For those who want to run their own business in the simplest way possible, a sole proprietorship is a popular way to go. With a sole proprietorship, there is no legal distinction between you and your business, which means you don’t have to worry about complex organizational structures, and your taxes will be more straight forward than they are with other business types.
You can still give your business a name if you want, though you don’t have to.
What you should do, however, is create some separation between your personal and business life. A great first step is to setup a business banking account to make expense tracking easier. Once that’s in place, you’ll want to get some form of business insurance.
Since a sole proprietorship isn’t a legal entity, any suits, fines, charges, etc. spill directly into your personal life and assets. Business insurance can help protect your personal possessions and finances.
The exact type of policy you get depends on what your business does.
If you’re receiving money in exchange for services, you need general liability insurance. This will protect you from lawsuits, injury claims, accidents resulting from your business, and more. Too many sole proprietors make the mistake of thinking they’re too small to be sued or filed against. This is simply not true. If anything, a small business or sole proprietorship is easier to sue than a larger company.
If you’re creating and/or selling products, you will want to consider product liability insurance. Similar to general liability, product liability provides coverage for lawsuits, injuries, and accidents involving the product you’re selling.
This is especially important for products that involve electricity, as well as food/supplement products. If there’s any chance a person could suffer injury from the product you’re offering, you need product liability insurance.
Additional Policies to Consider
There are many different types of business insurance policies available. If you’re using a vehicle for your business, you may want commercial vehicle insurance. While most sole proprietors don’t have a dedicated building for their business, those who do will want business property insurance. This can be combined with general liability (and other add-ons) to create a BOP (business owner’s policy).
With all the options out there, it can be a little tricky to navigate. Thankfully, there is an easy solution for finding the right business insurance at an affordable price.
Making Sole Proprietor Insurance Simple
The best way to ensure you’re properly insured is to work with an insurance agent that’s experienced with business policies. Not only will they be able to make sure you have the coverage you need, but they’ll shop around to different providers so that you get the best price available.
For business insurance in Springfield, Ohio and the surrounding communities, contact Link-Hellmuth today.