As a sole trader, you will be running your own business. This means that you are personally liable for any damages to the clients you work with, companies you are contracted with, and to third parties. If damages arise from how you conduct your business activities, provide services, or have clients that could damage property, this is ultimately your responsibility, and having insurance will protect you from negative financial outcomes. Furthermore, as a Sole Trader, you won’t be covered by workers compensation insurance, and this will also fall under your responsibility.
Below we will discuss the insurances you might want to consider and their purposes.
Public Liability and products insurance is insurance to protect you from being sued by the public for damages caused by your actions.
For example, if while with a client you accidently break something in their home, or break something while out in the community with them, this insurance will help cover the cost of the damages to this property or to people effected. This insurance will also cover you if your client breaks public property while under your care.
Public Liability Insurance is required of all contractors that Lend A Friend engages, with a cover of $10,000,000 or more.
We can assist you with obtaining correct public liability and products insurance.
Disclaimer about Public Liability Insurance
Professional indemnity insurance (including medical negligence) is to indemnify (protect) you from damages caused to clients because of bad advice, negligence, or poor work you provided them. Some examples include a client wanting to sue you for:
Professional Indemnity Insurance is required of all contractors that Lend A Friend engages, with a cover of $1,000,000 or more.
We can assist you with obtaining correct professional indemnity insurance.
All people who drive must have at minimum Compulsory Third Party (CTP) insurance to cover the cost of injury or death to third parties caused by a road accident. This insurance is often added to your car registration cost, as it is a legal requirement for Australian drivers to have this insurance.
Compulsory Third Party Insurance is required of all contractors that Lend A Friend engages, and it is illegal to drive a car which does not have this insurance.