Sole proprietorship insurance

Business insurance for sole proprietors

As a sole proprietor, there’s no distinction between you and your business. Now that’s great when it comes to the profits. They’re yours, and yours alone.

What’s not so great, is the company’s legal responsibilities, debts and losses are solely down to you, too. This means your personal assets are at risk if you get sued. Even if it was something your employee did, not you.

Sole proprietor insurance is the easiest way to protect your home and savings. It takes care of the costs involved with a legal claim. Including medical bills, legal fees and compensation payments due.

And because your business assets also need protecting, insurance for sole proprietors can cover your property, your data and the people who work for you too. Tailor your coverage to suit you.

• Who needs sole proprietorship insurance?

  Do your clients come to your offices? Do you go to theirs? Do you work on-site for clients?

  Then you need general liability insurance for sole proprietors. It takes care of the cost of legal claims if someone slips and falls, injuring themselves on your premises. Or if you damage someone’s property when you’re out and about on business.

  Add property cover to your general liability policy and your own business equipment will be covered too.

  Do you get paid for your advice or services?

  Then you need professional liability insurance for sole proprietors. Because if a client claims you made a mistake and it cost them money, they can sue. In fact, they can sue you for professional negligence even when you’ve done nothing wrong.

  Professional liability insurance (or errors and omissions as it’s also called) can cover the costs of a negligence suit. Including paying for an attorney to defend you, your legal fees and compensation, too.

  Do you have a website? Do you use email? Do you store client data?

  Then you need cyber liability insurance for sole proprietors. Email fraud, phishing and ransomware attacks are on the rise. And with less money for strong cyber defenses, small businesses like yours are easy targets for hackers.

  Cyber insurance gives you the tools and support to recover from an attack. And the money to get you back on your feet again. Fast.

  Do you employ anyone?

  In most states, the minute you hire your first employee, you’re required to have workers’ compensation insurance.

  It’s not a requirement to have employment practices liability insurance, but it’s a good idea. It protects you from the cost of employment-related claims, like discrimination or sexual harassment. And these days, workers know their rights.

• What does sole proprietorship insurance cover?

  There’s a policy covering pretty much everything sole proprietors need.

  General liability insurance covers damage to someone (not you, or an employee) or their property. It can pay for medical bills, repairs and replacement to damaged items, as well as your legal fees and compensation due. You can add coverage to your policy for equipment loss or damage, too.

  Professional liability insurance covers the cost of negligence claims, whether you did something wrong or not. It’s a must-have if you have paying clients. If you get sued, it’ll hire you an attorney, pay your legal fees and compensation if it turns out you’re at fault.

  Cyber liability insurance covers your recovery expenses if you’re hacked. It also gives you the tools and technical support to deal with an attack.

  Workers’ compensation insurance covers the cost of work-place illness or injury claims. Including medical bills and legal expenses if your employee sues you.

  Employment practices liability insurance covers your legal fees and compensation if an employee sues you for discrimination, sexual harassment, or another employment-related claim.

  Not sure which policies you need as a sole proprietor? Get in touch. Our advisors are always happy to help. We’ll make sure you get the coverage that’s right for you. Fast.

• How much does sole proprietorship insurance cost?

  The cost of sole proprietor insurance varies. It depends on things like the industry you’re in, your annual business income and how much coverage you need.

  You can pay in one lump sum, or in quarterly, or monthly, installments. Whichever suits your budget best.

• Do sole proprietors need workers comp insurance?

  Workers’ compensation insurance is a requirement in most states. Even if you only have one employee.

  But it’s a must-have anyway. Because for a small business, the cost of employee workplace injury claims can be crippling.

  For more help with this, read our blog post: Workers compensation for contractors & subcontractors: Who needs it?