Sole trader insurance
You have 3 insurance options when it comes to sole trader insurance, to protect you and your business: Income protection, personal accident insurance or business insurance.
![Image: Supplied Income Protection](https://www.finder.com.au/finder-au/wp-uploads/2015/09/Income_Protection_Supplied_1800x1000.jpg)
Some 60% of Australian business owners are sole traders. As a sole trader, you have the freedom to be your own boss and pursue your true passions. But it also means you bear the brunt of a range of responsibilities, including workplace safety and insurance.
Response | 65-74 yrs | 55-64 yrs | 45-54 yrs | 35-44 yrs | 25-34 yrs | 18-24 yrs |
---|---|---|---|---|---|---|
None of the above | 1.14% | 2.33% | 5.7% | 5.08% | 3.67% | 2.06% |
Getting older (but not retiring) | 0.57% | 1.16% | 3.11% | 2.03% | 0.92% | |
Retirement | 0.57% | 0.58% | 1.55% | 1.52% | 0.92% | 1.03% |
Starting a new job | 0.57% | 1.74% | 2.59% | 4.06% | 3.21% | 2.06% |
Starting my own business | 0.57% | 0.58% | 0.52% | 1.02% | 1.38% | 1.03% |
Buying a home | 1.74% | 3.63% | 5.08% | 3.21% | 1.03% | |
Moving home | 0.58% | 1.04% | 0.51% | 0.92% | 1.03% | |
Having a baby | 2.59% | 4.57% | 5.05% | 2.06% | ||
Getting married | 1.04% | 1.52% | 2.75% | 1.03% | ||
Buying a car | 1.38% | |||||
Your children moving out of home | 0.46% | |||||
Starting university education | 1.03% |
Click each to explore the policies you can apply for as a sole trader:
Income protection Personal accident insurance Business insurance
Provider | Occupation | Excess | Quote (monthly) |
---|---|---|---|
DUAL | Accountant | $2,500 | $51.79 |
DUAL | Administrator | $0 | $52.02 |
QBE | Administrator | $0 | $57.06 |
QBE | Accountant | $1,000 | $71.50 |
Vero | Plumber or carpenter | $2,500 | $95.56 |
Vero | Accountant | $2,500 | $114.81 |
Quotes are accurate as of March 2023. Based on a small business owner based in NSW who earns $150,000.
Get a personalised liability and professional indemnity insurance quote
"There are some insurance covers that are simply 'must haves' like Public liability, General property, Contents & Stock and Workers' compensation. Then there are others that are highly advised, including most business insurances like Business interruption insurance and Cyber insurance.
When it comes to insurance, the biggest mistake a sole trader can make is not having enough 'sum insured' – that is, not having enough insurance coverage to reflect today's replacement costs. Being underinsured is a huge business risk, which is why sole traders should seek advice from a professional insurance adviser."
These are the types of business insurance to consider if you're a sole trader:
Unlike most employees in Australia, sole traders are not eligible for workers' compensation. Not having access to work cover means that if you're injured on the job, you won't have access to any form of financial compensation.
A sole trader doesn't qualify for workers' compensation because, in order to be eligible, you must be employed by another person or company.
When you're their employee, they're required to take out workers' compensation on your behalf.
Without workers' compensation, there are 2 main ways you can get covered for injuries you may sustain.
The first, cheaper option is personal accident insurance, which will provide you with a lump sum when you have an accident resulting in an injury and can't work. Personal injury insurance comes in a few forms, including standalone accident cover and total and permanent disability insurance.
The other stronger form of cover is income protection, which can also help make up for lost income when you are unable to work. The big difference between income protection and personal accident insurance is that income protection will also cover you when you get sick.
When considering sole trader insurance there are a few important factors to look at:
Business expenses insurance has waiting periods anywhere from 14 days to 12 months. The waiting period determines how long you will have to wait to receive the benefit after you make a claim. The shorter the waiting period the higher your premium.
No 2 policies are the same. Make sure you understand the features and limitations of your policy. Take note of how things are defined to avoid any misunderstanding and disappointment when making a claim.
Another important factor that you might want to check is how flexible your policy is. For example, some premiums increase in-line with inflation, in which case you can avoid being underinsured.
To help you answer this question, ask yourself:
Read the Finder review of Zurich income protection and receive a quote based on your details. Compare Zurich income protection to other income protection policies available.
Read our guide to the various types of insurance available to the self-employed.
If you have more than one income protection policy they will both pay out – but don't expect to "double dip".
Income protection provides you with income replacement for sickness and illness but not for pregnancy. However, it does offer features to help you out during pregnancy.
Running a small business? Find out how to get income protection to protect your own salary in case you get injured or fall ill.
Income Protection can cover your income in case anything happens to you while travelling overseas, some conditions apply.
Life insurance and income protection serve two different purposes but can both offer valuable cover alone and when combined.
Income protection insurance are generally tax-deductible, so read on to find out when premiums are tax-deductible and how much you can claim.
NobleOak has been offering personal insurance solutions direct to Australians for over 137 years. Discover the benefits and features available on the NobleOak Income Protection policy and make a secure enquiry for cover.
Compare income protection policies available from OnePath and receive a secure quote from an insurance consultant. Find out how OnePath compares to other insurers.