Working as a sole trader has some great benefits, with one of the major drawcards being the simplicity of this structure.
Whilst running your business as a sole trader does have its advantages, there are some additional risks that need to be considered.
As a sole trader, you and your business are considered to be a single entity. This means that if your business is sued, your personal assets can also be on the chopping block.
Rather than potentially risking your family home and facing bankruptcy, a better idea is protect yourself with public liability insurance.
Insurance for Sole Traders
There are various forms of insurance that sole traders will either need or should at least consider.
One the most common forms of sole trader business insurance is public liability cover. This form of insurance protects business in the event of property damage or personal injury being caused to others.
Other forms of insurance for sole traders include property, glass, theft, business interruption, and for some business types professional indemnity insurance.
Here at Public Liability Insurance Australia we can help you with quotes on public liability along with a number of other forms of sole trader business insurance.
Public Liability Cost
The public liability insurance cost for a sole trader will depend on a range of factors. Two of the main factors will include the type of work you do and the size of your annual turnover.
Generally speaking, the higher risk your work is and the higher your turnover is, the more you will pay for your insurance.
Most insurance brokers and advisers will be able to assist you with a quote on your public liability and other forms of cover.
You will need to provide the broker with a range of information including your business type, your annual turnover and any information about special location you may work in such as airports, mine sites and other high risk locations.
Advice for Sole Traders
Getting your insurance right is absolutely vital for sole traders in Australia, especially considering your personal assets are on the line if things go wrong.
The best option for most sole traders is to use an insurance broker or adviser who specialises in business insurance.
A business insurance broker will be able to assess your needs and make recommendations on exactly what forms of cover you need. This may include public liability and other forms of business cover.
Your broker will not only be able to tell you what cover you need and how much you need, but they will also be able to tell you which policies will provide the most competitive premiums and value for money.
If you do not already have an insurance adviser, you can request a quote through our website and we will put in contact with an insurance broker or adviser who can assist with your business insurance needs.