’re a sole trader in Australia, understanding the types of insurance coverage available may help you make informed decisions to protect your business.
Sole trader insurance may be able to cover your specific business activities, to help ensure you are protected you from the risks you face. Unlike larger businesses, sole traders may be personally liable for any financial or legal claims made against them. Without the protection of a corporate entity, these claims can directly impact your personal and family assets. Sole trader insurance packages often include public liability insurance, business pack insurance, personal accident insurance, cyber insurance, and, depending on your work, other specialised covers tailored to your business activities, such as professional indemnity insurance.
As a sole trader, you could be held liable for incidents like property damage, personal injury to others, or financial loss to a third party. A client could slip on your premises, or an error in your service might lead to financial loss for a customer. Without adequate insurance, the financial consequences of such events may fall on you personally. Having insurance may help cover legal fees, compensation costs, and other expenses, offering you peace of mind to focus on growing your business.
Public Liability Insurance*Public liability insurance for sole traders can provide cover for claims against:
Public liability insurance may protect sole traders against claims from third parties for injuries or property damage resulting from your business operations. This is especially important if you frequently interact with clients, suppliers, or the general public in your line of work. For example, if a client slips in your workspace, public liability insurance may cover compensation costs, helping to protect your business and personal assets.
Business pack insurance offers a comprehensive option for sole traders who require multiple types of cover in one package. This policy may bundle together various types of insurance, such as public liability, commercial property, fire, theft, glass, and business interruption, depending on your needs. This type of cover may be beneficial for sole traders who operate from a shop or commercial premises and wish to protect multiple aspects of their business operations under a single policy, offering both convenience and flexibility.
As a sole trader, your income often depends on your ability to work. Personal accident and sickness insurance may provide financial support if you cannot work for an extended period due to an illness or injury. This cover may replace a portion of your income during recovery, helping you manage expenses even if you’re unable to work temporarily. This cover can provide up to 85%* of your weekly income for 52 or 104 weeks at the time of the injury.
Many sole traders rely heavily on their commercial vehicle, tools or equipment to get to jobs and to carry out their work. Commercial vehicle insurance can provide protection against vehicle accidents while tools and equipment insurance may cover the repair or replacement of essential items if they are lost, damaged, or stolen. These covers may be valuable for tradespeople, photographers, and any other sole trader who relies on the commercial vehicle and specialised tools to operate.
If you are a sole trader that provides professional advice or services, professional indemnity insurance may help cover claims related to professional negligence, mistakes, or omissions that lead to financial losses for a client. Examples of sole traders that should strongly consider professional indemnity insurance are marketing consultants, management consultants, accountants and business advisors, architects and freelancers.
Cyber insurance may offer valuable protection for sole traders who handle customer data or accept electronic payments, such as online and traditional retailers or professional service providers. This type of insurance may assist sole traders in managing financial impacts from data breaches or cyberattacks.
A cyber insurance policy may cover a range of costs, including:
As with all insurance, it’s important to review the Product Disclosure Statement (PDS) or consult with a business insurance broker to understand the specific inclusions and exclusions of your policy.
The cost of insurance for sole traders can vary depending on factors such as the industry you operate in, your business activities, and the level of cover you choose. Higher-risk occupations, like trades, may attract higher premiums due to the increased risk of accidents and claims. Getting a tailored quote from our team of insurance brokers could help you find a policy suited to your specific needs and budget.
Public liability insurance cost snapshot for sole traders is below:
self-employed office based sole traders,
eg. consultants and contractors
$5 million public liability insurance costs start from $480 annually or $40 per month for some office based self-employed consultants
$5 million Public Liability Insurance costs for some lower risk self-employed tradies, such as some domestic painters, gardeners and domestic cleaners starts from around $550* or $50 per month.
* Important: the above is a guide only ; pricing may vary significantly from the above based on your size, clients, experience and self-employed business activities.
A business insurance broker specialising in sole trader coverage may assist you in comparing policies and finding an insurance package that covers your business activities. Our brokers may be able to help you navigate your coverage options, answer your questions, and adjust your insurance as your business grows or changes. At Public Liability Australia, our brokers are here to help guide you in sourcing insurance coverage that may provide valuable protection for your sole trading business.
To protect yourself and your business, consider speaking with one of our insurance brokers about sole trader insurance options.
All sole traders typically will need at least need Public Liability Insurance.
Sole traders typically need public liability insurance coverage when signing a lease or gaining access to a site. Clients and landlords often require sole traders to carry public liability insurance.
Public liability insurance for sole traders can provide cover for claims against:
Public liability insurance may protect you against claims of injury or property damage that occur as a result of your business activities. As a sole trader, you are personally liable for these claims, which means that any damages or compensation could come directly from your own assets. Public liability insurance may provide valuable protection for sole traders who interact with clients or the public.
While public liability insurance covers claims of injury or damage to third parties, professional indemnity insurance is specifically designed for sole traders who provide advice or services, such as marketing consultants, management consultants, accountants and business advisors, architects and freelancers.
Professional indemnity insurance may be important for sole traders who provide advice or specialised services, as it could help protect against claims arising from professional errors, omissions, or allegations of negligence.
It may cover claims of negligence, mistakes, or omissions in the services or advice you provide, helping to cover legal fees and compensation if a client experiences a financial loss as a result of your work.
In Australia, there is generally no legal requirement for sole traders to hold public liability or professional indemnity insurance unless specified by industry regulations or client contracts. However, insurance is recommended, as clients and landlords often require sole traders to carry public liability insurance.
Also, appropriate business insurance for a sole trader may provide financial protection against unexpected events that could otherwise impact your business and personal assets. It’s wise to consult with one of our insurance brokers to determine what covers offer protection against your business risks.
The cost of insurance for sole traders may depend on several factors, including the nature of your business activities, the level of risk involved, and the types and number of coverage options you choose. For instance, sole traders in high-risk industries such as construction may face higher premiums than those in low-risk professions.
Yes, insurance policies can often be adjusted as your business grows or if your activities change. It’s advisable to review your coverage annually or whenever you make significant changes to your business. If you purchase new assets or your turnover or number of employees increase significantly you should update your cover immediately. Working with our insurance broker may help you easily update your policy to ensure you remain adequately protected.
Tools and equipment cover is typically available as an optional cover. This coverage may protect your essential tools from theft, damage, or loss, helping to cover repair or replacement costs. If your work depends on specialised equipment, this coverage may be beneficial in ensuring minimal disruption to your business.
To make a claim, contact one of our insurance brokers as soon as possible. They will guide you through the claims process, which typically involves providing details of the incident and any supporting documentation, such as receipts or photos. One of our brokers may be able to assist you with liaising with the insurer to support you throughout the claims process.
List of states and territories in Australia we can help the self-employed find the insurance cover they need :
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What that means is that we are YOUR representative, and our first responsibility is to YOU, unlike an insurance agent who represents the insurance company.
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Important : We have no power to authorise claims. However, our experience and assistance can help you when you have a claim.
*Important: Insurance protection may be available only subject to meeting insurers underwriting criteria. Some of the insurance protections listed may not be available or may have limitations or exclusions. Insurance protection cover inclusions vary significantly from insurer to insurer. DO NOT rely upon the above. Please check your policy schedule carefully for inclusions , exclusions and limitations. Talk to a business insurance broker on 1300 670 250 for more information.
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The information in this website is for informational purposes only and is in no way to be considered personal, financial or legal advice.
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