Business Insurance for Your Sole Proprietorship
As a business owner, you are exposed to risks that should be managed and reduced. Insurance will cover you against most risks. Reasons to consider insurance if you are a sole proprietor include:
· Unlimited liability; your personal and business assets are at risk in case of court judgments.
· Will your business survive if the owner dies or is injured?
· Are you prepared for the general risks associated with business operations, such as vandalism, theft, collision, or injury
Types of Business Insurance At-A-Glance
Insurance That Covers the Business in Case of Injury or Death of the Owner
- Business Interruption Insurance protects against the loss of projected earnings due to a temporary shutdown of the business.
- Health Insurance protects the owner of a business in case of illness by providing payment for medical expenses.
- Disability Insurance helps if you become disabled and cannot work; this will cover your personal income.
- Business Life Insurance (Key Person) covers against the death of a participant in the business.
Insurance That Covers Against Business Operating Risks
- Property and Casualty Insurance covers property loss from fire, smoke, theft, collision, explosion, and vandalism.
- Auto Insurance protects against injury and the cost of repairing the vehicle.
- A Business Owner’s Policy covers multiple risks; this policy has restrictions regarding the size of the business.
Necessary Insurance If You Have Employees
- Unemployment Insurance is for workers who become unemployed through no fault of their own.
- Worker’s Compensation and Disability Insurance covers an employee’s loss of income and medical expenses through job-related accidents.
- Employment Practices Liability provides an employer with protection against lawsuits regarding employee treatment, such as sexual harassment and discrimination.
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