Sole Proprietorship Insurance

Customized Protection for Your Sole Proprietorship

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Sole Proprietorship Insurance That’s Made Just for You

If you run a sole proprietorship, you need business insurance that’s there for you when you need it the 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.

What Insurance 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 professional liability coverage. However, if you sell products, you may not need that coverage.

Need more details? Read our FAQs:

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Professional Liability Insurance for Sole Proprietors

Professional Liability insurance - which is also referred to as errors and omissions (E&O) insurance - is a type of policy that provides coverage in the event a customer alleges negligence from your professional services. If your customer decides to sue your sole proprietorship for mistakes related to your services, your professional liability insurance policy may cover damages and legal costs that you might be ordered to pay due to negligence.

Professional liability insurance usually covers:

  • Negligence or alleged negligence
  • Legal defense costs
  • Claims involving libel and/or slander
  • Copyright infringement
  • And more

Professional liability insurance usually does not cover:

  • Intentional negligence
  • Bodily injury
  • Property damage
  • False advertising
  • Patents and trade secrets
  • And more

General Liability Insurance for Sole Proprietors

General Liability insurance - also known as commercial general liability (CGL) - protects your business from third-party claims of bodily injury or damage to someone else’s property. For example, if someone enters your office building, trips over your rug and requires medical attention, general liability may cover the medical costs related to that individual’s injury.

General liability usually covers:

  • Bodily injury
  • Third-party property damage
  • Personal and advertising injury
  • Medical expenses
  • Defense costs
  • Supplemental payments

General liability insurance usually does not cover:

  • Damage to your own property
  • Professional services
  • Workers compensation or injury to own employees
  • Known claims or potential claims

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 themselves while on the job
  • That employee decides to sue you for that injury

Learn more about workers compensation insurance.

How Much Does Sole Proprietorship 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 * Your estimated revenue * And more

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 self-employed business insurance policy.

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