Explore Business Insurance

When you’re a self-employed sole trader it’s up to you to ensure your business succeeds. While it’s a tremendous opportunity, as any big wins are yours to enjoy, many things can go wrong.

Whether you’re a tradesman, financial advisor, freelance creative or in another role entirely, business insurance can help protect you from financial ruin.

We explain more below about these products.

What business insurance can be relevant to a sole trader?

Business insurance can cover the cost of a variety of unfortunate events which could otherwise cause severe financial stress. From accidents and injuries to theft and legal action, there are various policies available to protect against a variety of risks. Sometimes these products may be mandatory.

Consider the below list of insurance policies that can be relevant to sole traders to see which ones may apply to you.

Public liability insurance*

Public liability insurance can come in handy whether you’re out and about or working on your own in a workshop or office. Public Liability insurance is helps protect you and your business in the event a customer, supplier or a member of the public brings a claim against you if they get injured or have their property damaged as a result of negligent business activities.

Professional indemnity*

a woman with her co-workers during a business meeting

If you’re a sole trader providing advice and services to clients. such as an accountant or consultant, then you may wish to consider a professional indemnity insurance policy.

Imagine you provided some bad advice, overlooked something or otherwise failed to meet your duty of care. Professional Indemnity (PI) is designed for businesses that offer specialist services or give professional advice.  It covers claims against you for losses as a result of actual or alleged negligent acts or omissions when you provided a professional service or advice. Professional Indemnity insurance also helps out with legal costs associated with responding to or managing claims covered by the policy.

Protection for your business assets

There are also a number of business insurance package policies* designed to cover your physical assets and these can often include public liability cover. A few examples include:

  • Building. If you own the building which your business operates from, building insurance will provide cover for loss and damage to your building caused by events listed in the policy, from natural disasters like fires, floods or storms to accidental damage. Note that to cover windows and glass surfaces in the building, you’ll typically need to purchase additional cover.
  • Contents: Covers your business contents or stock if they’re damaged by fire, storm, malicious damage or another defined event listed in your insurance.
  • Theft and vandalism. This covers your business for the cost of replacing stolen goods and any damage caused by burglary, attempted burglary and vandalism.
  • Portable Equipment insurance (also known as General Property insurance) covers you for loss and damage to portable business equipment. Examples include tools and stock items.
  • Machinery Breakdown insurance: Covers the cost of repair or replacement for nominated machines used by your business, such as refrigerators and air conditioners.

Discover more about business insurance

What else can be covered by business insurance? Check out our list of different types of business insurance to find out more.

Work from home? Learn more about business insurance for home-based businesses.

Looking for information about your industry? Our handy list of industry guides may be useful.

Frequently asked questions

How much cover do I need?

The level of cover you need as a self-employed sole trader will depend on a number of factors, such as:

  • The size of the business
  • Annual revenue
  • Which industry you operate in
  • What insurances you choose
  • Past claims history

To get an idea of what your premiums could cost, complete a quote for business insurance with us. It only takes a few minutes, you’ll see the kind of value such a policy could provide, and it doesn’t cost you a cent.

Do I need cyber liability insurance*?

Cyber liability insurance is handy if you collect and store client information on a digital system, such as customer emails for digital marketing, or personal customer details such as names and addresses. Cyber Liability insurance helps to protect you from claims and supports your profitability in the event of a cyber breach or attack.

Do I need workers compensation as a sole trader?

Are you a registered sole trader with employees working for you? If so, you’ll need to provide workers compensation.* However if you do not have any employees as a sole trader you aren’t eligible to take our workers compensation.

This brings up a serious question, how would you or your family get by if you’re injured and forced to take time off work to recover?

You may wish to consider an income protection policy instead, which will pay a cash benefit to you if you’re unable to work due to serious illness or injury.

Compare your options in minutes

If you’re a sole trader who needs insurance, we can help you save time finding cover. You can get a quote from a range of business insurance providers in minutes using our free comparison service.

Need help or want more information? You can also call our friendly experts for assistance.

*As with any insurance, cover is subject to the terms, conditions and exclusions contained in the Policy Disclosure Statement (PDS). The information on this web page is general in nature and shouldn’t be treated upon as business advice.

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