Income Protection Insurance Sole Trader

Income protection insurance provides similar protection to workers compensation.

Income protection insurance sole trader. Why do sole traders need insurance. Many of the larger worksites and building companies have mandatory income protection requirements for all tradesmen working as sole traders and subcontractors. However income protection is a 24 7 insurance policy which covers tradesmen if they fall off a ladder at home hurt themselves kicking the footy with their kids or are stricken by serious illness. Income protection to fill the gap of workers compensation personal accident insurance workers compensation for your.

Generally there are two main reasons why sole traders buy insurance. Other forms of insurance that sole trader tradies may want to consider include tool insurance life insurance trauma and tpd insurance. Although as a sole trader you are not legally required to take out income protection insurance. This is because sole traders generally don t have sick leave or workers compensation.

Types of insurance for sole traders income protection. The short answer is yes. Income protection for extra protection. Sole traders are allowed to receive income protection insurance.

With that being said it is highly recommended you do. If the business fails with outstanding debts not only will you lose your income you could also lose your home and face bankruptcy. Only for your employees. Understanding how and when to go about taking out income protection insurance whether as a sole trader or a small start up company is an important aspect of protecting yourself against any unforeseen circumstances.

Covers a proportion of your salary whilst you are unemployed or unable to work.