fbpx

Trade Risk V8 Utes number plates

Many tradies start their self-employed life as a sole trader, but as their business grows, switching to a company is not uncommon.

It can make a lot of sense to go this way.  When you go out on your own for the first time, you never know for sure if things are going to work out.

Why spend thousands on setting up a Pty Ltd company, when you can get up and running as a sole trader with an ABN for virtually nothing?

This is what we find is the case with many tradies who become Trade Risk clients for the first time.

But what happens when you switch to a Pty Ltd?  Is your sole trader insurance now useless?

Thankfully not!

In most cases when you switch from a sole trader to a company, you’ll be able to change your existing Trade Risk policy with minimal fuss.

You will need to let us know of course, but the process is generally quite straightforward provided that the following criteria are met:

  • The same person who was the sole trader is now the sole director of the new company
  • The business activities have not changed
  • There are no pending claims or circumstances that you need to notify us of

Even if you don’t meet the above criteria we should still be able to switch your policy, but it will be a little more complex depending on the situation.

The same applies if you are switching from a partnership to a company.

Provided that the same partners are now the directors of the new company, the change to your business insurance should be very straightforward and not require a whole new policy.

Is it more expensive to insure a company compared with a sole trader?

This is a common question, but the answer is generally no when it comes to public liability insurance.

Public liability is priced on a number of factors, such as the trade you are undertaking and the size of the business, either by revenue or staff numbers.

Saving Money

So if your business activities are staying the same and the size of your business isn’t changing, there should be no change to the cost of the insurance.

Keep in mind that there may be a small fee to make the change to the policy, but the actual insurance cost shouldn’t jump up.

Whilst on the subject though, it probably is a good time to review the information that we have about your business.

If your business is undertaking different activities, or has grown in terms of staff or revenue, this would be a great time to check that your insurance is up to scratch.

Again this doesn’t mean that you need a whole new policy, but may mean that your existing policy needs to be updated to meet your current needs.

Anything else to do?

If you’re paying your insurance monthly, you should switch your payment source to come out of the new bank account you’ve set up for your company.

Whilst it has no affect on your insurance, your accountant will appreciate it at tax time!

You’ll also need to ensure your licenses are now in your company name.

This is especially true for Qld electrical contractors, where there are very strict rules stating that the name on the licence must match the name on the insurance.

Next step

Call us on 1800 808 800 and our friendly team will help you out.

If you are looking for advice on anything that doesn’t involve your insurance, you’ll need to speak with your accountant.


Switching from sole trader to company

Tradies Love Trade Risk

In 2017 Trade Risk was awarded a Gold Trusted Service Award for the amazing service we offer to thousands of tradies from around Australia.

  • testimonial background
    "Trade Risk make liability insurance so very simple i would definitely recommend them and have done so to other tradies"
    Stephen John McMurtrie | Tradesman Insurance | Lutwyche
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Quick and easy renewal of my insurance for a good price, I couldn't ask for more."
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Great service. Efficient and timely."
    Black Ship Investments Pty Ltd As The Trustee For Alarcon Hernandez Trust | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Good price always respond quickly"
    Renae Ann Bradshaw | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Excellent value for money."
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "excellent, streamlined,"
    Greer Atkinson Trading As Oui Moet | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Good communication and an easy transaction to get the cover I needed"
    Kean As Electrical Pty Ltd | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Best service from Jennifer Steger my account manager. Jennifer sourced me a better deal that suited my business and was cheaper. Would recommend to others and would buy again"
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Haven't had to make a claim but everything else seems easy and straight forward. Cheapest price I could find too, hope that's a good thing??"
    Marius Ionut Nitu T/As Marius Nitu | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "No complaints, quick response happy as"
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "extremely quick service very fast response to questions asked really great a pleasure to do business with"
    Joseph Ripolles | Tradesman Insurance | Alpine
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Always so easy to deal with."
    Scott Anthony Bowden | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "As always, hassle free and easy to deal with. I recommend them to anyone looking for business insurance."
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Was extremely happy with the service very easy and very convenient"
    Probrush Painting Pty Ltd | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Straight forward, easy to follow and then fast service from one of their customer service reps once online forms were completed"
    Cameron Verrills Constructions Pty Limited | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Great service well set up"
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "To many emails, I almost blocked your site because you won't stop emailing me"
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "I purchased a new policy and it was tricky so there were a lot of emails back and forth to make sure I had the correct cover. Cheryl Boyd was super friendly, patient and professional! I really like giving good customer service but I love it when it comes back! I'm really happy with Trade Risk services and staff. Thank you."
    Benjamin Moncrieff T/As Hot Wash Pressure Cleaning | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full