Self Employed entrepreneurs know better than most the value of ensuring their small business is insured and protected.
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WHAT IS SOLE PROPRIETOR INSURANCE?
While it can also be important for self-employed people to have independent health insurance to cover things like dental, medical and disability, what we’re talking about in this article is different.
Sole proprietor insurance is a custom small business insurance plan that helps protect freelancers and contractors from a wide range of potential problems such as lawsuits against them, and the damage they cause or even lost income.
WHY DO SELF-EMPLOYED BUSINESS OWNERS NEED INSURANCE?
As any sole proprietor will tell you, it’s all on them.
If you work for a company your decisions and actions are likely already covered by your employer’s liability business insurance but those who work for themselves are not covered the same way.
Take self-employed hairdressers for example. Even if they rent a space within an existing beauty salon, the responsibility of making sure they’re covered in case of a bad reaction to treatment or some other accident with a client is entirely theirs.
WHAT TYPES OF INSURANCE SHOULD SOLE PROPRIETORS HAVE?
Since there is no one size fits all self-employed business insurance plan that is right for every type of business or situation, business owners must choose which insurance options are right for them.
We recommend you speak with your mutual insurance provider to discuss your unique needs, but here are some insurance policy options that we often recommend to most self-employed business owners.
General Liability Insurance
This is a crucial one. Liability insurance for the self-employed is priority 1 for the vast majority of business insurance policies.
Since liability insurance protects owners from claims of physical injury and property damage, it is often the first thing we recommend to our members.
Take a self-employed contractor for example. Liability insurance gets carried with them from job to job and will be there as a safety net in case their work results in an accident that causes an injury to a person or damage to property.
Business Interruption Insurance
Self-employed business owners are often impacted by the same risks and whims that affect other businesses.
When your business is forced to close due to an insured peril (i.e. fire), business interruption insurance can be triggered to cover expenses and can even help replace lost income and profits depending on your situation and policy.
Commercial Auto Insurance
Whether you’re an electrician with a single work van or a cleaning company with a fleet of vehicles, commercial auto insurance can cover you from loss or injury related to business activities while on the road. Theft of equipment which is temporarily stored within the vehicles is not typically covered by an auto policy, so be sure to have a CGL policy that includes your tools and equipment.
Commercial Property Insurance
Depending on the size and type of your building, the cost of commercial property insurance can vary but it’s almost always worth the expense because it can protect you from loss related to fire, vandalism, natural disasters, flood and theft.
Product Liability Insurance
For those small businesses who create and/or sell physical items, product liability insurance is a great addition to any general liability insurance policy because it can help protect you from loss or injury related to a potential product malfunction or defect.
WHAT DOES SOLE PROPRIETOR BUSINESS INSURANCE COST?
Like any small business insurance policy, what those who are self-employed pay for insurance will depend on variables such as the type and size of the business, history of insurance claims, location, deductible limit etc.,
The best way to find out what you’d pay to insure your small business is to get a few different quotes from insurance providers in your area.
Erie Mutual Insurance proudly serves the commercial insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.
Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.
