42% of all small-to-medium enterprises (SMEs) and micro businesses in Australia are sole traders. However, looking at five year survival trends by business type, sole traders are most likely to fail. With such a large portion of Australian small businesses operating under this high-risk structure it is important to secure adequately protection in order to achieve longevity.
What is Sole Trader Insurance?
Sole Trader Insurance is business cover designed specifically for business owners who hold all the decision making power for their company. There is no division between business assets or personal assets for Sole Traders. This includes the Sole Traders share of any assets jointly owned with another person (such as a house or car). Liability is unlimited in this business structure, which means that personal assets can be used to pay business debts.
Sole Trader Insurance can help your business survive the unexpected, with minimum losses.
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Our systems do the hard work, quickly matching the insurance that best suits your business.
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What are the Specific Risks Faced by Sole Traders?
Sole Traders are one with their company, they become a single legal entity, meaning that they have more to lose if things go pear shaped in their business.
The difference being a typical worker in your industry and being a Sole Trader is that Sole Traders take on much more personal risk. Sole Traders will face a number of risks, unique to their specific industry, on a daily basis. Some examples of risks faced by Sole Traders include:
- A freelance beautician uses a product on a client’s skin that causes a severe allergic reaction, leading to a hospital visit. A comprehensive Sole Trader Insurance policy could cover the medical costs and any resulting legal fees and payments associated.
- A self-employed carpenter is seriously injured on the job and as a result he cannot work for 3 months. His business overheads don’t stop, but his income does. The Business interruption part of a Sole Traders Insurance policy could help him by paying a monthly benefit.
- An electrician rewires part of a house and inadvertently starts a small fire, which causes minor property damage. A comprehensive Sole Traders Insurance policy may cover the cost of the repairs that she was responsible for.
- A freelance Marketing Consultant’s office is destroyed by fire. As a result, the owner has to find temporary accommodation to house the staff while repairs are carried out on the premises. The Business Interruption part of a Business Insurance policy could cover out of pocket expenses.
- A self-employed accountant gives out of date advice to one of his clients and as a result is taken to court. An appropriate Sole Trader Insurance policy may cover his legal fees and any subsequent payment to the client.
What Are the Key Elements of a Sole Trader Insurance Policy?
Depending on your circumstances, and the industry you operate in, an Allied Health Insurance policy may include the following covers:
- Professional Indemnity Insurance: Designed for professionals who provide advice or a service to their customers, Professional Indemnity insurance will protect you against legal costs and claims for damages to third parties that may arise out of an act, omission or breach of professional duty in the course of your business.
- Public Liability Insurance: If your business has even the slightest risk exposure to causing property damage or personal injury to another person, public liability insurance should be considered an absolute must.
- Personal Accident and Sickness: Providing work related health insurance for freelancers, sole traders, self-employed and contractors which can sustain you financially after an accident or health issue, while you are unable to work.
- Commercial Property Insurance: Property insurance provides protection against most risks to business property, such as fire, theft and some weather damage. This includes specialised forms of insurance such as fire insurance, flood insurance, earthquake insurance, or boiler insurance.
- Business Interruption Insurance: Also known as business income insurance, Business Interruption insurance is a type of insurance that covers the loss of income that a business suffers after a disaster. This is particularly vital for Sole Traders given their dependence on the business. The income loss covered may be due to disaster-related closing of the business facility or due to the rebuilding process after a disaster.
Who Needs Allied Health Insurance?
If you are the exclusive owner of your business, meaning that you are entitled to all profits after tax, then you should consider insuring your business with a Sole Trader Insurance policy.
Sole Traders come in all shapes and sizes, across a myriad of industries. Whether you work in trades as a carpenter, plumber, gardener, painter or otherwise; or perhaps you own a retail store or hairdressing or beauty salon, all these and many more industries can benefit from PSC Direct. PSC Direct insurance brokers can source a policy for you that is specific to the unique needs of your business.
Many people enjoy the simple structure of being a sole trader. Owning your own business comes with the advantages of being able to control all business choices, but unlimited liability means all your personal assets are at risk if things go wrong.
While having the power to make business choices on your own may be easy and beneficial to the running of your business, no one wants to be alone when something goes wrong. That’s why PSC Direct Insurance Brokers are an asset to your business. Having a broker on your side when things go wrong can make the process of claiming for your business and getting back on your feet after a disaster much easier and less stressful.
How PSC Direct Works for You
The team at PSC Direct comprises specialist business insurance brokers, experienced in sourcing insurance for Australian SMEs. We care about the clients we service and want to fully protect their businesses. That’s why we treat each and every one as an inividual entity, considering their unique requirements to source the most appropriate cover that will offer the upmost business protection.
PSC Direct Insurance Brokers use online systems to review your business. We draw on our experience with thousands of similar businesses across Australia to match your needs to our database of indexed insurance policies. In order to ensure you have the most appropriate cover, our insurance brokers will fully review any policy before it is recommended to you.
PSC Direct is an entity of PSC Insurance Group, one of Australia’s largest private insurance broking houses. This affiliation offers us access to a range of leading insurers and underwriters as well as membership of a range of national and international insurance organisations. Part of such a wide insurance network, PSC Direct is best placed to source cost effective covers for our clients.
Protecting your business is important to us. We understand that insurance can be complicated, and we’re here to simplify it for you. We provide advice and cover to a range of businesses across Australia, in industries from Accounting to Engineering, Mining, Retail and Trucking. We know the policies necessary to fully protect your business and assets in the specific sector you operate in.
We are able to offer a range of policies from standard Public and Products Liability to more specialised covers such as Management Liability, Commercial Property, and Cyber Insurance and Tax Audit Insurance. We’re not only here to source your policy but to develop a business partnership with you. We will work with you as your business changes to offer alternative or additional insurance policies, or in the event of a claim, we’ll assist you until settlement.