Small businesses and particularly Sole Traders often have limited resources and are vulnerable to legal complexities in their daily operations, juggling multiple stakeholders. On average, Sole Traders are more likely to fail than any other kind of small business, with 20% of self-employed people packing up their ventures each year. There is a plethora of challenges that face Sole Traders when they start out. Ensuring they have the right cover and protection shouldn’t be one of them.

Despite the freedom that comes with running their own business, they face many risks. They are personally liable for all debts incurred through the business can wipe-out their personal assets. Accessing capital, clients paying outstanding accounts and tax can be challenging due to the company profits and personal income crossover. Along with these risks, Sole Traders juggle operational challenges with financial responsibilities. They are the “go to” for all administrative, insurance and legal matters. Not having the right advice or the right insurance cover can leave their business exposed.

That’s why ARAG Australia (ARAG) have tailored their business legal expense insurance cover, to support Sole Traders across a range of industries. Ensuring they are covered for the things they need, and not paying for the things they don’t - like employment.

According to the Australian Small Business and Family Enterprise Ombudsman 2018 report, 42% of Sole Traders were less likely to seek advice when disagreements occurred compared to larger organisations of which, 75% sought advice. 67% of large businesses were able to resolve disputes without progressing to a formal procedure in comparison to the average of 41% for all businesses. Highlighting the need for Sole Traders to have access to legal advice and representation if a dispute occurs.

ARAG’s legal helpline is available for any initial legal questions or matters providing a first point of contact with a lawyer. Our document centre is also available to all policy holders with many documents that can be adapted and useful for a sole trader.

Some documents available include:
• Terms of Trade / Sale
• Trademark, Letter of Use
• Loan agreement
• Confidentiality Agreements
*Each policy has coverage for up to 2 documents to be reviewed by a legal professional.

Legal expense insurance is a valuable addition to any insurance risk management program, offering affordable legal advice and representation.
For more information please contact ARAG or your insurance broker -

See the full Business Legal Expense Insurance policy wording here.