Sole Proprietor Business Insurance
Find out what insurance coverage you need as a sole proprietor.
Compare policies from leading national insurers. Get a quote in minutes.
What type of business do you want to insure?
One application, multiple quotes. All in one place.
Over 1 million customers worldwide.
Buy instantly online.
Written by
Why Do Sole Proprietors Need Insurance?
Sole proprietorship brings real independence — and sometimes real exposure. As the owner, your business and personal assets aren’t separate, and one unexpected mishap can put all your hard work at risk. With tailored coverage options, we make it easy and affordable to protect your personal finances from business-related claims.
What Type of Sole Proprietor Business Insurance Do I Need?
General Liability Insurance
From
$20.75
/month*
Foundational sole proprietor insurance coverage to help handle costs from third-party accidents, property damage, and bodily injury.
Workers’ Comp Insurance
From
$38.91
/month*
Coverage to help take care of employees who get sick or injured on the job. Most states require this coverage for small businesses with full- or part-time employees. It also can benefit business owners who don’t have employees.
Inland Marine Insurance
From
$20.83
/month†
Financially protect the tools and equipment you use while in transport or on a jobsite.
Professional Liability Insurance
From
$25.83
/month*
Coverage for business mistakes that result in damages, legal costs, and negligence claims.
Business insurance —
a quick explainer
Learn more about policies for small businesses, what they cover, why you might need them, and how we can help – all in just 60 seconds.
Business insurance is often made up of different types of policies to cover different things, similar to how your health insurance can be made up of medical dental and vision coverage. Here are some of the ones small business owners need. General liability is kind of the Swiss army knife of insurance. It can do a lot, like help handle costs from third party accidents, property damage, bodily injury, and more. Nobody’s perfect, right? That’s what professional liability is for. It could come in handy in the event of honest mistakes or claims of negligence. Workers’ comp can protect your business and help take care of employees who get sick or injured on the job. Small businesses are big targets for cyber criminals. Cyber Insurance can help cover costs associated with stolen customer data, cyber attacks, breaches, and fraud. BOP or a business owners policy combines different types of coverages like general liability and commercial property insurance. Putting them together for you is where we come in. You tell us a bit about your business online or on the phone, and we customize the coverage options for what you do and what you need. It’s your business, it should be your insurance as well. That’s why we’re here.
What Does Sole Proprietorship Insurance Cover?
Whether you’re a mobile notary visiting clients or a painting contractor on a job site, operating as a sole proprietor means you are personally liable for business damages. And many landlords and clients now require proof of coverage before you can sign a lease or start a contract. From high-risk trades to online retail, our insurance solutions can help you navigate these requirements and common claims without derailing your busy schedule — or your budget:
A painting contractor is shifting a ladder to clear space near the entryway. One accidental bump, and a heavy framed mirror tips off the wall, shattering on a client’s marble floor. A general liability policy can help cover this type of third-party damage and protect your business from out-of-pocket costs.
A mobile notary witnesses a signature for a real estate document but misses a key detail in the sealing process. The paperwork gets challenged, and the client ends up in a time-consuming and expensive legal dispute. Even careful professionals can have an off day, and a professional liability policy could help cover the cost of resolving a claim and protect you against related legal expenses.
Picture your janitorial team cleaning a commercial office after hours. While mopping a slick hallway, one crew member slips and sustains a serious back injury that requires months of rehab and rest.
Workers’ compensation insurance can help cover the medical bills and lost wages. That’s why even if you’re a one-person operation, workers’ comp is worth considering, since some health insurance policies don’t cover work-related injuries.
An online retailer keeps their inventory in an off-site storage unit while orders grow. But when the water heater bursts, the products needed for this week’s shipments are ruined. Inland marine insurance — also known as contractor’s small tools and equipment insurance — can help cover the cost to replace your inventory so you can restock and get back to business.
How Much Does Sole Proprietorship Insurance Cost?
Try our sole proprietorship insurance Calculator
Get a quick estimate in just 3 steps.
How Much Does Sole Proprietorship Insurance Cost?
Try our sole proprietorship insurance Calculator
Get a quick estimate in just 3 steps.
Answers to More Sole Proprietorship Insurance Questions
Most states require you to carry workers’ compensation insurance if you have employees. There also may be licensing requirements for certain liability coverages. We recommend checking with your state and local governments for sole proprietorship insurance requirements.
Sole proprietorship insurance is a collection of policies that sole proprietors typically purchase.
If you’re thinking of buying sole proprietorship insurance, we recommend having the following information on hand when using our sole proprietorship insurance calculator:
- The state where you do business
- Your type of business or trade
- Your annual revenue estimates
This information can make it easier to get a quote from one of our insurers.
In most cases, yes. Since insurance is considered a necessary cost of doing business, the IRS generally allows you to deduct your premiums, but be sure to double-check with a tax professional for your specific situation.
The cost for your insurance coverage is determined by:
- The type of work you do
- Where your business is located
- Your annual revenue
- The types of policies and limits you choose
Other factors can include your claims history and how long you’ve been in business.
Even if you’re a team of one, the answer is usually yes. Without a legal wall between your personal and business finances, one accident could put your personal assets at risk. And many landlords and clients require a Certificate of Insurance (COI) before you can sign a lease or a contract.
An LLC (Limited Liability Company) provides a legal layer of protection for your personal assets, but as a sole proprietor, you’re personally responsible for all business mishaps. While the types of insurance are often the same for both, sole proprietors rely on insurance as their primary defense against personal financial loss.
Small business insurance is what we do. Whether it’s covering you for accidents and errors, meeting workers’ comp requirements, or protecting your shop and your tools and equipment, we can help find the coverage you need for your sole proprietorship business.
We provide customized coverage options and quotes from top-rated small business insurers — all in just 10 minutes. More than 1 million small business owners worldwide trust us with their insurance, and we consistently earn high customer ratings and reviews.
Written by
Our +1 million customers are big fans. And you will be too.
I went online, looked around, and found Simply Business. The process was so seamless. I got my certificate within minutes. It was just phenomenal.
Karen
Owner of Tangaza Bath & Body Studio LLC
With Simply Business I know I can look at different carriers, but also see all my stuff in the same place… a lot of [insurance] providers don’t offer a variety of coverage, all in one place.
Jef
Owner of Bunker83 LLC
It wasn’t overwhelming to figure out what was covered and what wasn’t covered. And the cost was competitive.
Kim
Owner of Room to Breathe Professional Organizing
Feel confident in your choice.
We partner with a range of top-rated carriers and use smart technology to match you with policies that fit your specific business, your risks, and budget.
400+
business types covered
1M+
customers worldwide
18
top-rated carriers
We’ve Got More Helpful Information
*The displayed price for each product is a monthly estimate calculated from the 10th percentile of relevant policies sold by Simply Business (e.g., General Liability data is used for General Liability estimates). This estimate uses data from relevant policy sales between July–December 2025. Final price and payment terms, which may include an initial down payment, are subject to change based on your state, selected insurance provider, and specific business details.
‡ Displayed price is based on the lowest available coverage limit for Equipment and Small Tools policies.
Page last updated: