Running a business isn’t easy, but when you’re doing it all on your own, the job can feel even bigger. And amongst the many tasks you have on your plate on any given day, trying to work out the insurance for your business can be tricky. Having the appropriate insurance in place to protect your business is, however, an important part of safeguarding your livelihood, especially if you’re a sole trader. So what are the options available to you, and how do you work out which cover you might suit you? Keep reading to find out…

According to the Australian Taxation Office, you’re considered a sole trader if you are the only owner of your business, and are legally responsible for all aspects of the business, including debts and losses. While you can employ people in your business, typically you are not considered an employee.

There are several options available to you as a sole trader, and it’s important to take the time to understand what each one is intended to cover, and review against your business’s needs when deciding which cover(s) you take out. The insurances you’re likely to need will depend on factors such as the type of business, your industry/profession; whether you have a shopfront; how you provide your service and the products you sell. Here are some of the options you have available to you:

Public Liability Insurance

Public Liability (PL) Insurance is designed to cover your business if a member of the public holds you liable for a personal injury suffered by them, or damage to their property. It can help to cover the cost of defending you, as well as compensation you might be required to pay as a result of the claim. It is one of the most commonly purchased types of insurance. If any of these apply to you, then PL insurance may be a cover you should consider:

• You operate out of a physical office premise where clients and other members of the public can visit you
• You don’t have a physical office (for example, you run a service-business from home), but meet clients in their homes, or out in public (such as cafes).

Product Liability

Product liability is for businesses that sell, supply or manufacture products. It helps provide cover in the event a client alleges that products from your business caused them injury or damaged their property. This cover is often included as part of a Public Liability policy. If your business sells, supplies or manufactures products, whether that’s online, or at a physical store, then Product Liability is a cover worth considering.

Professional Indemnity Insurance

Professional Indemnity Insurance (PI) is intended to cover professionals providing professional advice or service. It is designed to help cover your business if a client alleges your service or advice caused them financial loss. For some professions, such as allied health practitioners, accountants and real estate agents it can be a mandatory cover to hold (in some states). However, even if PI is not a regulatory requirement for your industry, if your occupation involves providing a professional service or advice, it is an important cover to consider.