A Quick Guide – Insurance Sole Traders Need to Consider in Australia

June 26, 2023

As a sole trader, you are usually the CEO, Marketing, HR, Legal and Operations of your company all rolled into one. Understandably business insurance might not top your concerns. On the other hand, you’ve worked hard to build your business into what it is today. At imar, we can take some of the load off and help find what cover is needed to protect you and your trade business.

Are you a Sole Trader?

Firstly, you need to know if your business makes you a Sole Trader by law. According to the Australian Government Business website, Sole Traders are recognised legally in Australia if: 

  1. Your company is under your name only, and not listed under a trust or another name.
  2. You take sole responsibility for the profits and losses of your company.

You may have employees and still be a sole trader, as long as you meet both the above requirements.

What Insurance do Sole Traders Need to Consider in Australia?

This section quickly outlines the 5 main types of insurance cover Sole Traders may need. The first three are required legally, and the last two are protection measures all Sole Traders should strongly consider. imar can tailor each of the below to suit your businesses’ specific needs, and work out a package deal where applicable to simplify the process. Click the links to learn more about each type of insurance, or contact us for a free online quote.

  1. Workers Compensation Insurance (Workers Comp)
    Workers comp is mandatory for any business which employs workers, to protect your workforce in cases of injury or illness. It is not needed if you are the only worker in your company. In Victoria, cover must be provided through an authorised insurer, and a good policy can be very helpful when attracting apprentices or new employees. Workers comp is offered through imar’s parent company Gallagher, who cater very well to small businesses.
  2. Public Liability Insurance
    Public liability insurance is compulsory when entering into, and completing contract work for your trade clients. It covers third party death, injury and property damage, and is an important part in showing authorities you have done your due diligence by preparing for these unlikely scenarios. Without this cover, legal consequences of an incident could greatly harm your company’s reputation and finances.
  3. Commercial Vehicle Insurance
    Third party vehicle insurance connected to the registration is legally mandatory for any vehicle you use for work purposes, and covers damage, theft and third party injury. Vehicles can be a ute or van specifically used for jobs, or your own personal car which you use exclusively for work. For larger scale jobs, machinery such as earth movers and excavators also fall under this category, and will need to be insured to begin work on a site.
  4. Personal Accident and Illness Insurance
    This cover can apply to companies with and without employees, however it is mainly needed for one employee businesses. Similar to workers comp, it protects you, and those who rely on your income (partner/family) from injury and illnesses which stop you from working. Although not legally required, this will provide you with peace of mind, and an important financial backstop for you and your family. Cover is affordable, but can also range quite a lot in price, depending on the income needed. It’s important to note this is different income insurance.
  5. Assets and Tools Insurance
    Assets and Tools Insurance cover is once again, not legally required, but should strongly be considered to protect your equipment, tools, and – if you have one – office / factory in case of theft, damage or loss. The more expensive your tools, the more necessary this cover is to protect the finances of your business. As with personal insurance, prices can range widely, and be tailored very specifically to you and your business.

As always, your insurance is up to you. For great insurance and peace of mind, give us a call.

Let’s talk! There are 3 easy ways to get a quote for public liability insurance: 

  1. Call 1300 540 156 to speak to our dedicated tradie broker team
  2. Fill out our online Contact Our Experts form 

Go online and fill out the Quote form



You should consider if the insurance is suitable for you and read the Product Disclosure Statement (PDS), Financial Services Guide (FSG) and policy wording before making a decision to acquire insurance. Please ask us for more details before we provide you with our services. Our FSG is available on our website.

Related articles

September 12, 2023
Safeguarding Landscapers, Lawn Mowers and Gardeners: The Benefits of Insurance
Maintaining beautiful landscapes and well-manicured lawns requires the skilful hands and dedicated efforts of landscapers and lawn mowers. Landscapers, Lawn…
Read more
July 24, 2023
Tradies Ultimate Guide To Public Liability Insurance
As a tradie, understanding the importance of public liability insurance is crucial to protect your business from potential loss. This…
Read more
Commercial Motor Insurance
July 10, 2023
Small Business
What are the 4 Types of Insurance that all Small Businesses Should Consider?
Whether you’re in construction or martial arts, making sure your small business is covered for unforeseen events is of the…
Read more