Insurance for Sole Traders

Business Insurance for Sole Traders

Importance of Business Insurance for Disability Support Workers

As more individuals choose disability support work or establish related businesses, business insurance becomes crucial. The NDIS workforce is rapidly growing, with over 350,000 workers expected by 2024.

Key Insurance Products for Disability Support Workers

Disability businesses in Australia need three types of insurance:

1. Workers Compensation
2. Professional Indemnity (PI)
3. Public Liability (PL)

Workers Compensation Insurance

Compulsory for employers, this insurance covers employees’ loss of wages, medical expenses, and rehabilitation costs for work-related injuries or illnesses. It may also provide lump sum benefits for death or permanent impairment.

Professional Indemnity Insurance

Essential for disability workers, PI insurance protects against financial loss from negligence, errors, or omissions. It covers legal and defense costs and includes run-off cover for claims made after ceasing work.

Public Liability Insurance

Vital for disability support workers, PL insurance covers legal costs and compensation for third-party injury or property damage claims. Combining PL and PI policies can reduce shared risks and costs.

Mandatory Insurance for Disability Support Workers

• Public Liability and Professional Indemnity Insurance: Required across all Australian jurisdictions.
• Workers Compensation: Needed if the business has employees.
• NDIS Providers: Must maintain adequate PL, PI, and Workers’ Compensation insurance.