Are you thinking about becoming a sole trader? Do you know which insurance options you'll likely need?

Product or Public Liability insurance

Liability insurance protects you in case anyone sustains an injury whilst on your business property. It also covers any damage your property (including your products) causes to a third party. So whether someone visits your office and sustains a slip-and-fall injury or your plant or equipment causes third party property damage, these policies prevent you from being personally liable for the associated costs.

Workers Compensation insurance

If you're able to hire employees to help fulfill services and meet customer needs, Workers Compensation is a legal requirement for your business. Should your direct hires or independent contractors injure themselves on the job, a Workers Compensation policy can cover those incurred costs so your business doesn't take a financial hit.

Property insurance

We use this term more generally to explain several different types of insurance that protect your property assets—most notably your building or office space, tools and equipment, and other related goods.

For example, building insurance protects your physical office space from unforeseeable events such as floods or fires and any associated damage. Tools of Trade insurance helps cover specified equipment you use for your trade and can include vehicles. However, depending on the breadth of your business and your available resources, you should also consider investing in a vehicle insurance policy for all your commercial vehicles.

Note that not all types of equipment, tools or property qualify for coverage under these types of insurance. Check with your insurance broker to ensure you obtain the right kind of coverage for every facet of your business, as well as every piece of equipment that could be at risk for damage or loss.

Cyber insurance

So much of what we all do is on the internet, from working remotely to communicating with family and friends, to buying products and scheduling services. Depending on the nature of your business, the client information you store could range from minor (such as email addresses) to major (including credit card numbers or personal identifiable information).

With cyber insurance, you help protect your online business from cybercriminals. Plus, if you ever deal with disruptions related to hacking or other cyberattacks, this kind of insurance may help you to continue earning profits.

Professional Indemnity insurance

Does your business offer advice or consultation-based services? If so, you may wish to consider Professional indemnity insurance. This type of insurance allows you to give expert advice and related services whilst still protecting you against any legal claims.

Specifically, if a client claims you omitted valuable information which led to serious issues or losses—or they allege you acted maliciously or neglectfully—Professional Indemnity insurance will cover the legal costs related to these kinds of losses.

If you have any questions about these insurance types, or you're ready to invest in a policy as a sole trader, get in touch with Westralian Insurance. We'll design an insurance solution tailored to your business, so you can move forward with confidence in your trade and serve your clients as effectively as possible.