Why Do Sole Traders Need Public Liability Insurance in Australia

Why Do Sole Traders Need Public Liability Insurance in Australia

June 07, 2022 Views: 231
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Since accidents can happen even in the best-managed workplaces, as a sole trader, you need to bear the responsibility for any damages caused by your business. Every individual working as a sole trader should get public liability insurance to protect themselves and their business. Continue reading to know how you can get the most suitable public liability insurance in Australia to secure your business against financial loss.


Why Do Sole Traders Need to make sure they have the right insurance

Here are the top reasons as to why a sole trader should ensure they are covered by the correct insurance for their individual needs:  

  1. The business world is full of risks, and sole traders are no exception. Having the right insurance is important to be protected against debts, liabilities, and lawsuits. Whether it is an accident, theft, or natural disaster, individual public liability insurance can protect a sole trader against potential bankruptcy and liquidation when insured correctly. 
  2. Incomplete legal liabilities may cause a loss in the business, especially that involves expensive items like computers and automobiles. Insurance will take care of these liabilities. 
  3. Most often, if not always, a sole trader gets insurance because the client asks for their Certificate of Currency. Some contracts explicitly mention that sole traders should have insurance before the business deal or transaction takes place. The sole trader must make sure they understand what they are covered for and ensure they are insured under suitable coverage for their unique requirements.
  4. At times, the landlord will ask for your insurance before renting to your proprietorship’s name. Similarly, you may need suitable insurance coverage while applying for a loan.
  5. With no sole trader worker compensation available, such professionals do not receive financial assistance against illness or injury during their professional life. Not having the correct insurance could lead to financial loss or increased debt/liability which is the last thing you want during a time like that.Sole trader insurance protects YOU as the most vital component of your business. With a cover against any accidents, injuries, or financial losses, you can easily manage business uncertainties and secure your wellbeing.


Which is the Best Insurance for Sole Traders

For sole traders in Australia, Public Liability Insurance is considered the best. This policy protects you during events when a customer, supplier, or public claims that they sustained injury or property damage due to your negligent business activities. If your business contains the slightest chance of causing personal injury or property damage to anyone, you should certainly consider sole trader liability insurance as a necessity. Any damage or injury due to your business activities will make you liable to pay for all costs to the person who suffered. While minor events will cost you a few hundred dollars for repairing or replacing the damaged property, the figures can climb up to the millions in case of a major injury or death. Both you and your business are responsible for the costs. If you do not have enough money to settle the claims, you may be forced to end up in personal bankruptcy. You can avoid this daunting situation by getting sole trader Public Liability Insurance. With the appropriate cover in place, you can cover above mentioned claims with the insurance. It will not have any impact on your financial situation. Note: Every sole trader has different risks based on the unique challenges you face. Besides public liability insurance, you may need Professional Indemnity Insurance, Health, and Sickness Insurance, or Business Pack Insurance that offers a combination of multiple insurances. You have to find the insurance that covers the terms you seek and meets your requirements as policies can be tailor-made.


Businesses Covered Under Sole Trader Business

Sole trader business insurance comprises many distinctive fields where this cover can be utilized to its full potential. The professional niches where sole trader business is most likely to perform well are: 


How Sure Insure can Help You Find Best Public Liability Insurance in Australia

As a sole trader operating on an independent level, we understand the ordeals that a routine business day can bring to the table. This may comprise concerns related to compensations levied by the third party individuals on the owner seeking a settlement. Sure Insure is available to sort all your regular sole business trader queries in an attempt to deliver the best of plans and policies that protect you and your enterprise on a holistic level.

  • We offer tailor-made insurance policies for sole traders encompassing a wide range of businesses that need effective insurance plans with optimized research and all-around protection.
  • We make you understand the pros and cons of each policy. Sure Insure intends to deliver the updated compliance and regulations all categorized under Australian Law to seek upgraded policies with amplified cover protection
  • We assist you in identifying the suitable Public Liability Insurance dependant upon the scale and revenue of a business to avoid unnecessary expenditure on the business owner
  • We help you choose the most cost-efficient and suitable insurance policy that will protect you and your business with precision and care.

SureInsure Australia strives to offer the most suitable sole trader insurance covers to help an independent business owner scale its operations and succeed in the long run. Get in touch with our expert team now to get an obligation-free insurance quote and policies that best suit your business needs.    

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

Nilima Pokala ABN : 11 642 332 698, AFSL : 525177

This article originally appeared on Why Do Sole Traders Need Public Liability Insurance in Australia and has been published here with permission.

Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Nilima Pokala.

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