Can sole proprietors get general liability insurance?


Editorial team Published on

Yes, sole proprietors can get general liability insurance. You do not need to form a formal business structure like an LLC or corporation to purchase a policy.

What General Liability Insurance Covers for Sole Proprietors

  • Third-Party Bodily Injury: Pays for medical bills or legal fees if a client or visitor is accidentally hurt while interacting with your business.
  • Property Damage: Covers the cost to repair or replace someone else’s property if you or your work damages it (for example, spilling paint on a client’s carpet).
  • Advertising Injury: Protects against claims of copyright infringement, libel, or slander in your marketing materials.
  • Legal Defense Costs: Helps pay for attorney fees, court costs, and settlements if you are sued.

Why Sole Proprietors Need It

  • No Legal Separation: As a sole proprietor, there is no legal separation between you and your business, meaning personal assets (like your home or savings) are at risk if you face a lawsuit.
  • Client Requirements: Many clients, landlords, or licensing boards require you to show proof of general liability coverage before signing a contract or renting a workspace.