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Business Insurance Guide for the Self-Employed – Part 4

In the final piece of our Business Insurance for the self-employed guide, we take a look at Personal Accident and Illness insurance and Cyber Liability insurance. We share the ins and outs of why self-employed workers need to consider these forms of cover.

What is Personal Accident and Illness insurance?

Personal Accident and Illness (PA) insurance* covers you for loss of income if you were unable to work as a result of an injury or illness.  The cover is generally available regardless of whether or not you sustain an injury or develop an illness due to your work.

If you were temporarily unable to work due to the accident or illness, your cover could pay you a benefit of up to 85% of your salary.**

What is typically included?* 

  • Loss of income as a result an injury
  • Loss of income as a result of an illness
  • Loss of income as a result of injury or illness (combined)

Optional Extensions can include:

  • Death benefits
  • Disablement benefits
  • Business expenses

What is typically not covered?* 

  • An injury or illness that is the result of:
    • Pre-existing conditions
    • Pregnancy and childbirth
    • An act which is intentional, criminal or caused by you
    • Alcohol or drugs
    • Professional sports
    • Motor sports

Why do self-employed workers need to consider Personal Accident and Illness insurance?

When you are working for yourself, your health and wellbeing are vital. If you were to have an accident or fall ill, the impact on your business and personal financial situation could be disastrous. Here are some things to consider:

  • Self-employed workers are typically not covered by Workers Compensation, leaving you vulnerable if you were unable to work due to a work related accident or illness.
  • Flexible options are available with Personal Accident and Illness insurance, so you can select the limit and waiting period to suit your unique situation.
  • Personal Accident and Illness insurance will typically provide cover for accidents that occur outside of your work .For example, injuring yourself while doing some DIY around the house or playing a game of backyard footy with the kids on the weekend.

Claim example

A self-employed bricklayer tore his bicep muscle while lifting bricks at work. He required surgery and time off work to recover following his injury. His Personal Accident and Illness insurance provided a weekly benefit of $1,700 a week for a period of six months. The total policy benefit paid to the insured was $40,800. This allowed him to recover without worrying about his lost income.

Cyber Liability

What is Cyber Liability insurance?

Cyber Liability insurance* is designed to help protect you from claims and support your profitability in the event of a cyber breach or attack. Costs associated with defending a cyber claim are also covered.

Examples of the types of risks Cyber Liability insurance can assist with are inadvertent loss or release of customer personal information, cyber crime, cyber extortion/ransomware and business interruption due to a cyber event.

What is typically included*?

  • Business interruption costs
  • Investigation and data recovery costs
  • Fines and penalties
  • Extortion costs
  • PR and crisis management costs

What is typically NOT covered*?

  • Replacement equipment
  • Property damage
  • Prior known facts / circumstances (before the policy commenced)
  • Intentional acts

Why do self-employed workers need to consider Cyber Liability insurance?

When it comes to cybercrime, everyone is considered fair game. Whether you’re a doctor with online patient files or run a market stall with an EFTPOS machine, hackers can find opportunities to infiltrate the systems of most professions and occupations.

These are some of the examples of risk situations where a cyber attack could occur:

  • Trading via a website or online platform
  • Communicating via email
  • If you handle or store customer data
  • Use an EFTPOS machine for retail transactions

Want to know more?

Give us a call or jump online to discover a variety of business insurance options to help protect your business. At BizCover we’re all about making insurance easy and hassle-free, providing multiple quotes from some of Australia’s leading insurers in minutes.

 

*As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice. 

**Maximum limits and proof of earning requirements apply

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