What kind of insurance is available for a sole proprietorship?

For a sole proprietorship, there is no single, one-size-fits-all policy that automatically meets all your needs. First, break things down into three areas: business liability, property used in the business, and accident coverage. Only then should you review the coverage options, definitions, limits, and exclusions. This approach makes it easier to discuss coverage and reduces the risk of choosing a product whose scope doesn’t match your actual business operations.

Describe your business in specific terms: what services you provide, where you work, whether you use equipment outside the office, whether you store other people’s belongings, and whether you collaborate with others. Then compare this description with the terms of the contract, rather than relying solely on the product’s name.

Table of contents

  1. Business Liability Insurance
  2. Equipment and Company Property
  3. Workers' Compensation for Business Owners
  4. How to Choose an Insurance Policy
  5. FAQ
  6. The Next Step

Business liability insurance: Don't confuse it with a personal policy

If you provide services, sell products, or perform work at a customer’s location, check whether the contract applies to the activities you actually perform. The InterRisk 2026 General Terms and Conditions for home insurance specify that liability coverage does not include damages related to the conduct of business activities, including damages caused by delivered or manufactured goods, as well as work performed or services rendered. Therefore, a personal insurance policy should not automatically be treated as business liability insurance.

When searching through documents, look not only for the file extension but also for a description of the task. Write down in simple terms what you do, where you work, whether you use other people’s belongings, and whether you delegate some tasks to others. You’ll find helpful questions in a guide to business liability insurance.

Also check the provisions regarding people who assist at the company. Compensa’s General Terms and Conditions 2026 for home insurance specify an exclusion for damages caused to persons employed by or performing work or services for the insured. This is an example of a provision that must be applied to your specific work arrangement, rather than a universal rule applicable to every contract.

⚠️ Important

Personal liability insurance and business liability insurance may have different scopes of coverage. Before you choose a plan, review your services, products, workplace, and business partners.

Company Equipment and Property: The Declaration Matters

Computers, phones, cameras, tools, and home office equipment can be used for both personal and professional purposes. However, this does not automatically mean they are covered. What matters is the description of the property, the location of use, and the terms of the specific policy.

Compensa’s 2026 General Terms and Conditions for home insurance specify exclusions regarding property that is part of a business’s assets, loss of business property, and computer software and data stored on media. Company equipment therefore requires separate review.

Make a list of the items you want to insure. For each item, indicate whether it stays in one place or accompanies you when you’re working with clients, and who owns it. The text also discusses the principles of organizing security when starting a business Business Insurance for New Businesses.

Business Owners' Accident Insurance: Review the Terms and Exclusions

NNW does not replace liability insurance for the customer or equipment coverage. In this area, what matters is the specific clause selected, its definitions, the conditions for coverage, and its limitations. Do not infer the scope of coverage based solely on the acronym or an advertising slogan.

The Compensa 2026 General Terms and Conditions of Accident Insurance describe the benefit for short-term incapacity for work. It requires an uninterrupted period of incapacity lasting at least 14 days, and payments may cover a maximum of 100 days. The document also states that the benefit is not payable if, at the time of the accident, the insured person was not performing work under the specified terms or conducting business activities.

Before making your choice, check the payout terms, the minimum period of disability, the maximum number of days, and all restrictions. For more questions, see the article How to Choose Individual Accident Insurance.

How to Choose an Insurance Policy for a Sole Proprietorship

Start with a list of situations, not with the name of the industry. Consider whether you meet with clients, provide services outside your home or office, store other people’s belongings, use tools on the go, or involve other people. Then match this information with the scope of coverage, coverage amounts, limits, territory, and exclusions.

  • Do you need liability coverage for services, products, or work performed at a client's site?
  • Which items do you want to protect, and where will they be used?
  • Are you considering accident insurance for yourself, and what benefits does the selected provision cover?
  • Does the document clearly describe the individuals involved and the situations that are excluded?

Don't base your decision solely on price. Similar product names don't always mean the same coverage. You'll find helpful additional information regarding individual coverage in the text NNW for adults.

📌 Remember

First, describe the actual work process, and only then determine the scope of coverage. Clarify any ambiguous provisions before signing the contract.

FAQ: Insurance for Sole Proprietorships

Is personal liability insurance sufficient when operating a sole proprietorship?

You shouldn't assume this. The General Terms and Conditions of Insurance may include exclusions for damages related to business activities or a separate liability insurance extension for businesses. Before making a decision, check the definitions and exclusions for the option you've chosen.

Can I insure a computer that is used both at work and at home?

This may be possible if the General Terms and Conditions cover company equipment and the business activity has been declared. Check the coverage limit, location of use, and exclusions. You can find helpful context in A Guide to Business Insurance for New Businesses.

Will a company's liability insurance cover damages involving a person assisting with its operations?

Don’t just accept this at face value. Compensa’s 2026 General Terms and Conditions for home insurance specify an exclusion for damages to persons performing work or providing services for the insured. Each option requires a separate analysis.

Will accident insurance cover the loss of a contract following an accident?

You shouldn't assume that. Accident insurance is tied to the scope of a specific benefit, not to automatic compensation for every consequence of an accident for the company. Check the terms of the clause you've selected.

Is the disability benefit paid indefinitely?

Not in every plan. Under the terms of the Compensa 2026 Accident Insurance policy, the clause in question specifies a minimum of 14 consecutive days of incapacity and a maximum of 100 days of benefits. Make sure you’re reviewing the same plan.

Next step: Describe your business

For sole proprietors, it’s worth taking a separate look at business liability insurance, equipment coverage, and the business owner’s accident insurance. Prepare a description of your services, workplace, property used, and any collaboration with others. Based on this, it will be easier to discuss the scope of coverage and ask specific questions about exclusions.

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