Business insurance is something that can protect your business and your livelihood. Even if you are a small business owner, it is worth considering the benefits of insurance. You may have a few questions about this type of insurance, and those questions, plus their answers, are as follows.

Do You Need Business Insurance If You Are a Sole Proprietor?

A sole proprietorship is a business that is run out of your home by you and you alone. You may also operate out of rented office space, but you are the entire business. You have no employees or work vehicles to worry about. You are it, the total business.

Ergo, when it comes to insurance for your one-person operation, you may be wondering if it is even worth the expense. That all depends on what your business is.

If you provide and sell products that you have made yourself, the insurance is a good idea in case a customer has a bad reaction and wants to sue. If you provide printed or digital media for other business owners to use on their websites or blogs, then you might not need the insurance because there is very little about what you do that could cause a business any real harm. A risk assessment for your sole proprietorship is a good place to start if you are not sure you need to buy insurance to protect your business. 

Is There Insurance to Protect Loss of Income for Freelancers and Consultants?

There are special types of insurance that protect employees against unintentional and/or unexpected loss of income. However, such insurance policies do not exist for freelancers and consultants. You cannot buy this type of insurance to protect your financial well-being when you are the sole owner and operator of a business. If you decide to become an employee of a company and do the work you do for the company, then you would become eligible for these kinds of employment insurance policies. 

Do You Need Business Insurance When You Operate out of Your Home?

Owning and operating a business out of your own home has its perks. However, your homeowner's insurance only covers the objects in your home office. It will not cover business-related lawsuits or accidents and injuries related to anything you sell.

If your business qualifies for coverage under the terms of a business policy, you may still want to buy a policy when your office exists inside your home. For more information, contact an insurance company such as Welsh Insurance Agency Inc.