Sole Trader Insurance
Sole Traders Insurance using a Qualified Insurance Broker
Sole Trader Insurance - Your Guide to Insurance
Sole trader insurance is essential for protecting both your business and personal assets from the legal and financial risks that come with running a business. As a sole trader, there is no legal separation between you and your business, which means the right insurance cover is critical to safeguarding your income, reputation, and livelihood.
This guide to sole trader insurance explains the key risks sole traders face and the types of insurance cover that can help protect you if something goes wrong. Understanding these risks allows you to make informed decisions about the insurance policies you need to operate with confidence.
Whether you work on client sites, provide professional advice, use a vehicle for business, or rely on your ability to work for income, having appropriate sole trader insurance helps minimise disruption and financial loss.
Types of Insurance Sole Traders Should Consider
Public liability insurance for sole traders provides cover for claims arising from third-party personal injury or property damage caused in the course of your business activities.
Workers compensation insurance for sole traders is required in some situations when employing workers or contractors, providing cover for work-related injuries and illnesses.
Commercial Motor vehicle insurance provides cover for vehicles used in a sole trader business, helping protect against accidents, damage, and liability while driving for work.
Personal accident insurance for sole traders provides financial support if you’re injured and unable to work due to an accident.
What Does Public Liability Insurance Cover?
Public & Products Liability Insurance will protect sole traders from the legal costs that arise in the event that something goes wrong. Accidents happen, and your Public Liability policy will protect you from injury or property claims that you're liable for.
What's standardly excluded under a Public Liability Policy?
Events that occur outside of your policy dates
Product recall costs
Injuries to your employees
Asbestos and Pollution Liability
Damages caused by your motor vehicles
Intentional and deliberate acts
Professional Advice and Recommendations
Claims where you have assumed Liability
Public Liability Insurance FAQ's
Public Liability Insurance cost for a sole trader could be between $600 – $1,500 a year depending on your occupation, your limit of public liability you choose, and your turnover.
A sole trader can get public liability insurance as long as they have a registered and active ABN.
The best insurance for a sole trader is a public liability insurance policy that will cover their activities with no restrictive conditions. With Morgan Insurance Brokers working with you, we can secure a policy that will protect your business without breaking the bank.
Public Liability insurance will cover a sole trader and their employees for third party injury and property damage in which they are liable for.
Personal Accident & Illness Insurance
A Personal Accident and Illness policy can pay you a lump sum benefit for injuries that you sustain, along with a weekly sum for a period until you’re able to return to work.
What's typically excluded under a Personal Accident And Illness Policy?
Pre existing injuries
Injuries that occurred before your policy start date
Injuries that occurred whilst paying professional sports
Individuals over 75
Benefit periods longer than 2 years
Criminal Acts/Alcohol/Drugs
Mental illness
Suicide
Workers Compensation Insurance
Do I need Workers Compensation Insurance if I am a Sole Trader?
Workers Compensation Insurance is a compulsory insurance that is goverened by each state and territory in Australia. This will compensation for wages and medical expenses in the event your employees were injured at work.
Even though you are a sole trader, if you hire any employees, or have any subcontractors that fall within the definition of a “worker”, you will need to ensure you have workers compensation Insurance.
Find out more about your relevant state Workers Compensation Insurance Requirements
Queensland: Queensland WorkSafe Workers Compensation Website;Â
New South Wales: NSW iCare Workers Compensation Website;Â
South Australia: Return To Work South Australia Workers Compensation Website;Â
Western Australia:Western Australia Work Cover Workers Compensation Website;Â
Victoria: Victoria Work Safe Workers Compensation Website;Â
Tasmania: Tasmanian Work Safe Workers Compensation Website;Â
Northern Territory: Northern Territory Work Safe Workers Compensation Website;Â
Australian Capital Territory: Australian Capital Territory Work Safe Workers Compensation Website;Â
Tool Insurance
Replacing all of your tools at once because of a theft or fire is extremely expensive. Fortunately, tool insurance is a cheap solution.
What's Covered
Accidental Damage
Collision whilst in transit
Theft
Fire, Flood, Storm
What's Excluded
Theft In Open Air (unless requested)
Electronic Breakdown
Items over $2,500 (unless specified)
Theft without forcible entry
Sole Trader Insurance with Morgan Insurance Brokers
Morgan Insurance Brokers are specialists in protecting sole traders nationwide and will provide a professional service.
We provide peace of mind that your business will succeed when engaging Morgan Insurance Brokers as your preferred business insurance broker.
Frequently Asked Questions
A sole trader is an individual that runs a business and is responsible for all aspects of the business, including debts and losses.​​
You can read more on the Australian Governments website.
Australian Government Information About Becoming a Sole Trader
Sole trader structures are very easy to set up, with minimal costs involved. Standardly, you’d only need to register an Australian Business Number with the Australian Tax Office, and this then will enable you to trade.
As the individual responsible for the business and it’s operations, you are personally liable for anything that goes wrong. This means your personal assets such as your car or home are exposed.
If you employ staff, you are required by law to hold Workers Compensation insurance. Workers compensation insurance covers:
- Out of pocket medical expenses
- Lost wages
- Rehabilitation costs
Other insurance policies are not legally mandatory, but are recommended.
Morgan Insurance Brokers has the facilities to offer sole traders the option to pay their insurance premiums over 12 flexible monthly instalments.
Fortunately, the benefit of obtaining Public Liability Insurance through a broker means that your dedicated Broker will approach a large panel of approved insurers on your behalf. Your Broker will be able to source you the cheapest, most comprehensive policies available.
- Same day Certificate of Currency
- Cheap premiums
- High levels of cover
- Flexible excess options
- Flexible payment options
- No admin charges to make changes to your policies
It will protect sole traders from the legal costs that arise in the even that something goes wrong. Accidents happen, and your Public Liability policy will protect you from injury or property claims that you’re liable for.
If you are changing to a Pty Ltd company structure, your insurances will need to be updated to reflect your correct entity and affiliated ABN.
The rate is calculated by your occupation, wages, and claims history.
At the end of the policy period, you will declare how much you actually paid in wages, and then either pay an additional top up, or are refunded if you’ve over projected.
Broadform Liability Insurance and General Liability Insurance are terms that people use to refer to Public & Products Liability insurance. Broadform Liability Insurance will property damage, personal injury and Products Liability. It is common to have products liability insurance automatically covered, however, it’s wise to check your policy details to confirm.
Public Liability Insurance is designed to protect third parties from loss, damage, or injuries as a result of your work and services. If the work that you’ve done for your client was defective, (say for example, incorrect conrete pour) then the costs that you incur to redo the work will not be covered by insurance.
The limit of Public Liability that you should insure for is dependent on who your clients are.
There is the option to insure for $5M, $10M and $20M.
The waiting period on your Personal Accident and Illness cover ranges from 7 days, 14, 21, or 28 days.
Claims for COVID19 may attract longer wait times.
Tools less than $2,500 are automatically covered.
