As a self-employed individual, you are the owner and operator of the entire business. You are the sole proprietor and are responsible for decision-making, receiving profits, and answering the claims.
Since it is an unincorporated business, your personal property and assets are vulnerable as you don’t assume a separate legal status. You need to protect yourself from all the risks with adequate insurance.
Before you jump into risk management strategies, it is better to get business insurance quotes online. Compare plans and choose one that offers you freedom, flexibility, and peace of mind.
Type of Insurance Depends on the Business
The kind of business you own decides what sole proprietorship insurance you need and the premium. If your work heavily relies on digital technology and computers, you need cyber liability and equipment breakdown insurance.
For creators of original content, a media professional liability insurance policy is advisable. On the other hand, professionals and consultants need errors &omissions insurance, also called professional liability insurance.
Below are the most commonly purchased insurance products by small business owners and self-employed people:
Cyber Liability Insurance
Phishing emails and spam calls have become commonplace for businesses and individuals. Cybercriminals are everywhere, and no business is too small for them to attack.
You should constantly be on the lookout for suspicious account activity. Still, there is a chance that data breaches, identity theft, ransomware, extortion, and corruption of sensitive files can happen.
Getting a sole proprietorship insurance policy with cyber liability coverage as an add-on can help you get back on track after such cyberattacks.
Commercial Property Insurance
Small business owners sometimes start their operations in their homes or garage and expand later. Your home insurance won’t cover the damages to office supplies, computers, copiers, and other things related to the business.
So, even if you work out of your home, you must include commercial property insurance as part of your loss prevention plan.
This sole proprietorship insurance will protect your home and business equipment in the case of perils. Natural causes like a flood or manual errors like sewage backup can cause the destruction of property. Other types of coverage are for fire, theft, vandalism, etc.
Commercial Auto Insurance
Similar to the above type of coverage, you will need auto insurance if you use a vehicle for business purposes.
Your regular auto insurance policy may downright be rejected if your car sustains damages during business-related driving. In such circumstances, you will remain unprotected if you get involved in an auto collision.
Commercial auto insurance covers all incidents during your business commutes, such as visiting a client, buying inventory, or performing site inspections.
General Liability Insurance
Commercial general liability (CGL) insurance coverage is something that businesses of all sizes and types have. No matter if it is an LLC, corporation, or sole proprietorship, general liability policies protect businesses from all kinds of lawsuits.
Your CGL covers legal claims arising from false advertising, defective products, property damage, bodily injuries, and more.
When the court awards the claimant a settlement, your policy compensates it. You won’t lose your assets as the coverage also includes legal costs.
Your services or products are different from others and may need specialized coverage. It is crucial to compare business insurance quotes online and rates.