How Much Does Insurance Cost for a Sole Trader?

As a sole trader, your business and personal assets are mixed together. This makes conducting business both easy and difficult. When accidents happen, it is not just your business that takes a hit, you do as well. When building a business as a sole trader, insurance is key to ensuring long-term financial security, but the cost can vary depending on different factors.

These are things specific to your business, like the type of insurance needed, level of business risk, and any previous insurance claims.

We know that starting a business is tough, especially during a cost of living crisis, but that’s why we are here to help you choose the right insurance policies for you. Morgan Insurance Brokers are dedicated to building the perfect insurance policies for your business while keeping costs low.

Insurance for Sole Traders

Deciding what insurance you need as a sole trader can be a difficult task. It largely depends on what industry you are going into, though there are standard insurance policies that are recommended no matter the industry. These are:

Other industry-specific insurance policies to consider should be:

No matter what you go with, insurance is important for sole traders. It protects them from unexpected risks and liabilities while providing financial security and peace of mind.

Factors Affecting Insurance Costs

Asking how much your insurance will cost is like asking a fortune teller to predict the weather; it’s an incredibly complex question with no right answer. Without discussing the ins and outs of your business and providing you a quote, most insurance brokers will be hard pressed to give you any kind of straight answer. However, there are several factors that insurance companies take into account which can affect the cost of your insurance:

Industry and occupation

Generally speaking, industries like construction, healthcare, and IT tend towards having higher premiums. This is because they are considered high-risk, either because of the increased risk of injury or illness or the risk in data security.

Business size and revenue

You may be asked to declare your annual revenue when getting insurance for your business. The bigger your business, the higher your premiums may be. This could be because of a higher chance of liability claims from clients.

Location

Quite often, insurers will take into account location-based risks when looking into your insurance premiums. Things like crime rates, high risk of natural disasters such as bushfires or floods, the amount of claims made from other business properties in that area, and also if you have dealings in multiple states all affect your premiums.

Level of Coverage

If you want more insurance coverage for your business, this can also have an impact on the costs. Generally, having higher limits on liability equates to higher premiums. For example, someone who has a $30,000 liability limit on their insurance will pay a much lower amount than someone who has a $50,000 liability limit, not counting any other outside factors.

Claims history

Your premiums can increase if you had an insurance policy that you previously made a claim from. Claims affect future premiums regardless of the insurance company you were with previously. It is a legal obligation to disclose any previous incidents that influence the insurers decision to accept their risk.

Choice of insurance provider

All insurers have different price ranges, that is a simple fact, so whichever insurance package you choose will be priced differently for all businesses based on the information above. This is why it is essential to get quotes from multiple providers to make sure you are getting the best insurance package possible for your business.

Insure with Morgan Insurance Brokers

Working with an insurance broker means that you are getting specialist advice that goes far beyond what an insurance company would offer. They compare different insurance companies to tailor-make policies and so are getting the best and most cost-effective coverage possible for your business.

When you work with us at Morgan Insurance Brokers, we do all of the above and more. With more than 150 insurers working with us, we can craft the perfect insurance coverage at the lowest cost to your business.

Don’t let risk run your business, contact us for a free quote today and protect your future.

by jasper

Top Ways to Insure Your Sole Trader Business

We know starting your own business is tough, especially when there are so many different insurance options available and you have no idea where to start. For sole traders, it can seem daunting because not only do they need to protect their business but also themselves.

Getting insurance for your business, no matter how small, is always recommended. Insurance covers you in the case of unexpected financial loss which happens alarmingly often. Depending on the industry you have chosen, there are different compulsory insurance requirements. Otherwise most insurance options are optional but highly recommended.

When you look for insurance with Morgan Insurance Brokers, we make sure you and your business are well protected and have all the insurance coverage you need.

Why Sole Traders Need Insurance

As the simplest business structure for someone wanting to get their venture off the ground, sole traders make up a large portion of Australian businesses. According to the Australian Bureau of Statistics, about 61% of businesses in Australia are sole traderships.

While being a sole trader business can make things a lot easier, it also means that there is no legal distinction between you and your business. You are fully responsible for all aspects of the business, good and bad.

Insurance is incredibly important for you as a sole trader. Without it, you are fully liable for anything that happens in your business. Workers compensation is not valid for sole traders, so there are a range of insurance options recommended depending on the chosen industry.

There are a number of insurance policies sole traders need to know about at the beginning of their business venture:

Professional Indemnity Insurance

Professional indemnity insurance is an important and sometimes essential insurance policy to have for the smooth running of your business. This policy aims to financially protect you, your workers, and your business from any legal claims or allegations about any unsatisfactory advice or services given. This could be from unintentional errors leading to a clients financial loss, misunderstandings about what a product or service can provide or advice given, and any copyright claims.

The policy can cover legal costs, compensation for damages, and other losses incurred when defending your business in court; this could be against alleged or actual claims of negligence or professional breach of duty.

Business Insurance

This kind of insurance is arguably one of the most important for sole traders or small businesses. It can cover the business against significant financial loss, fires, theft, equipment breakdown, employee dishonesty, natural disasters, and accidents.

No two businesses are the same, just like no two business insurance policies! Having a policy tailored to your small business is essential to protect yourself from any unknown accidents that may set your business back financially.

Public Liability Insurance

When you have this insurance policy, it protects your business against claims relating to personal injury, property damage, and advertising liability brought against you by third parties.

For example, you have a shop full of shelving for a range of different boardgames and one of those boardgames falls on the head of a customer and they get a concussion. Any claims of personal injury against your business because of your negligence could be covered by your business insurance policy.

Personal Accident and Illness Insurance

When you have personal accident and illness insurance, the policy offers you financial assistance when an individual has an accident that results in injury, disability, or death.

If you fall ill or get into an accident while working and do not have insurance coverage, this can severely impact your business and potentially cause major financial setbacks, especially if you have no employees to cover your absence.

Income Protection Insurance

For a sole trader who relies on their business as their main source of income, this insurance policy is crucial. It is basically a safety net, providing an income source in times of need or health-related absence from work.

It is designed to cover a significant portion of your main income, replacing up to 70% of your gross income, so sole traders can meet their financial obligations. It is possibly the most important insurance policy for sole traders, self-employed professionals, and contractors.

Protect Your Business With Morgan Insurance Brokers

When you protect your business with Morgan Insurance Brokers, we do extensive research into your business. In doing this, we make sure you are getting the best insurance policies you need to conduct your business safely.

Our team specialises in insurance policies for small to medium businesses, and we take pride in building trust in our client relationships.

Are you looking for an insurance broker committed to safeguarding your business? Look no further. Contact us now for a free quote and start your journey with us today.

by jasper

Personal Accident Insurance Explained: Get Peace of Mind as a Sole Trader

Workplace injuries can happen to anyone at any time, which is why it is important to insure your business for any unexpected incidents. That is why Morgan Insurance Brokers offer Personal Accident Insurance for our clients. 

What is Personal Accident Insurance?

The insurance policy is designed to help relieve financial stress if you or your employees suffer a work-related accident that results in serious injury, disability, or death. Depending on the policy, this can also extend to illness cover as well, aimed at financially assisting in short or long-term recovery. 

Many Australians have felt the impact cost of living has had on their lives, but as business owners, sole traders, or contractors, this leaves you significantly more vulnerable to financial stress if you are unable to work. 

What are the Risks for Sole Traders?

We’re all human, we all get sick or injured every once in a while. But for sole traders and small businesses, which can have a massive impact on their income. Whether for yourselves or for your employees, there is always a risk of;

  • Illness

Illness can seriously halt business. Whether it’s something as simple as a common cold or something much more serious like a stroke or sudden onset diabetes, being insured for any unexpected illnesses can save a significant amount of money and reduce stress for sole traders. 

  • Injury

Just like an illness, an injury can really affect the flow of business regardless of whether it is the business owner or an employee. Injuries could come from a number of unexpected accidents, like a busted ankle doing a fun run for a company-sponsored sports event, or even a broken wrist from an employee slipping on a wet floor. 

  • Disability or Death

In the few instances where a workplace injury or illness results in permanent disability or death, some insurance policies offer lump sum payments or capital benefits as a form of compensation. 

How does Personal Accident Insurance Benefit Sole Traders?

This kind of insurance policy acts as a safety net of sorts. It protects sole traders from any unexpected incidents or circumstances. Below outlines the key benefits of insuring yourself against injury or illness.

Income Protection

If you are unable to work due to injury or illness, insurance can provide regular income replacement in some cases. Insuring yourself with this insurance policy helps mitigate the financial blow that comes with these events and lessens the stress and worry that can come with potentially losing your main source of income without having to dip into savings. The policy is generally limited to a maximum 2 years worth of payments.

Medical Expenses

If your injury happens to need ongoing maintenance, or your injury requires surgery, having this insurance cover can be a real life saver. The policy can cover a wide range of medical costs, including hospital fees, surgery costs, medication, and rehabilitation or therapy. The continued support is designed to assist you getting back to work without breaking the bank and jeopardising your own financial situation.

Death and Disability Cover

There is nothing more devastating than getting into an accident or sustaining an injury that could potentially take your life or cause long-term disability. This is a large concern for many sole traders who work in construction, risking their lives daily for their work. While nothing can fully compensate a life, this insurance policy helps towards capital benefits aimed at assisting families or beneficiaries. 

Similarly, lump sum payments can be made in the event of a life-changing permanent disability to help cover long-term financial needs. Disability capital benefits are designed to assist in medical treatments, hospital bills, and home modification. 

Is Personal Accident Insurance Right for You?

It is incredibly important to choose the right insurance policy for your business, especially when it comes to accident and illness coverage. There are a lot of things to consider, which is why it is recommended to speak to a broker who can help tailor your policy to your business needs. 

One of the best things about Personal Accident cover is that there are no medical examinations required for eligibility. This makes accessing coverage quick and straightforward, opening the door for many people who are worried about pre-existing conditions or who do not want to undergo a medical exam. Because pre-existing conditions are not covered in this kind of policy, the medical exam is not necessary to gain protection. It is ideal for those who want financial protection from accidents sooner rather than later. 

Personal accident premiums generally tend to be lower compared to other income support policies, like income protection insurance. Personal accident insurance typically only covers injuries and accidents classified as unforeseen events that might not ever happen, whereas income protection insurance protects from a wider spectrum of scenarios. 

What is usually covered in Personal Accident Insurance?

  • Medical expenses
  • Death benefits
  • Weekly payment benefits
  • Hospital expenses
  • Rehabilitation benefits
  • Lump sum disability payments

What is typically not covered in Personal Accident Insurance?

  • Pre-existing conditions
  • Drug or alcohol influence
  • Dangerous sport and activities
  • Exposure to exceptional danger
  • Amateur football
  • Intentional self-injury
  • Criminal acts
  • War and civil commotion
  • AIDS
  • Childbirth
  • Professional sport

How Morgan Insurance Brokers Can Help You with Your Insurance Needs

Insurance is often complicated, but it doesn’t need to be. We here at Morgan Insurance Brokers understand that not all insurance policies are made equal, and it can be difficult trying to decode what a policy does and doesn’t do. 

As an insurance broker, we work for you to tailor-make insurance policies that benefit your business. Personal Accident Insurance comes with a variety of clauses and exclusions that can greatly impact your coverage, which is why we ensure you receive insurance that is specific to your needs. 

When you use Morgan Insurance as your insurance broker, you do so knowing your insurance needs are being handled by professionals. Regardless whether you are a new or established business, our team of Personal Accident Insurance brokers offer comprehensive insurance to all clients. Contact us today for a free consultation and we will work to custom-made the perfect insurance policy for you. 

by Mojo Dojo