Going out on your own as a sole trader can be an exciting new chapter in your life. One of the many things to consider when you’re a sole trader is what kind of insurance you will need. To make it easier, we’ve put together a few different kinds of sole trader insurance you might need.
Professional Indemnity Insurance
This is a type of insurance that will protect you against the costs of legal claims in the event of a third party suing or claiming for damages due to a breach of professional duty. To put it simply, if you do not accomplish a responsibility covered by your work or contract, you could face legal action. Professional indemnity insurance gives you the ability to defend your business and prevent financial loss.
Sole Trader Income Protection
This insurance will provide financial support should you suffer from an injury or illness that stops you from working. Not only will it help you deal with expenses such as childcare, mortgage repayments, groceries and bills, but it will also bring you peace of mind during an already stressful time.
When you’re a sole trader, you rely on your tools and equipment to earn money. This is one of the most important things you’ll need to get covered should the worst happen. Tradies are a common target for thieves, and they’re getting more creative in breaking, entering and robbing. That’s why you need to get your tools, equipment and any other assets you use for work insured.
Public liability Insurance
With this type of insurance, you can protect your business against claims of injury, damage, or any other detrimental issues caused by your job or business. For example, you leave your toolbox on the floor on a job and someone trips over it and injures themselves, or you accidentally spill coffee on your client’s laptop causing damage. You will be held accountable if something like this happens, so this insurance can cover legal fees and compensation payouts.
Are you a sole trader wanting to get your insurance sorted? Talk to our friendly team today.