Does a Sole Proprietorship Still Need Commercial Insurance?

Commercial insurance is an important consideration for any business in Lansdale, PA. A sole proprietorship has insurance concerns that aren’t quite like those of other businesses. Here’s how a Farrell Insurance Associate Inc. commercial insurance policy can still benefit you if you’re a sole proprietorship.

You Are Your Business and Your Business is You

A sole proprietorship has no real separation between you and the business. That means you are the business, and that comes with many things for you to consider.

If your business causes any damage or injury to someone, that person will likely try to sue the business. Since you have no separation from your business, that party will sue you personally. Can you handle a lawsuit out of pocket?

Even if the person suing you loses in the end, you can spend a tremendous amount of money defending yourself and your business. This is why a sole proprietorship needs commercial insurance, possibly even more than many other types of businesses.

Your Business Will Dictate Your Insurance Needs

What does your business entail? No matter what you do, you create some risk that you need to insure against. Even if your business is nothing more than you and a laptop in the basement of your home, you will need at least some coverage for liability and some coverage to protect your business property.

If you use your car for any business related activities, you will need to consider coverage for those activities as well. If you’re a freelancer, then professional liability insurance can often become a necessity. Sometimes, businesses won’t hire freelancers who don’t have professional liability insurance.

Does the scope of your business include activities with government oversight, such as preparing food? You may need commercial insurance just to do certain types of business legally.

For all these reasons and more, a sole proprietorship should seriously consider commercial insurance in Lansdale, PA. Contact Farrell Insurance Associate Inc. today to find a commercial insurance package suitable for your sole proprietorship.