LLC Insurance

Sole Proprietorship Insurance: Protection While You’re Working Solo

As a sole proprietor, you’re used to doing things on your own. From dealing with customers to tracking every expense, you’ve built a successful business by yourself — and you like it that way.

But there’s one thing you shouldn’t do on your own: manage all the potential risks that you’re exposed to as a sole proprietor.

That’s where we come in.

Here at Simply Business, we work with insurers to provide business insurance options for sole proprietors like you. From general liability coverage to professional liability insurance, our policy options are tailored to cover the biggest risks you may face in your business.

Best of all? We make it easy to get insured, because let’s face it — you’ve got enough on your plate. Simply complete our online form to compare free sole proprietorship insurance quotes in less than 10 minutes.

Ready to get covered?

Policies Available for LLC Insurance:

• General liability insurance
• Professional liability insurance
• Workers compensation

Benefits:

• It can protect your business if certain claims arise.
• If you’re accused of negligence, insurance can help cover you.
• You can request proof of insurance, which positions your business as trustworthy.
• You may be required to get insurance, depending on where you work.

What Type of Business Insurance Do I Need as an Owner of an LLC?

It depends on the type of business you own. After all, there are many different types of LLCs—from accounting firms and to general contracting companies, to bakeries and photographers.

At Simply Business, we know insurance can be confusing. That’s why we’re here. Our licensed insurance agents work tirelessly to help you get the right coverage, as well as answer any questions you might have about your policy.

LLC companies should consider getting the following insurance policies:

General Liability Insurance

General liability (GL) insurance is often a good choice for LLCs that interact with customers and vendors. That’s because this policy can help cover the costs associated with third-party accidents, injuries, and even damage to property. It’s one of the most important (and popular) policies to get.

Here’s how GL insurance can work. Let’s say you own a landscaping business, and you’re mowing a resident’s lawn, when a rock gets hit by your mower and breaks the homeowner’s window. Unfortunately, the window is custom-made, meaning it’s very costly to replace. Plus, your business is on the hook to pay for the damage.

Or maybe you’re a cosmetologist who specializes in skincare treatments. Unexpectedly, one of your customers gets an allergic reaction during a facial and has to go to the emergency room. Following the incident, your customer sues you for the costs of her medical bills and emotional distress.

Just one of these incidents could be enough to potentially put you out of business. Especially if property damage or medical bills are coupled with a lawsuit.

Fortunately, general liability insurance is designed to help financially protect your business. It can help cover the costs of claims resulting from property damage, medical bills, and even legal fees (up to your policy’s limit).

General liability insurance can usually cover:

Here’s what general liability insurance usually doesn’t cover:

Professional Liability Insurance

If you own a company that provides services to clients (for example, accounting, financial advising, web design, or copywriting), you’ll probably want to get professional liability insurance.

This type of insurance can likely help protect you if you’re accused of negligence, libel, slander, or even copyright infringement.

Let’s take a look at professional liability protection in action. Imagine you’re a financial adviser who recommends an investment to your clients. A few months later, one of your clients sues you, claiming they’ve lost thousands of dollars due to your poor financial advice.

Whether you’re actually at fault or not, without professional liability insurance, you would have to pay costly legal fees to hire a lawyer and defend yourself.

Professional liability insurance is so important because you never know when you could get sued. Think it could never happen to you? Unfortunately, 43% of small business owners polled reported being involved in a lawsuit or threatened by one.

It makes sense to get professional liability insurance at the get-go. Your policy usually covers:

Professional liability insurance usually doesn’t cover:

Workers Compensation Insurance

Have employees? Yes, even just one worker. Then you probably need to get workers compensation insurance too. This type of policy is usually required by law and can help protect you if an employee gets injured or sick while working for you.

Aside from the legal requirement, getting workers compensation insurance is a good idea anyway. Work injuries are pretty common in the United States - and costly too! In 2018, Americans reported $170.8 billion in workers compensation claims.

If you have workers compensation, your policy can help cover costs associated with:

Workers compensation doesn’t cover everything though, so it’s important to check with your insurer first.

Why Should I Get LLC Insurance?

You may think you’ll never make a mistake, but the reality is, you’re only human. And some incidents are simply out of your control, especially if you have employees working for you.

It’s important to get protection ahead of time, before an event occurs. You’ve already taken steps to protect your personal assets. Now it’s time to protect the business you’ve worked hard to build. Just one mistake can be incredibly costly.

Take a look at the average cost of the most common claims:

• $30,000 for property damage or accident claims
• $50,000 for reputational harm claims (e.g., in cases of slander or libel)
• $20,000 for a customer slip-and-fall case

Can your business cover these costs? If you’re like most small business owners, the answer is no. Just one claim is enough to potentially put many LLCs under water.

Remember, even if you’re sued and it’s not your fault, LLC insurance can help protect you. Unfortunately, lawsuits are more common than ever before. Even your most satisfied customers can turn against you if an unexpected event or injury happens.

When you’re a small business owner, you carry a lot of risk—but you’re not meant to handle it all on your own. Getting LLC insurance is another way of protecting your livelihood for years to come. At Simply Business, we’re here to help you find the right policy with the right amount of coverage for your business.

Limited Liability Company Insurance FAQs

Why Choose Simply Business?

We’re an online insurance platform that’s quickly growing in the industry. We make it easy for small business owners, like you, to quickly compare quotes and secure LLC insurance hassle-free.

Thousands of customers across the nation trust Simply Business to help them find affordable, comprehensive coverage—and they’re usually pleased with the results.

Need more reasons to choose Simply Business?

• We care about small business owners. We have a passion for supporting small business owners. That’s why we offer resources and information to help support your growing business.

• We cut through the jargon. Let’s face it. Insurance can be confusing. We work hard to make our policies easy to understand. Our licensed agents also work with customers to answer questions about their policies.

• We prioritize your time. As a business owner, you have a lot on your plate. To help, we make buying insurance fast and simple. In fact, you can compare free quotes from top insurers in just 10 minutes.

You’ve already taken key steps to separate your personal and business assets. Why stop there? LLC insurance is another key step to help protect your business and everything you’ve worked hard to build.

This content is intended to be used for informational purposes only. It is not intended to provide legal, tax, accounting, investment, or any other form of professional advice.