Do Freelancers/Sole Traders Need Liability Insurance?

It's tough out there with the high litigation environment we have in Australia.

We know as a freelancer or sole trader that you really look after your customers.

This is good for business!

It makes sense that you should try and minimise the possibility of risk to your business involving injury, property damage and breach of professional duty involving third parties.

However, sometimes things go wrong. So, it’s best to make sure that you have Liability Insurance in place to protect your business.

So, what can go wrong?

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HAIRDRESSER:

A customer slips and falls on a wet floor in your salon, or there is an adverse reaction to a treatment incorrectly applied.

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DOG GROOMING:

Accidental injury to pets whilst in your care, such as cuts or injuries from pets jumping off tables. Slips and trips by customers visiting your salon. If you are a mobile groomer, accidental damage to client’s property whilst working at their premises.

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RECRUITMENT CONSULTANTS:

Error in placing candidates in positions that they are not suited or don't have the right experience, or failure in doing proper background checks. Also, incorrectly sending a candidate’s CV to a third party without consent.

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CAFE/COFFEE SHOP:

Customers affected by accidental food contamination, or an umbrella in an outside area of the cafe falls and injures a customer.

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PERSONAL TRAINER:

Wrong advice given regarding diet or training plans, or bodily injury to customers whilst training due to poor advice or directions.

Some freelancers think that if I just work from home, I don’t need liability insurance. Your physical liability risk may be low, as clients may not visit your business; however, professional risks could remain high as you are still providing professional advice or service depending on your occupation.

It is also important to know that some insurers may not cover business related claims in their Home & Contents insurance. So, if a delivery driver trips and incurs an injury on your premises whilst delivering a business parcel, you may not have cover.

Sami has created a package for Liability Insurance to protect your business. This package consists of cover for Public & Products Liability to protect you against actions involving third party bodily injury or third-party property damage, and also Professional Indemnity which covers you against legal actions involving breach of your professional duty involving professional advice and service you give to clients/third parties.

Please read our PDS and Policy Wordings to establish if these products are right for you.