If you’re a sole proprietor, then you are the person who both runs the business and is entirely responsible for the business’s performance. It goes without saying that you want to do all you can to protect your commercial assets, and it is business insurance that will provide you with the aid you need.

However, sole proprietors and small business owners might struggle to pinpoint exactly what coverage is right for them. You should commit to working with your agent to optimize your benefits. Here’s how you can do so.

Know the Risks Present in Your Business

Sole proprietors might be freelancers or consultants; they might work from an office space or from the comfort of their own homes. The bottom line is that if you perform a regular service for a wage, without working on the authority of a company, then you are responsible for your own business.

Being a sole proprietor doesn’t mean you work alone however. It is just a term used to define a business that is owned by one person. There are no partners or other parties involved in the deal. However, you might still hire employees and own property. Still, any problems that occur on the job could fall entirely on the shoulders of the sole proprietor.

Here are some examples of damaging situations:

• A piece of important equipment breaks down. You may not have the funds to repair it. Your business cannot run as a result.
• Someone falls on your property. They might even sue you for medical bills. This creates a liability risk. Your standard coverage may not offer enough protection to minimize all risks.
• You have insurance, but lack workers compensation coverage. This puts your employees at risk. You might even be breaking the law by not providing this coverage.
• Someone suffers losses from a service you provide. They sue you. They could lay claim to your personal assets if you do not have adequate business insurance to minimize your risk.
• Your business faces a claim of libel or slander. Maybe your logo looks too much like another company’s. These are instances in which advertising liability insurance can help.

In all these scenarios, your business insurance will help you minimize the blow that these challenges have on your finances. However, it’s important to consider the different assets your business owns, and how they affect your needs for different coverage.

There are many different liabilities present in any business, and there are numerous policies that you might need in order to insure yourself. Your business insurance agent will be the party that will work with you to increase your coverage to your advantage, without overburdening you with unnecessary perks that you realistically might need.