Become a Virtual Assistant in Australia
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virtual assistant insurance

Do Virtual Assistants Need Insurance?

Virtual Assistant Insurance Options – Part 1

All businesses that operate in Australia are strongly advised to have at the very minimum public liability insurance.  The Australian Government’s small business website defines this as:

insurance_for_virtual_assistants

If you look at the examples above, points 2 and 5 seem to be the most relevant to virtual assistants.

  1. Negligent Advice – this can apply to a wide range of areas where virtual assistants give advice to their clients on items such as what technology to use, what services to outsource to (other than themselves), what systems or back up systems to put in place.  These then fail and the client then expects the Virtual Assistant to compensate them.
  2. Pure economic loss – this can be applied to any documents that you might be working on with an expected deadline.  The virtual assistant misses that deadline and because of that the client then doesn’t win that expected work or bid or tender costing the business work and income.

The other part of insurance is making sure that the policy covers you for defending a claim.  You may not have done anything wrong and feel that should you defend the claim you would not be found liable.  However, guilty or not, the cost of defending the claim can be substantial so make sure your coverage includes this.

Definition of an Independent Contractor in Australia

One of the items that the Australian Tax Office considers is whether you have business insurance or not.  So while you may not need PL Insurance cover for clients, you may need it to be considered a small business owner or independent contractor for taxation purposes.

What is the Cost of Public Liability Insurance

My advice is to shop around and go to some of the comparison websites to check out what is available.  No, you can’t use your household public liability insurance for your business without advising the insurer.  You may also need business equipment insurance.  Do your due diligence, google it and then ask around for recommendations.