Small Business? Sole-Proprietor Business Insurance Options

Posted on: 4 April 2022

Just because you operate a small, sole-proprietor business does not mean you can forego the proper insurance. If you are unsure of where to start, contact a commercial insurance agent and ask about a business owner's policy (BOP). This type of policy starts with coverage for any property the business owns (which is besides real estate can include items such as computers, machinery, inventory, and any other items needed to run the business,) and also allows for some liability should someone be injured due to your business operations. However, it is best to sit down with the agent and discuss your business. Knowing what type of business you operate helps the agent discuss the different types of coverage you need to consider. Here are a few of the common coverages for a small business.


While the BOP does insure your business property, it is a bit limited. You may not own property but rent a building that needs coverage. It is also possible you have different machines to manufacture the products you sell, expensive high-tech equipment, tools of the trade, or inventory already made or the materials to do so. The more specific you are with your property, the better coverage you will have in case of theft, natural disaster, or an accident.


General liability will protect you if someone is injured while doing business with you. If they were to fall while at your location, this insurance will protect you. However, if you create products for sale, it is possible for a customer to get hurt or sick while using the item. This is where product liability comes into play. If your business is service-related, a customer may not be happy with the outcome, or perhaps you were not able to complete the work on time and it caused them emotional or financial harm. There is coverage for professional liability that will take care of these issues.

Business Auto Insurance

If you use your vehicle for work, you should have insurance to cover any accidents you are involved in while working. Many regular car insurance policies will not cover you if they find out you were working when the accident occurred.

A business insurance agent will go over all the possible scenarios that can happen when you own a business. Make sure you are covered on every front. Should you end up hiring help, be sure to add worker's compensation coverage as well as coverage for employment practices in case an employee tries to sue you.