Protection for a sole trader whilst off work for 27 weeks

Cover for a small business owner, ensuring his family and lifestyle experienced minimal financial impact after injury.

At the time, Sean* was a 38 year old electrician. He was married with a wife and two young children.

Sean’s primary employer was a large energy company. However, his goal was to run his own independent electrical business.

Sean started providing private electrical contracting work a couple of afternoons during the week and on weekends. This was on an independent basis and also on a subcontract basis. Sean purchased his own van for his private work. He also took out various insurances to cover his liabilities as a sole trader. Sean was also encouraged to take out Individual Personal Accident & Sickness insurance. Within twelve months, more than 80 per cent of Sean’s income was derived from self-employment, and he was working one day as a casual employee.

Sean was cleaning the gutters on his own house when he slipped and fell. He sustained a significant ankle fracture that required surgery to pin and plate his ankle. His recovery involved being on crutches with an ankle cast for six weeks and a further six weeks walking with a special ankle brace. He was able to return to partial duties involving two days per week after fifteen weeks. He progressively increased his working hours and duties over the following three months. However, it was not until twenty-seven weeks after his initial injury that he properly returned to work.

As Sean’s accident occurred at home, his injury was not covered by workers compensation. Fortunately, when selecting his personal accident and sickness cover Sean had elected to be covered 24/7. Sean had also elected a two week waiting/deferral period.

Sean submitted his claim to AHI and it was promptly assessed. Benefit payments commenced after expiry of the two week waiting period. Sean’s policy also covered him for periods of partial disability and Sean continued to receive income support as he progressively transitioned back to full time unrestricted duties.