Sole Proprietors, Protect Your Personal Assets with Insurance

If you aren’t previously familiar, a sole proprietorship is an unincorporated business that is only owned by one person. In the United States, anyone can open a sole proprietorship. It is one of the easiest ways to start a company here and makes it a very accessible business endeavor for anyone wishing to start one. There are many upsides to owning a sole proprietorship. For example, you don’t have to have employees unless you want to, you pay yourself directly for the work that you do, and you get to keep all of your profits. However, there are also downsides to this business venture. For example, you have to cover your own health insurance and investment plans. On top of that, you can be solely responsible for injuries or accidents that may occur because of your work. Because of all of this risk, it is very wise to invest in business insurance to protect yourself and your property. The team at Ebensburg Insurance is here today to help you learn about what policies may be right for you and how to approach this choice. 

Protecting Yourself

If you are not properly insured, not only your assets, but also your business’s reputation could be at risk. You may find yourself on the other side of some hefty legal claims and, in the worst case scenario, even filing for bankruptcy. However, if you invest in the proper liability insurance, you can cover yourself and your customer/clients in these situations. 

Commercial Liability Insurance and What it Covers

First and foremost, liability insurance will cover any injuries or property damage that occur on your business premises that result from your work. Commercial liability insurance can also cover medical expenses for customers that are injured on your property if you are selling a product or service in a brick and mortar location. Personal and other related incidents can be covered under advertising claims. These can include copyright infringement, libel, slander, invasions of privacy, and other things that have to do with the intellectual property of your business and others. For almost all businesses, some type of insurance is essential. Usually, the easiest route to go with when you’re first starting out is liability insurance. If you are looking to buy a property of any kind, they may even require you to have some kind of insurance before you can buy. 

Professional Liability and What it Covers

Unfortunately, commercial liability insurance cannot protect you from everything that might happen with your business as a sole proprietor. For example, professional liability is not covered under the commercial umbrella and requires a different kind of insurance. Professional services put you at risk for errors in service to your customers which can result in claims. Under professional liability insurance, your business is protected from things like omissions, negligence, misrepresentations, etc. If you make a mistake that causes a client you are serving financial loss, this would be covered under professional liability insurance. It also helps you pay for fees that result from settlements or legal battles. If you are operating in any industry that has a high level of risk, it may be wise to ask your insurance about an umbrella insurance policy that covers things like employment, pollution, and more. In these cases, umbrella policies end up being cheaper for your business and also increases the coverage you have. 

Property Insurance and What it Covers

Sometimes, if you are running a certain type of business, you may need a commercial property insurance policy. This type of insurance covers your space or lease. This includes things like furniture, inventory, and more. This type of coverage helps you in cases of severe weather or natural disaster. They are usually sold separately or included in an umbrella coverage plan. If you are solely working out of your home or you have a workspace on your home property, you may want to look into homeowner’s insurance instead of commercial property insurance. Usually, if you have a good homeowner’s insurance policy, it will cover you for any business you operate out of your home. If you aren’t sure, talk to your insurance professional and see if you can operate your business from home and remain covered. You may have to add some things to achieve the coverage you need, but your agent can help you figure this out. 

Workers’ Comp as a Sole Proprietor 

If you are a self-employed worker, usually you do not qualify for workers’ comp requirements. That being said, sometimes under a sole proprietorship, you can purchase it for yourself. If this isn’t something you think you need, you can always add disability insurance to your umbrella. Disability insurance will cover you if you are in an accident that renders you disabled and unable to work your business. This is not necessary or required to operate a sole proprietorship, but it can help you in an emergency situation that you may not be expecting. 

Contact Ebensburg Insurance Today for Help With Your Insurance

It can be incredibly difficult to start your own business and figure out all the kinks on your own. Working with an insurance agency that can handle your situation and help you to navigate it can make the process simpler and more approachable. Peace of mind comes when you take the time at the start to do everything right, instead of dealing with it when it comes up. Here at Ebensburg Insurance, we are here to aid you in anything you may need. Just give us a call at 814-472-9557 to schedule your appointment today!