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Business Insurance

Do Sole Proprietors Need Business Insurance?

Truscott Team
July 18, 2026
4 min read

Many sole proprietors assume that because the business is just them, they do not need business insurance. In reality, being a sole proprietor can increase your exposure, because there is no corporate structure between your business and your personal assets.

Why the risk is personal

As a sole proprietor, a claim against your business can reach your personal savings, home, and other assets. A single liability claim or lawsuit could threaten far more than the business itself.

Coverages worth considering

  • General liability: for injury or property damage claims.
  • Professional liability: if you provide advice or services.
  • Commercial property: if you own equipment or inventory.
  • Cyber: if you handle customer data or payments.

The practical reason

Beyond protection, clients and venues frequently require proof of insurance before they will work with you, so coverage can also be what wins you the job.

What Truscott recommends

Start with the risks specific to your work rather than a one-size template. A licensed agent can help you keep it lean. Explore business insurance or start a quote.

Free tools from Truscott

  • Business insurance
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