How Should “Solopreneurs” Look At Insurance?

There are 33.2 million small businesses in America, totaling over 99% of all businesses registered in the country. Amongst these, there are over 25 million companies that have only one employee. Solopreneurs are making an impact on the economy. These owner-operators manage all aspects of their operations alone, right from sales to service.

The small business sector, as well as solopreneurs, faced numerous difficulties last year. One of the main issues, according to over 53% of them, was inflation. However, approximately 65 percent of small business owners anticipate an improvement in revenue by 2024. Solopreneurs are also concerned about sustainability, as they may need time to prepare for the coming green shift. The need for digital marketing and advertising has increased, and supply chain issues are other problems these businesses have to contend with.

Numerous developments are taking place in technology and market conditions in various business sectors. Also, governments are developing laws and tax exemptions to help small businesses and solopreneurs. Growth needs security to sustain amid these changes.

With so many changes, challenges, and new trends, it is important to understand how to navigate this course while keeping track of the profits and safety of the business. Every business, including one run by a solopreneur, requires certain insurance policies that can carry the business through everyday hustles and tough times.

Types of insurance policies solopreneurs must take

  • Business owner’s policy

A business owner’s policy or a BOP is a very common policy that a lot of entrepreneurs invest in. It is a comprehensive policy that safeguards a lot of aspects of a business model, be it liability or damage control for assets required for operating the business. For a solopreneur, this kind of policy might be sufficient to cover a lot of ground, making it a viable option. That’s so because a BOP does not cover a lot of areas like worker compensation, that are not even needed for a business run by a solopreneur. The premiums for this type of policy are decided based on factors like the location of the business, type of business, revenue generated, etc.

  • Business interruption insurance

America has seen a total of 28 disasters in 2023 that caused billion-dollar damage, making the year quite difficult for residents and business owners. When it comes to businesses these disasters can mean loss of income as normal functioning is disturbed, operations stopped, and sometimes setups are fully destroyed. Business interruption insurance is a great option that helps in recovering any lost income. That helps the solopreneur with paying taxes, loans, and bills like electricity. This insurance policy also helps in shifting operations to a temporary location. The premium for this policy is again decided by the type of industry, the revenue generated, location, claims history, etc.

  • Disability insurance

Disability insurance can be a great investment to cover for small-term illnesses when the business cannot continue. This insurance can cover living expenses, including bills, family care, and lost income. This is a good option for temporary sickness or sudden mishaps that can interrupt operations. Income and expenses are used to calculate the disability insurance premium.

  • Health insurance

For every person, a complete and all-inclusive health insurance policy is very important to consider and purchase. It is no secret that healthcare costs in America are high, which makes quality health insurance crucial. When a medical emergency arises, this type of insurance coverage offers complete support, whether during business hours or outside of them. Health insurance premiums are computed using the medical history, current and previous illnesses, and other similar information.

  • Liability insurance

Liability insurance is one of the most vital and significant insurance plans that solopreneurs need to review and pay close attention to. This can include liability arising from products and services, business type, cyberspace, or personal activities. Every business owner can run into trouble and could get sued. For instance, they might face legal action from a client who had issues following their use of the services, or from a client who was on the property and hurt themselves on the premises. Liability insurance is a great way to pay for potential settlements or compensations that need to be paid to people who suffered because of the business. They also help in paying for legal fees. To calculate the premiums of liability insurance factors like location, type of business, industry, etc., are used and checked.

Solopreneurs can also look at their requirements if they require property insurance or any kind of commercial auto insurance. These two are also important parts of safeguarding the business and solopreneurs.

Solopreneurs have always so many balls in the air that it’s only natural for them to not be able to stay in control on all fronts simultaneously. In bad times, insurance can help the solopreneur stay afloat. At Gonzalez Insurance, we understand what your business needs, and we can also help you by evaluating your current policies, and providing advice after doing a portfolio assessment. To know more about our services and to get a customized quote, contact us today.