What insurance do I need as a sole trader or small business owner?

  • May 24th, 2024 at 10:10 am

This article was originally published on insurance.com.au.

Are you a small business owner or sole trader? Not sure what type of insurance policy you require? Rest assured; you’ve come to the right place! The Small Business Association of Australia has partnered with insurance.com.au to provide you with insurance solutions.

As a small business owner, or a sole trader, not only are you in charge of your business activities, but you also bear the brunt of all your business risks.

This blog will outline products available through insurance.com.au, for small business owners and sole traders; and the role that each may play in your business.

Professional Indemnity Insurance

Professional Indemnity is a type of liability insurance that serves as a safety net, to safeguard your business from financial implications of errors, omissions, or neglect in your professional services. This type of insurance steps in when a client alleges that the services or advice provided by the business or professional resulted in financial loss, damage, or other adverse consequences. Professional Indemnity Insurance covers legal costs and compensation payments, helping the business navigate through the complexities of professional disputes.

Picture a scenario where you are conducting your professional services, and a third party alleges wrongdoing, a mistake, or breaches of professional duty on your behalf. Without Professional Indemnity Insurance to protect you, your business could face financial damage, damage to your business reputation or even legal battles.

For more information on insurance.com.au Professional Indemnity Insurance, click here.

Civil Liability Insurance – Combined Professional Indemnity, Public Liability and Products Liability Insurance.

insurance.com.au understands the unique nature of Healthcare Professionals. Working closely with healthcare partners and insurance underwriters, insurance.com.au provides a policy that meets the broad needs of Healthcare Professionals.

The Healthcare Professionals Civil Liability Insurance Policy is unique, providing cover for Professional Indemnity, Public Liability and Products Liability Insurance. Many professionals in this field are regulated by the Australian Health Practitioner Regulation Agency (AHPRA), in which this insurance policy is compliant.

You now know what Professional Indemnity cover is, however, this policy also combines Public Liability, and Product Liability, so let’s go into some more detail on these two coverages.

Public Liability Insurance covers your business in the event one of your clients or a member of the public claims they were injured, or their property was damaged because of your business operations.

Product Liability Insurance protects you against claims made against you (within Australia) for any products sold of supplied by you to a third party if your products caused personal injury or property damage. Cover may include compensation payable to a third party and/or reasonable legal defense or investigation costs relating to the claim.

For more information on insurance.com.au combined Professional Indemnity, Public Liability and Products Liability Insurance, click here.

Business Insurance Package which includes Building and Contents, Portable Contents & Tools, Public Liability (Excluding Professional Indemnity) as well as additional optional coverages.

The insurance.com.au Business Package has been designed to simplify your insurance requirements, through the ability to combine multiple covers under one easy to manage policy. The Business Package includes the below covers, all of which can be combined under one policy, depending on your business requirements:

Building & Contents Insurance provides cover for your commercial property, contents, and stock. This does not include glass, theft, or money coverage. You will need to select additional cover to include this in your Business Package (see below).

Public Liability – please note, Public Liability under the insurance.com.au Business Insurance Package does not include Professional Indemnity Insurance. To purchase Professional Indemnity Insurance, you will need to select this first in the quote journey, allowing you to add Public Liability to the cover.

Portable Contents / Tools Cover Covers your Portable Contents and Tools, for example laptops, in case of theft or accidental damage.

In addition to the above, you can select the below optional coverage types. Please note, to purchase the below cover/s, you must purchase one or more of the above covers.  

Business Interruption covers business lost income, profits, or turnover because of interruption caused to your business due to unforeseen events. For example, a fire that has caused your business to close for a period of time.

Theft, Money & Glass is a most common add on to Building and Contents Insurance. This may cover loss or damage to contents caused by theft, or attempted theft; loss of money’ and/or damage to glass at your business location.

Equipment Breakdown covers you for breakdown to business machinery or items of electronic equipment that occurs at the location.

For more information on the insurance.com.au Business Package, please click here.

In essence, investing in insurance as a sole trader or small business owner isn’t just to fulfil a requirement. It is to ensure your business is safeguarded for the future, and you are protected. Therefore, the importance of having comprehensive cover is essential.

If you are unsure of what insurance is suitable for your business, insurance.com.au can support you! Contact 1300 468 730 or at support@insurance.com.au

**For all policy coverage and conditions, please refer to the Product Disclosure Statement and general Terms & Conditions. The information provided in this document is general advice only and does not take into account your individual objectives, financial situation or needs (your ‘personal circumstances’). When making decisions about purchasing, amending or renewing insurance, consider the Product Disclosure Statement or policy wording/booklet. Coverage is always subject to the policy terms and conditions.

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