Starting a small business as a sole proprietor can feel liberating—no shareholders, no partners, and full control over your work. But with that freedom comes risk. Many sole proprietors in Republic and across Missouri assume they can skip business insurance, especially in the early days. The truth? Going without coverage can cost you more than you think.

What Is a Sole Proprietor?

A sole proprietorship is the simplest form of business ownership. You and your business are legally the same entity. That means any profits you make are yours—but so are any liabilities. If something goes wrong, your personal assets could be on the line.

Whether you’re running a home-based business, freelancing, or offering skilled trades like lawn care or cleaning services, you’re exposed to risks that business insurance can help protect you from.

Why Business Insurance Still Matters

Even as a solo business owner, you face real-world risks every day. Here are a few examples:

  • Client Sues Over a Mistake: If a client claims you delivered faulty work or breached a contract, you could be facing thousands in legal fees.

  • Property Damage or Theft: If your tools, computer, or inventory are damaged or stolen, replacing them out-of-pocket can hit hard.

  • Injuries on the Job: If someone is injured on your property—or you’re working at a client’s site and cause damage—you could be held personally liable.

Business insurance acts as a safety net to protect your livelihood and your finances.

Statistics on sole proprietors from Stocker Insurance

Types of Insurance a Sole Proprietor Should Consider

Not every sole proprietor needs every kind of coverage, but here are some common options to consider:

General Liability Insurance

This is the most basic type of business insurance. It covers things like bodily injury, property damage, and legal costs if someone sues you. Many client contracts even require it.

Professional Liability Insurance (Errors & Omissions)

If you offer services or advice (think consultants, designers, or bookkeepers), this protects you in case a client claims you made a costly mistake.

Business Property Insurance

Do you use tools, equipment, or inventory? This policy covers the cost to repair or replace them after a covered event, like a fire or theft.

Commercial Auto Insurance

If you use your vehicle for work—deliveries, job site visits, transporting tools—it may not be covered under your personal auto policy.

Workers’ Compensation Insurance

Even if you have one part-time helper or contractor, Missouri may require you to carry workers’ comp. It’s also good protection if you’re injured on the job and can’t work.

What Happens If You Don’t Have Coverage?

The consequences of going uninsured can be devastating:

  • You could lose personal assets like your savings, car, or even your home in a lawsuit.

  • Without property coverage, you’ll pay out-of-pocket to replace damaged or stolen business tools.

  • If you’re sued, you could be on the hook for legal fees, settlements, or judgments.

These risks can happen whether you’re running a lawncare business, crafting handmade goods, or offering IT support.

Business Insurance = Peace of Mind

Insurance might seem like an added expense when you’re trying to keep costs low, but it’s an investment in your business—and your future. At Stocker Insurance in Republic, Missouri, we help sole proprietors get the right protection at the right price. We’ll take time to understand what you do, what your risks are, and build a custom plan that works for your budget.

Final Thoughts

Yes, you do need business insurance as a sole proprietor—especially if you want to safeguard your business, your income, and your personal assets. One unexpected accident or lawsuit could cost more than months or even years of coverage.

Get a Free Quote from a Local Agent Who Cares

Don’t leave your livelihood to chance. Contact Stocker Insurance in Republic, MO today to get a free, no-obligation quote tailored to your small business. We’re here to protect what matters most—so you can focus on doing what you love.