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
• Business Insurance
• Public Liability Insurance
• Personal Accident and Illness Insurance
• Income Protection Insurance

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.