3 Reasons Sole Proprietors Should Buy Business Insurance

Unfortunately, far too many sole proprietors neglect the need to purchase business insurance. This is especially true of proprietors who operate their business out of their home. If you are currently among these small business owners, you will want to rethink your decision not to purchase commercial insurance. Continue reading to learn more about the three reasons why all sole proprietors should have business insurance.

Reason #1: Protect Your Business Assets

No matter how careful you may be, there is always a chance that something could go wrong on the job. There is the potential that someone can get hurt, or property can be damaged. If either of these things were to happen, you could risk losing your business assets as the result of a lawsuit. Since most sole proprietors operate on a rather small scale, even a single lawsuit could be enough to put you out of business. Purchasing business insurance will help you to protect your business assets since your insurance carrier will be responsible for covering the cost of any claims filed against your policy.

Reason #2: Protect Your Personal Assets

In the event that your business faces a lawsuit as the result of a personal injury or property damage claim, it is not only your business assets that may be at risk. In addition to going after your business assets to fulfill a judgement against you, the court can also go after your personal assets. This is because in the eyes of the law, you and your business are one in the same unless you have taken steps to form a limited liability corporation or have chosen to incorporate your business. This means that both your business assets and your personal assets can be seized in order to pay a business debt. Purchasing business insurance will allow you to protect all of these assets by ensuring you have the coverage necessary to cover any damage that may result from an on-the-job accident.

Reason #3: Make Your Business More Competitive

One of the reasons that many consumers feel more comfortable working with larger companies is that these companies are fully licensed and insured. This provides a peace of mind for the customer that if anything goes wrong on the job they will not be held personally liable. Choosing to purchase business insurance will allow you to provide this same peace of mind and ultimately become more competitive in your area of business.

For more information on getting the business insurance that is right for you, contact an insurance specialist today.