Sole Proprietorship Business Insurance

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Tailored Business Insurance for Sole Proprietorships

If you run a sole proprietorship, you need business insurance that’s there for you when you need it most. After all, you may be working solo, but you shouldn’t have to do it alone.

That’s where we come in.

At Simply Business, we build customized policies for sole proprietorships like yours. You’ll get only what you need; no overpaying for coverage that doesn’t apply to your business.

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What Is Sole Proprietorship Business Insurance?

Sole proprietorship insurance is a type of coverage that protects business owners from liabilities like lawsuits and accidents. Sole proprietorship insurance policies can include general liability coverage, especially for service-related businesses.

What Does Sole Proprietorship Business Insurance Cover?

If you get sole proprietorship insurance through Simply Business, we can tailor it to cover your exact needs. That means you’ll get the coverage that’s right for you - that’s the Simply Business promise!

What Business Insurance Coverage Does a Sole Proprietorship Need?

The type of business coverage you might need varies depending on the type of work you do. For example, if you provide customers with professional services, you may need general liability coverage. However, if you sell products, you may not need that coverage.

Don’t worry - we can help you get the right coverage. Here’s what we usually recommend for sole proprietorship insurance requirements:

General Liability Insurance for Sole Proprietors

General liability insurance for sole proprietors - also known as commercial general liability (CGL) or general liability - is a type of policy that covers you from financial and legal claims involving accidents, property damage, and even reputational damage.

As a sole proprietor, there’s no difference between you and the business. That means you and your family could be personally liable for any claims or damages that are brought against your business.

That’s why general liability insurance is so important for sole proprietors!

Here’s what sole proprietorship business insurance could look like in action:

  • Property damage: If you end up accidentally damaging a client’s home or property, your general liability policy can cover the resulting repair costs and/or any legal claims.

  • Accidents: If a client ends up getting office equipment stolen because you didn’t lock up properly, your policy can cover legal claims and damages resulting from this accident.

  • Reputational damage: If you end up saying something slanderous about a customer, you could end up getting sued for reputational damage. If this happens, your general liability insurance can cover the cost of legal claims.

So what’s not typically covered by a general liability insurance policy?

  • Employee injuries and/or sickness
  • Damage to business materials
  • Lawsuits from employees

Learn more about commercial general liability insurance.

Workers Compensation Insurance For Sole Proprietors

If you run a sole proprietorship but have employees or subcontractors on your payroll, you may be required to get workers compensation insurance. This type of policy covers your business in case an employee gets injured or sick on the job. Without workers compensation insurance, you could be personally responsible for an injured employee’s medical bills and expenses.

Workers compensation insurance can protect you if:

  • An employee injuries herself while on the job
  • That employee decides to sue you for that injury

Learn more about workers compensation insurance here.

How Much Does Sole Proprietorship Business Insurance Cost?

Here at Simply Business, we typically base your sole proprietorship business insurance cost on:

  • Your payroll
  • Your location
  • If you provide a product or a service

Want to find out how much your sole proprietorship business insurance might cost?

Click here to answer a couple of questions so we can help you learn how much you can expect to pay for your sole proprietorship business insurance policy.

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