Insurance FAQ’S

Several factors can impact the cost of policy premiums for startup insurance in Australia. These include the type of coverage your business activity requires, such as Professional Indemnity, Public and Products Liability, or Cyber insurance, which can all be included inside an Information Technology policy. The nature and scope of your business activities, the services you provide, and the sensitivity of the data you hold may also affect your premium. Other contributing factors include annual turnover, number of employees, location, claims history, and the cover limits and applicable excess you select. Because each business is different, costs can vary significantly, and premiums may change at renewal in line with risk and claims experience.

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.

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.