The insurance sole traders commonly hold depends on how they operate and the services they provide. This typically includes Professional Indemnity insurance, which is designed to respond to claims of professional negligence or breach of duty, and Public and Products Liability insurance, which is designed respond to third party bodily injury or property damage claims arising from business activities. Both covers may extend to investigation costs, and depending on the policy, defamation. Additional covers such as Commercial Property, Business Interruption and Employee Fidelity may also be relevant depending on business structure and services offered.

Public and Products Liability insurance is not a legal requirement for sole traders in Australia, but it is commonly held across a wide range of industries. Many clients, venues and platforms may require you to hold a current Public Liability policy before engaging your services. Without this type of cover, you could be personally liable for legal costs and compensation claims if a third party is injured or their property is damaged as a result of your business activities. Speaking with an insurance broker can help you understand whether Public and Products Liability cover is appropriate for your circumstances.

Professional Indemnity insurance is designed to cover claims arising from professional negligence, errors or omissions in the services you provide. Whether sole traders need Professional Indemnity insurance depends on the nature of the work they do. While it is not a legal requirement for most sole traders in Australia, certain regulated occupations such as financial advisers, tax agents, migration agents and some Allied Health professionals, may be required to hold Professional Indemnity cover under their licensing or registration obligations. Outside of these regulated professions, sole traders may hold Professional Indemnity insurance. Many clients, professional associations and booking platforms may expect you to hold current Professional Indemnity cover before engaging your services. Without this type of cover, you could be personally liable for legal costs and compensation claims. Speaking with an insurance broker can help you understand the level of cover appropriate for your circumstances.

You should notify your insurer as soon as you become aware of a claim or circumstance that may give rise to a claim which could include a client complaint, you discovering an incident or an allegation of harm. Claims should be made in writing and handled in line with the claims notification requirements which will be outlined in your policy wording.

A Certificate of Currency is issued by an insurance company and is something you can use as proof that your existing insurance policy is valid. It contains all the information regarding your policy. You may be asked from time to time to prove your insurance - for loans to your business, for landlords of your premises, or for certain clients you might have. The moment you purchase your insurance from upcover you can send your proof of insurance to whoever requires it, at just a click of a button.