When you’re a solo entrepreneur or freelancer, it’s easy to assume that business insurance isn’t necessary—after all, you don’t have employees, a storefront, or a large inventory to protect. But here’s the reality: even solo business owners face risks that insurance can help cover.
Let’s break down why business insurance might still be a smart (and affordable) investment for your one-person operation.
1. You Can Still Be Sued
Just because you don’t have a team doesn’t mean you’re shielded from lawsuits. Whether you’re a consultant, contractor, designer, or home-based business owner, you could be held legally responsible if:
- A client claims you gave bad advice that cost them money
- Someone slips and falls visiting your workspace
- A project doesn’t meet expectations and results in a financial loss
Professional liability insurance and general liability insurance can help cover legal costs, settlements, and judgments—so one mistake doesn’t drain your bank account.
2. Your Equipment and Inventory Still Matter
Do you use a computer, camera, tools, or store products in your home or a storage unit? Property insurance or a Business Owner’s Policy (BOP) can protect your business assets from fire, theft, or natural disasters.
Note: Homeowners insurance usually doesn’t cover business equipment, so don’t assume you’re already protected.
3. Clients May Require It
Want to land that big contract? Some clients—especially in industries like tech, construction, or consulting—require proof of insurance before signing off on a deal. Having the right policy can give you a competitive edge and boost your credibility.
4. If You Drive for Work, You Might Need Commercial Auto
Using your car for deliveries, meetings, or transporting tools? Your personal auto insurance probably won’t cover an accident that happens while you’re working. Commercial auto insurance can fill the gap.
5. Cyberattacks Don’t Discriminate by Business Size
If you store customer information, take online payments, or rely on a website or digital tools, consider cyber liability insurance. It covers things like data breaches, ransomware attacks, and legal fees related to compromised information.
Bottom Line: Insurance Isn’t Just for Big Businesses
Even without employees, your business has value—and vulnerabilities. The right insurance plan protects you from the unexpected and ensures your dream doesn’t get derailed by a single incident.
Not sure where to start? At Eugene C. Yates Insurance Agency, we specialize in helping small business owners in Sacramento find tailored, affordable insurance solutions. Contact us today for a free quote and expert guidance.