As more people join 37 million business owners in the U.S., they need to consider how they’ll protect their enterprise. It goes beyond a security system or power tools to protect data. They also need to consider protecting themselves, their property, and their reputation.
Commercial insurance is the best way to cover unforeseen liabilities. However, is it needed if you’re a sole proprietor?
Commercial and Business Insurance
Some company owners are confused about the terms commercial and business insurance. In the end, they’re the same. According to the experts at Maanen Insurance Group in Greeley, CO, this form of coverage protects an organization against primary liabilities. These include:
- Bodily injury of yourself or customers
- Property damage to your organization or that of a client
- Reputational harm against you or the company
- Advertising errors
There are additional policies a business can purchase to maximize coverage. For instance, business interruption insurance helps pay for a company’s expenses when there’s a production outage due to a natural disaster, fire, or vandalism. Cyber liability insurance covers a company when its data is damaged or stolen by cybercriminals.
Do Sole Proprietors Need Commercial Insurance?
Unlike someone who creates a limited liability corporation (LLC), sole proprietors are responsible for claims, debts, and potential customer issues. Unlike an LLC, there’s no separation between business and personal assets. Thus, sole proprietors could lose everything if a client or other company sues them.
Hence, a sole proprietor needs to purchase commercial liability insurance. To determine the best options, contact a representative of the Maanen Insurance Group in Greeley, CO for additional information.