Sole Propietorship Insurance

[graemew]

Does anyone have any insight into getting insurance for a sole propietorship business to help reduce the risk of lost personal assets if sued? Perhaps General Liability Insurance or Service Liabaility Insurance.

[dutchca]

No type of insurance can insulate you from being sued and personal assets being put at risk in a sole proprietorship. Unlimited liability is part of the definition of a sole proprietorship.

If you are in a high risk profession, if may be worthwhile to incorporate.

I don't think general liability insurance has anything to do with getting sued.

[holzwo]

Does anyone have any insight into getting insurance for a sole propietorship business to help reduce the risk of lost personal assets if sued? Perhaps General Liability Insurance or Service Liabaility Insurance.

What do you do? I am a sole proprietor working out of home studio and get 2 mill liab for like $100 a year under what my agent calls "home business Package" but I know it depends on what you do.
Cheapest I found not under a home was $1000 a year but well worth it. I had a friend who caused a fire while catering and is in court pretty much bankrupt. Damn lawyers. Everyone sues everyone so you need to protect your self

[MoreMiles]

Your friend causes the fire, yet its the lawyers that are blamed. :lol:

That's like blaming doctors for one's heart attack, or cops for catching you speeding!

...except the cops don't get a share of your ticket fine and doctors don't gte a share of your extended life expectancy

... your lawyer does :lol:

[graemew]

What do you do? I am a sole proprietor working out of home studio and get 2 mill liab for like $100 a year under what my agent calls "home business Package" but I know it depends on what you do.
Cheapest I found not under a home was $1000 a year but well worth it. I had a friend who caused a fire while catering and is in court pretty much bankrupt. Damn lawyers. Everyone sues everyone so you need to protect your self

I would be doing all my work at home. Living in my mom's home for the first little while, which is one of the main reasons for this. I really don't know much about this area, so please bear with me.

My business is a side-drafting business with just my brother and I, and we haven't officially started yet. I don't expect much in terms of revenues or expenses, perhaps a couple thousand a year. However, the drawings that we are making could get us sued if we screw something up. Theses drawings could be used in the oilfield, for example, where if something breaks and someone dies it could fall back on us. That is why I am just looking into the feasability and cost vs. reward analyses of this. Thanks!

[holzwo]

I would be doing all my work at home. Living in my mom's home for the first little while, which is one of the main reasons for this. I really don't know much about this area, so please bear with me.

My business is a side-drafting business with just my brother and I, and we haven't officially started yet. I don't expect much in terms of revenues or expenses, perhaps a couple thousand a year. However, the drawings that we are making could get us sued if we screw something up. Theses drawings could be used in the oilfield, for example, where if something breaks and someone dies it could fall back on us. That is why I am just looking into the feasability and cost vs. reward analyses of this. Thanks!

I would check with your moms insurance broker. a Word of warning is that if you tell them you are currently operating this business they may force you to have insurance or cancel your home policy. I know when I said it to my home insurer that we were operating a business out of the home if we did not get insurance for the business from somewhere(whether it was with them or elsewhere)they would cancell my home policy.
The explanation why they would need to cancel is they may be on the hook for a slip and fall anyways and without someone covering the business liability they would have to cancel.

[graemew]

I would check with your moms insurance broker. a Word of warning is that if you tell them you are currently operating this business they may force you to have insurance or cancel your home policy. I know when I said it to my home insurer that we were operating a business out of the home if we did not get insurance for the business from somewhere(whether it was with them or elsewhere)they would cancell my home policy.
The explanation why they would need to cancel is they may be on the hook for a slip and fall anyways and without someone covering the business liability they would have to cancel.

Thanks for the reply. What did you end up doing? Are there are insurance companies you could suggest?

[Wongdoe]

Couldn't you incorporate? If you do a search online, there are some do it yourself services where they offer blank templates of info needed and you fill in the blanks. Then you pay, and they file the paper work and send you a copy.

Would this be useful??? Or does anyone know of any repurcussions???

[graemew]

I could incorporate, however, at this point I am looking at the alternatives.

[holzwo]

Thanks for the reply. What did you end up doing? Are there are insurance companies you could suggest?

I insured under my home. My insurer is the cooperators. I am not sure if they can help as I know there was specific criteria. We are a photo studio which appearantly was acceptable to them.