Step 7 of 13
Get business insurance
Protects you personally if something goes wrong.
- Time
- 1–2 hours
- Cost
- Varies
Why it matters
As a sole proprietor you are personally liable. Insurance is what stands between a problem with a product and your own savings.
What to ask for
- General liability
- Product liability, which covers claims about the products you sell
- Whether your home insurance covers a home-based business and its stock
Say what you sell
Tell every insurer exactly what you sell. Some policies exclude certain product types, and you want to find that out before you buy a policy, not when you make a claim. Get confirmation in writing.