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Flying Accountant online
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Hello BrightBiz

I run an accounting firm and am well qualified to comment.

Please dont take anything as advice – you need to consult with your accountant on your own situation – but this is a general comment.

It sounds as though you are operating through a Pty Ltd company of which you may be a Director, Shareholder and Employee.

If you are paid directors fees or a salary by the company, then the company is required to hold a workcover policy. This covers you in the event you are injured at work while performing your job or travelling to and from work. It is compulsory and you must have it by law. A good place to start is the work cover authority of Victoria – do a google on them and you will get all the information you need. The policy charge depends on many things such as the industry in which you work and its injury claim history, type of work being undertaken – manual or clerical etc.

Professional Indemnity is taken out by the company as insurance against anything that you do wrong whilst giving advice to your clients etc. If you advidsed a client on a particular matter and your advice was wrong, you could be sued. Your PI policy will cover this. It is a very specific are of insuranace and you need to speak to a licensed insurance broker qualified in the area of giving advice on the type of insurance you need.

The other type of insurance you might think about is Directors and Officers insurance – this insurance covers you as a Director of your company. Keep in mind that any claim brought against you for wrong doing would first be mounted against the Company in its own legal right and then you as a Director. Again your insurance agent can talk to you about this.

Welcome to the world of business – there are many complex issues that you need to consider and it is really imperitative that you get a good accountant and good lawyer to guide you through the maze.

Hope this helps