Tag: insurance

Sole proprietorship makes the dream of self-employment a possibility for many people. It doesn’t require the same legal filing as an LLC or corporation, yet lets you function akin to a business. Although your sole proprietorship may not have to register with the state of Wisconsin, you may need to obtain local licenses or permits and register with the Department of Revenue.

Since being a sole proprietor essentially involves running a business, we at Senz Insurance Agency, Inc., recommend commercial insurance. There are, however, some nuances to consider.

Becoming a Sole Proprietor Doesn’t Provide Automatic Liability Protection

Becoming a sole proprietor doesn’t provide protection from an insurance standpoint. It’s more for administrative purposes than legal or insurance protections. Don’t rely on being a sole proprietor as a replacement for having insurance. You’ll still have risk exposure from your business, possibly more than you had prior to starting a business. That’s why you’ll need to make sure you’re protected beyond your personal insurance policies.

Limits of Personal Policies

Homeowners insurance (or renters insurance) provides protection for personal property and liability risks that you, as an individual, face. These policies offer little to no protection for business activities, including work as a sole proprietor. In fact, most policies exclude coverage for business operations. Homeowner’s policies typically include basic coverage for home businesses, but the limits are extremely low and only apply to inventory. Your business liability, including any unintentional damage you cause to others, isn’t covered at all. If someone sued you, you wouldn’t have coverage. You might also put your home or renters insurance policy in jeopardy for not declaring your home-based business. 

The team at Senz Insurance Agency, Inc. can review your current insurance to see whether it’s sufficient or if you should expand your protection.

Get Commercial Insurance

Business owners policies (BOPs) offer bundled, affordable protection that is suitable for many businesses. Commercial package programs bundle multiple coverages to provide highly customized solutions tailored to specific business types.

There are multiple insurance companies offering these policy options to sole proprietors in Beloit, WI. Contact our team for assistance in comparing your options. One of our agents will gladly help you check coverages and rates, so you can find a policy that’ll protect you well when working.

Employment-related lawsuits can devastate businesses of any size. Even frivolous claims can cost thousands in legal fees and settlements. That’s where Employment Practices Liability Insurance becomes essential protection for your business. At Senz Insurance Agency, Inc., serving Beloit, WI, we help business owners understand how EPLI shields them from costly workplace-related legal battles.

What EPLI Actually Covers

This coverage protects against claims involving wrongful termination, discrimination, harassment, and retaliation. It also covers less obvious issues like failure to promote, wage and hour disputes, and workplace privacy violations. Don’t assume your general liability policy handles these situations. It won’t. Employment practices claims require specialized coverage that understands the complexities of workplace law.

Why Every Business Needs EPLI

You might think only large corporations face employment lawsuits, but that’s completely wrong. Small businesses are actually more vulnerable because they often lack dedicated HR departments and formal policies. A single discrimination claim can cost $50,000 to $200,000 in legal fees alone, even if you win. Most businesses can’t absorb that kind of financial hit without serious damage.

Key Policy Features to Consider

Look for coverage that includes defense costs, settlements, and judgments. Make sure the policy covers both current and former employees, and even job applicants in some cases. Third-party coverage is valuable too, protecting against claims from customers or vendors alleging harassment by your employees. Wage and hour coverage has become increasingly important as these lawsuits multiply.

Don’t wait for a lawsuit to realize you needed protection. Contact Senz Insurance Agency, Inc., serving Beloit, WI, today to discuss EPLI coverage and commercial insurance products that fits your business size and industry risks.