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Australia’s climate is influenced by two alternating weather patterns, La Nina and El Nino.

These weather patterns are measured by the Southern Oscillation Index, which records interactions between the atmosphere and the ocean air.

Australia is presently experiencing a La Nina event, which involves cooling ocean surface temperatures in the central and equatorial eastern tropical Pacific Ocean, alongside high winds, low pressure systems and higher rainfall.

It may also mean more frequent storms, floods and cyclones, especially across NSW, Queensland and the Northern Territory. The Queensland floods of 2010 to 2011, the NSW and Queensland floods of 2022 and Cyclone Yasi in 2011 all occurred during La Nin~a cycles.

La Nin~a is only one of a number of different variables that influence the climate and the weather. Barometric pressure and local geography are just two of the other factors that come into play.

An understanding of weather patterns enables businesses whose operations are influenced by weather such as agriculture, construction and tourism to plan ahead, so when reasonably predictable weather events occur, they are prepared.

 

WHAT INSURANCE SHOULD YOU TAKE OUT – AND WHAT CAN IT COVER?

It’s important for businesses to understand how their insurance cover could respond in the event of weather events caused by La Nin~a such as flood and cyclones.
What Is A La Nina Weather Event 2

CASE STUDY

Sam runs a café on a river in Southern Queensland. A La Niña event brings excessive rainfall, causing the river to burst its banks and flood. The flood water inundates the café, damaging stock, fixtures and fittings. But as Sam had added a flood extension and business interruption to his business pack policy, he was fully insured for both the physical damage caused to his business and the loss of trade.

LIMITS, EXCESSES AND EXCLUSIONS

Policy exclusions, the excesses you need to pay and limits of liability can vary greatly depending on your insurer and the requirements of your business. Contact your AIB insurance expert to discuss the options recommended for your specific circumstances.

Some business insurance packages have changed to adapt to the new circumstances, so it’s important to check what’s covered and whether you need to update your policy.

DON’T COUNT ON COVID COVER

The pandemic affected businesses in unimaginable ways, with premises needing to close and staff having to isolate. However, businesses that believe they can get cover for pandemics will need to think again. Steadfast Broker Technical Manager Michael White says it’s unlikely any pandemic cover will be available in the future.

“The only cover for contracting a disease will likely be related to very specific things, such as food poisoning or Legionnaires disease,” he says. “Cover will be limited to those diseases that are very specific to particular businesses, or particular premises.”

He adds insurers’ appetite for risk has changed since the pandemic. “They are much more conservative now,” he says. “And this is reflected in what they will cover and under what circumstances.”

CYBER ATTACKS A MAJOR CONCERN

COVID led to millions of people working from home but with that came a greater risk of cyber-attacks. White says insurers are introducing what they refer to as silent cyber or non-affirmative cyber into their business packs.

Silent cyber refers to any potential cyber losses that are contained in traditional property and liability policies that were not specially designed to cover cyber risk. Traditional liability polices weren’t set up to include cyber exposures, White says, and may not deal with risks such as software viruses or malicious code.

“You can get business interruption cyber cover in some cyber insurance policies,” White says. “But in traditional insurance policies you need physical damage to have occurred to the property. Some insurers have now removed any possibility of giving business interruption cover, or any other cover, where a cyber-attack doesn’t cause physical damage.”  

HOW NATURAL EVENTS HAVE AFFECTED COVER

The natural disasters Australia has experienced are also playing a role in changes to cover. Flood cover has always been difficult to get, especially if a business was exposed to flooding. White says the recent flood events haven’t made the situation any easier. “Flood cover is available but the cost of it can be very high, which means many small business owners just don’t take it out.”

He adds insurers are now more cautious about areas that are exposed to disasters such as bush fires. “For example, some insurers are now looking at access issues in relation to bushfires, such as whether there is only one road in and one road out of a particular area, which increases risk. That’s the kind of thing insurers want to know.”

He adds if businesses have closed their premises recently and moved their operations online, it’s important to speak to a broker to check they are still fully covered for damage to any premises they own.

Brian Hong, CEO of Infintech Designs, says the pandemic made him rethink his company’s insurance needs. “I thought I had the perfect insurance policies in place, but the pandemic really tested us,” he says. “I’m now very particular about policies that prioritise lost business income.”

Is it time to sense check your insurance cover? Talk to youor AIB Insurance broker today.

Important notice – Steadfast Group Limited ABN 98 073 659 677

This general information does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your Steadfast insurance broker as to whether this business interruption insurance is appropriate for you. Deductibles, exclusions and limits apply. This insurance is issued by various insurers and can differ. You should consider the relevant Product Disclosure Statement and any Target Market Determination in deciding whether to buy or renew this type of insurance. 

To say the last couple of years have been challenging for Australian workers is a major understatement. Since the onset of the COVID-19 pandemic in early 2020, they’ve had plenty to deal with, from juggling home schooling and work commitments, to worrying about whether they’d even have a job a couple of months down the track.

Managing post-Covid employee burn-out

Fifty-one per cent of Australians working during Covid-19 reported feeling stressed as a result of changes in work routine and organisation, according to 2021 Ipsos research. The same number cited increased anxiety around job insecurity as a significant challenge.

Those working on the frontline, for instance in healthcare roles, have done it particularly tough. Dedicated employees put in many hours at the height of the crisis to keep the healthcare system operational, the supermarket shelves stacked and the elderly and vulnerable protected. They sweated their way through long weeks and months wearing personal protective equipment (PPE), they contended with staff shortages and they faced the emotionally difficult task of supporting COVID-19 sufferers and their families.

Meanwhile, individuals whose employers pivoted to remote working faced a different set of challenges during the long months of lockdown, with 45 per cent stating they felt lonely and isolated while toiling at home, according to Ipsos.

BATTLING BURN-OUT

It’s little surprise many workers are now battling physical and mental health issues including, in some cases, overwhelming feelings of stress and exhaustion. This is the definition of employee or workplace burnout, a condition which can lead to fatigue, behavioural changes, anxiety and depression.

Individuals who develop employee burnout may be entitled to workers compensation for mental injuries they suffer in the course of their employment, provided they can show a substantial connection between their work and the symptoms they are experiencing.

That means demonstrating that their condition constitutes an ‘injury’ under the workers compensation legislation in the relevant jurisdiction.

If an employee burnout claim is disputed, the assessor will examine work and non-work related factors before making a determination.

MAINTAINING A HEALTHY WORKPLACE

Prevention is always better than cure. Fostering a healthy workplace is the best way to minimise the incidence of employee burnout within your team.

In volatile and uncertain times, it’s critical to support mental well-being, says Steadfast technical broker manager Annette O’Brien.

“Depending on the nature of the business, leaders may need to support a gamut of measures,” O’Brien says. “These could include providing the right equipment so employees can discharge their duties effectively, ensuring work-stations are ergonomically sound, and having enough staff available to manage the workload.”

Offering support, counselling and treatment services – and encouraging workers to make use of them – can help teams maintain good mental health when circumstances are challenging.

“Employees who don’t have access to appropriate support mechanisms are far more likely to suffer psychiatric injury or quit their jobs,” O’Brien says. “Providing them with support that could prevent this occurring is good for them and good for your business too.”

A broker can help you determine whether you have adequate workers compensation cover for your business. Contact your AIB broker today to find out more about your business insurance and the level of protection it provides.

Important notice – Steadfast Group Limited ABN 98 073 659 677

This general information does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your Steadfast insurance broker as to whether this business interruption insurance is appropriate for you. Deductibles, exclusions and limits apply. This insurance is issued by various insurers and can differ. You should consider the relevant Product Disclosure Statement and any Target Market Determination in deciding whether to buy or renew this type of insurance. 

Like so many things, business travel is now back on the cards since most countries have re-opened their borders after the easing of COVID restrictions. But if you’re heading away for work, it’s important to make sure your insurance covers you if fall ill before or after you take off.

Let’s say you run an import business and you want to travel to India to see your suppliers. You’ve booked your flights and accommodation and you’re ready to leave. But a few days before you’re due to go, you test positive for COVID. Aside from the inconvenience, you want to ensure you have the right corporate travel insurance policy in place so you’re not out of pocket for your travel costs.

“Most corporate travel policies provide some form of COVID insurance cover for medical expenses if you contract the corona virus overseas and also for cancellation costs if you get COVID and it stops you from travelling,” says Steadfast Broker Support Manager John Clark.

It’s important to understand how the policy will respond if you contract COVID overseas and are required to self-isolate, for instance in in a hotel, serviced apartment or other rented premises.

“Those costs typically won’t be covered by the medical expenses section of the policy. So, make sure your policy covers expenses incurred as a result of contracting COVID that are not medical expenses, such as missed flights. Travel costs are volatile right now and re-booking cancelled flights may cost substantially more than the original booking. So make sure your policy covers this cost,” says Clark.

“It’s quite possible to incur hundreds of thousands of dollars in expenses if you’re hospitalised overseas after a car accident, break your leg or fall seriously ill, especially in the US. So make sure your policy includes cover for a large amount for medical expenses, hospital admission and medical evacuation,” he recommends.

Clark says the relevant consideration for business travellers is to ensure their corporate travel policy has sufficient cover for medical and hospital expenses overseas, and not just for COVID. You also may want to make sure you’re covered if you can’t travel because you are a close contact and have been required to isolate or if your business travel partner can’t travel because of COVID and you are consequently forced to change your travel plans.

What’s key is to read the policy fine print so you truly understand what it covers before you need the insurance. It’s also essential to know the limits of the policy and its exclusions, as well as whether you are still covered should your trip be extended.

POST-COVID WORK TRAVEL CONSIDERATIONS

There is a number of other considerations business travellers need to make before embarking. It’s vital you understand the COVID testing rules in the country to which you are travelling, as well as your airline’s rules, and comply with them. 

It’s also essential to check the federal government’s Smartraveller site before you go. Most insurance policies won’t cover you if the government’s alert level for the country to which you are travelling has escalated to ‘do not travel’. If the alert level has risen, it’s wise to reconsider your plans. Policies will also typically not respond if authorities change or instigate rules such as lockdowns that prevent you from travelling.

Your AIB Insurance broker can help you to choose the right corporate travel policy for you. Talk to us today to find out more.

The small-business sector was hit hard by the pandemic. The Reserve Bank of Australia found the sector was disproportionately affected by COVID because these businesses are more likely to be in industries that were affected by restrictions on movement, such as cafes and restaurants, as well as arts and recreation.

If your business was more permanently affected by COVID constraints, it’s time to map out the major shifts that have happened in it such as staff changes and moving into different premises. These changes may affect the amount and type of insurance you need.

UPDATE YOUR BUSINESS PLAN AND STRATEGY

It’s time to update your business plan once you’ve mapped out any new risks. This will include your risk-management strategy. As part of your plan, include your sales pipeline and projected revenue. Knowing what’s coming up regarding future sales gives you an idea of how your business is likely to perform and this will be a factor in determining the amount of insurance cover you need.

Creating a budget and cash-flow forecast is another important management tool that should form part of your plan. It enables you to see at a glance what you need for your day-to-day commitments and helps you understand and plan for any gaps. These types of forecasts also help you make informed decisions about future expenditure.

KNOW WHAT YOU CAN CLAIM

Make sure you understand which insurance is tax deductible . While your accountant is in the best position to help with this, generally the ATO allows you to claim a deduction for most operating expenses in the same year you incur them. When it comes to insurance, you are generally able to claim for cover such as fire, professional indemnity, public risk and workers’ compensation.

IS YOUR INSURANCE RIGHT FOR YOU?

When reassessing your insurance, it’s important to know if it’s fit for purpose. Steadfast Broker Technical Manager, Michael White, says any physical property needs to be reviewed to ensure the sum insured is correct. “There are online tools you can use to calculate the replacement cost for buildings,” he says.  The sum insured needs to be the replacement value of the building, not its market value.

White adds that ideally, a valuer or a quantity surveyor should be used to prepare a more detailed calculation. “Don’t just pluck a sum out of the air, which is what many people do,” he says. “And don’t just roll over the figure that you had from the previous year and add a minor increase for inflation. The costs of building works are going up significantly and this needs to be reflected in your insurance cover.”

There are risks to undervaluing your property or not increasing the amount you insure it for, he says. “The main one is that in the event of a catastrophe, such as a fire, you won’t have enough cover to rebuild.”

Your Steadfast broker can help ensure your insurance cover will protect you in the event you need to make a claim. Contact us today to find out more.

Important notice – Steadfast Group Limited ABN 98 073 659 677

This general information does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your Steadfast insurance broker as to whether this business interruption insurance is appropriate for you. Deductibles, exclusions and limits apply. This insurance is issued by various insurers and can differ. You should consider the relevant Product Disclosure Statement and any Target Market Determination in deciding whether to buy or renew this type of insurance. 

More businesses are embracing the principles of the circular economy in the pursuit of better environmental outcomes and as part of the push towards a net zero economy by 2030. Insurers are working alongside these businesses to support their efforts to achieve a clean, green future.

HOW ARE INSURERS SUPPORTING THE CIRCULAR ECONOMY?

The circular economy is a business model through which manufacturers consider the whole of a product’s life cycle, or multiple life cycles, during design. The idea is to maximise a product’s use through recycling and refurbishing, to help reduce the use of natural resources.

AXA is one insurer that is becoming an active participant in the circular economy. It has said, “our ambition is to be the collaborative economy’s principal partner.”

To this end, since 2015 it has been the global insurance provider to the BlaBlaCar car sharing platform and it has subsequently provided cover to other businesses that are part of the sharing economy, including OuiCar, Uber and Deliveroo. AXA cites Ernst & Young research that indicates one shared car can replace between 9 and 13 individually owned vehicles as evidence to support its foray into this area.

The insurer says, “the circular economy offers an opportunity to insure new activities related to product disassembly, refurbishing and recycling, as well as to imagine new kinds of insurance to promote the circular economy.”

INSURANCE SUPPORTS NET ZERO

The insurance sector is also an important contributor to the move towards a net zero emission economy and the circular economy is part of that. 

Eight leading insurance companies including AXA and Allianz have formed the Net Zero Insurance Alliance to work towards net zero greenhouse gas emissions by 2050. Insurance and reinsurance companies recognise they have an important part to play in achieving the transition to net zero emissions economies. Many have ratified the Paris agreement, which is an international climate change treaty to keep limit global warning to two degrees Celsius above pre-industrial temperatures.

BETTER ENVIRONMENTAL OUTCOMES AFTER DISASTERS

Insurers are exploring other ways to achieve better environmental outcomes after a claim. Insurable events and natural disasters often involve significant damage to property. They increasingly want to make sure materials are disposed of in an environmentally-friendly way and recycled where possible.

An Insurance Council of Australia (ICA) spokesperson explains residential waste removal and disposal is a key part of the overall claim cost. “By working with suppliers across the claim supply chain, insurers can contribute to a broader level of decarbonisation beyond their own operational footprint.”

If you need to make a claim on your insurance policy, it’s important to contact your insurer who can provide guidance about safe and environmentally-friendly disposal of rubbish and other damaged goods. Your AIB Insurance broker can assist you through this process. 

Important disclaimer – Steadfast Group Limited ABN 98 073 659 677, its subsidiaries and its associates.

The views expressed are those of the author only and do not necessarily reflect those of Steadfast.

This magazine provides information rather than financial product or other advice. The content of this magazine, including any information contained on it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.  

Information is current as at the date articles are written as specified within them but is subject to change. Steadfast, its subsidiaries and its associates make no representation as to the accuracy or completeness of the information. Various third parties, including Know Risk, have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of Steadfast Group Limited.

Mould is invariably associated with damp conditions. Australia has experienced its fair share of those in the summer of 2021-22, with widespread flooding across Queensland and northern NSW as well as scores of soggy days elsewhere around the country.

WHY YOU CAN’T INSURE AGAINST MOULD DAMAGE

April 2022, for instance, saw many sites in greater Sydney record rainfall totals equal to 150 to 250 per cent of the April average. Some suburbs received a bucketing that was close to, or more than, their April monthly average, in a single day.

Outbreaks of wet weather mould can damage your property, fixtures and fittings. Unfortunately, that type of damage is unlikely to be covered by your property and contents insurance. Most policies exclude mould damage as a matter of course. That’s because the damage caused by mould can be minimal if it’s addressed promptly. As such, outbreaks are considered to be preventable events.

COLLATERAL DAMAGE

It can be a different story though if mould damage is associated with another claimable event, such as flooding or water ingress, according to Steadfast Group’s Broker Technical Manager, Michael White.

“While policies may exclude mould damage per se, the individual circumstances of your claim will determine whether the damage is covered,” White says.

“If your house has suffered cyclone damage, for example, and has been locked up, then a mould outbreak that has occurred as a result would likely be covered as part of that claim. Or if the pipes in your house burst while you’re on holiday and there’s water running through the property for an extended period of time, any mould damage associated with that event should be covered,” he says.

If, however, you have suffered a mould outbreak merely as a result of moisture in the air, the cost of replacing damaged items will inevitably be on you.

TAKING PREVENTATIVE MEASURES

Prevention is always better than a cure. There are steps you can take to reduce the incidence of mould outbreaks in your property and to remediate them effectively when they occur.

They include opening windows and doors to air out damp rooms, wiping hard surfaces with detergent, white vinegar or a commercial mould removal product and sponging soft furnishings with white vinegar or baking soda before drying them out thoroughly.

It’s also important to attend to any underlying causes of mould as soon as a problem is detected. This includes leaky showers, pipes and ceilings and structural issues such as rising damp.

COVER WHEN IT COUNTS

The right insurance cover will help you safeguard your personal and business assets, in the event of damage or loss. If you haven’t reviewed your policies for a while, now is a great time to consider whether the cover you have is appropriate for your needs. Contact your AIB Insurance broker today if you’d like to review yours.

Employers have a duty of care to maintain a safe workplace as far as is reasonably practicable. When it comes to COVID, this means employers must take all reasonably practicable steps to prevent the spread of the virus in the workplace.

This includes having a COVID-19 plan that promotes social distancing, hygiene and cleaning; sets out how the business will respond to any possible transmission in the workplace; and follows government health orders. Many businesses are also providing rapid antigen tests for their employees at no cost to the employee.

“If a worker contracts COVID-19 in the workplace, the employer should ensure the worker reports this, takes time off work and self-isolates. If the worker is entitled to make a workers compensation claim, the business should also help the worker through this process. Counselling may also need to be provided,” says Annette O’Brien, Steadfast’s technical broking manager.

O’Brien notes workers are entitled to make a claim for workers compensation for medical expenses and weekly payments if they can show they contracted COVID-19 at work.

“They need to show their work was a substantial or significant contributing factor to contracting COVID-19. Note, however, workers compensation is governed by individual states and territories. Each state and territory has its own regulator that administers and gives advice on workers compensation.”

New South Wales and Western Australia have laws that include a presumption for workers in certain occupations meaning these workers do not have to show work was a substantial contributing factor to them contracting COVID-19.

In New South Wales, those occupations include retail, health, education, hospitality, transport and emergency services. In Western Australia this is limited to health professionals and ambulance officers. However, in November 2021, the New South Wales state government introduced a bill to remove this as an amendment to the Workers Compensation Act. It passed in the lower house and is now to be determined by the Legislative Council.

WHAT ABOUT CONTRACTORS? 

It is compulsory for all employers in Australia to take out workers’ compensation insurance to protect employees if those workers suffer a work-related injury or illness.

“A person who is self-employed or engaged as a contractor is generally expected to take out their own insurance to cover themselves in the event of accident or injury. However, a contractor will need to have workers’ compensation insurance if they fit into the description of a worker,” says O’Brien.

The definition of a worker varies across states and territories. A person needs to be an employee or a deemed worker to be covered by workers’ compensation. They also need to take out workers compensation insurance if they hire someone to perform paid work for their business, as that person is deemed to be a worker.

Says O’Brien “Generally a person who works under a contract of service is considered to be a worker, even if they have an ABN or pay their own tax.”

A deemed worker is usually someone who works under a contract of service, rather than providing a service as a business. So, if a worker is considered to be a deemed worker, they are entitled to workers compensation benefits.

WHAT ABOUT GIG WORKERS AND FREELANCERS?

This type of work is based on workers performing flexible, contractor or freelance jobs which often involve connecting with a company’s customers through an online platform or apps.

“Under current Australian labour laws, these types of workers are generally considered independent contractors, not employees,” she adds.

Workers compensation claims for gig workers such as food delivery couriers are uncertain.

“Many claims have been rejected as these workers could not prove a contract of service.

Whether a platform owner such as a ride sharing service is an employer under workers’ compensation laws will depend on the working arrangements and the rules under the relevant workers’ compensation scheme,” says O’Brien.

Workers compensation schemes in Australia will consider a range of factors to decide if a gig worker is employed by the platform and eligible for coverage by workers’ compensation insurance. This includes control over whether to take on work.

Workers compensation laws can be complex. Talk to your AIB Insurance broker today to make sure you are meeting all your duty-of-care obligations to all staff.

Non-fungible tokens are units of data stored on a blockchain, which is an immutable digital ledger for storing information. Proponents of NFTs argue they intrinsically provide proof of ownership. Examples of NFTs include digital artworks, domain names and in-game items.

As a new invention, NFTs are a highly contested area and there are question marks over the veracity of these instruments. People who buy and sell these assets treat them as a unique store of value. However, there is nothing to stop someone creating an identical copy of an existing NFT. There is also very little understanding about how copyright might work in this area.

INSURANCE OPTIONS FOR NFTS

At the moment, there are very limited ways of insuring NFTs. At time of writing, there was no evidence of anyone making a successful claim against a policy written over an NFT.

It’s worth noting some commentators suggest the instruments don’t require cover. This is because NFTs have intrinsic insurance because they cannot be duplicated or stolen unless the NFT’s owner gives a third party their private keys to access them.

There’s only a handful of specialist insurers that cover NFTs, with no appetite for this risk among larger insurers so far. In particular, the increasing incidence of scams involving NFTs are also unpalatable to mainstream insurers.

“Insurers in general are less inclined to provide cover over digital assets, or are only prepared to provide restricted cover,” says Michael White, Steadfast’s broker Technical Manager.

THE FUTURE FOR NFTS AND INSURANCE

NFT educator, adviser and collector Amy Marie Stroud notes this is an area that is still like the wild west, with no legislation or protections.

“There needs to be further education, both for end users and insurers, as there is limited understanding of the NFT sector unless you’re deep in it every day.”

Over time, Stroud expects insurers will be prepared to provide cover over NFTs, especially if asset owners put in place strategies to mitigate their risks. This might include the use of secure cold wallets, which store digital assets offline, as well as air-gapped wallets, which isolate devices where NFTs could be stored from an unsecure network. Digital wallets that require multiple signatures to access their contents are another option.

“Insurers will have to decide how they cover the human element of hackings and phishing scams, which account for most wallet compromises. Insurers may choose to only cover selected projects to reduce their risk,” says Stroud.

“Large scale, custodial marketplaces such as Coinbase NFT are also likely to play a role. Most cryptocurrency investors leave their funds with custodial exchanges such as these, which are usually protected by insurance,” she adds.

While it’s still early days for insurance for NFTs, it’s an area that will grow over time. Talk to your Steadfast broker for advice about cyber insurance and protecting your digital assets.

There are lots of reasons to be a sole trader – to simplify your business or if you’re just starting out are some of the common ones.

Maybe you’re an artist or graphic designer working from home. Perhaps you’ve got a side hustle as a florist. Or you could be a gardener with a thriving local business. 

In fact, sole traders are the most common of all businesses, with research by the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) showing 61 per cent of all Aussie businesses are sole traders.

Sole traders are people who carry on business under their own name and not through a company or trust.

If you decide this is the right structure for you, it’s important to ensure you also have the right insurance cover for your business.

Which insurances are compulsory?

Steadfast Group broker technical manager Michael White says the spectrum of insurance cover required will depend on the nature of the business the sole trader is conducting.

“If they own a building, they should insure the building. If they don’t own the building and they’re tenants, they need to ensure their contents. If they own a building, they need public liability insurance. Tradespeople going out to work on building sites need public liability insurance. If they own a motor vehicle, they need motor vehicle insurance.”

Even if you are a sole trader, every business with staff must have workers’ compensation insurance. You may also need to take out public liability and professional indemnity insurance.

  • Workers’ compensation insurance

This type of insurance can provide a safety net when staff are injured or unwell as a result of their work.

Workers’ compensation insurance is managed by the states and territories and each state and territory has a regulatory authority that looks after this area. Check your state or territory’s authority’s website to find out more about this insurance.

  • Public liability insurance

This type of cover can protect businesses when their actions have been negligent and caused injury or death to a third party. 

It means if the business is sued as a result of its actions, it can have the resources to respond to any legal actions and the means to pay any damages. 

It may still be appropriate to hold public liability insurance if your business currently has no or limited revenue, or if you are working from home. But your exposures are likely to have changed. So it’s an idea to talk to your insurance broker to ensure the cover you hold remains appropriate to your needs. 

  • Professional protection

Professional indemnity insurance can provide cover for businesses that offer professional services from the legal costs and claims for damages from an act, omission or breach of duty that happens as a result of their actions.

Sole trader insurance options

As a sole trader, it’s also important to consider taking out either income protection insurance or personal accident insurance. These insurances can help protect you if you fall ill or have an accident and you are unable to work for a period. It’s also a really good idea to have health insurance. 

There is a range of other insurances to consider as a sole trader. If you are a tradesperson, you may wish to take out specialist insurance that covers tradies. You will also need to have the right insurance to cover theft of your tools. 

It’s an idea to talk to your AIB insurance broker to that no matter how you structure your business, you have the right cover to protect you from the common risks you face.

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