Start smart › Business structure guide
How your business structure affects your insurance.
Sole trader, partnership, company, trust, your structure changes what you need to insure, how much you’re personally exposed, and what your broker needs to know.
Why structure matters for insurance
- Personal liability — How much risk do you carry personally?
- Policy ownership — To whom the policy is issued.
- Claims exposure — What happens if something goes wrong?
- Compliance requirements — What’s legally required vs. optional.
Common questions
About structure and insurance
I'm a sole trader now, but plan to become a company later. What should I do?
Get sole trader cover now, then notify us when you incorporate. We’ll reissue the policy in the company name. Don’t delay covering just because you’re planning to change the structure.
If I'm a company director, am I personally protected?
Mostly, yes, but not always. Directors can be held personally liable for certain actions (fraud, negligence, breach of duties). That’s why Management Liability/D&O insurance exists.
Do I need to tell my insurer if I change business structure?
Absolutely. If you incorporate or restructure without updating your policy, you may find that you’re not covered when you make a claim.
Can I have insurance in my personal name but trade through a company?
No. The policy must match your legal trading entity. If you trade as a company, the policy must be issued in the company’s name.
I'm not sure what to do next... how do I make sure the insurance matches?
If you’re unsure about the structure you’re using, check your ABN registration or consult your accountant. Then make sure your insurance matches. If you’re planning to change structure, let us know in advance so we can reissue policies without any coverage gaps.
What happens next
Once you’re launched and making sales, your needs will change. As you grow, you’ll add team members, increase revenue, and take on bigger risks. That’s when you move from Start Smart to Scale Strong.
You are here
Just starting out – start smart.
Next step
Scaling your business – scale strong.
Last step
Established and optimising – stay protected.
Ready to stop Googling and start building?
Book a 15-minute call with the Pocket team. We'll have options for you in a few days.