Sole proprietors need affordable, comprehensive and reliable general liability insurance to protect their businesses from potential risks and liabilities. We evaluated the best sole proprietor business insurance options based on cost, coverage and customer satisfaction — narrowing our list down to the top four providers.
Best General Liability Insurance for Sole Proprietors in 2025
Updated: January 3, 2025
Advertising & Editorial Disclosure
Key Takeaways
biBERK is the best business insurance provider for sole proprietors, offering high customer satisfaction, a low complaint rate, and affordable premiums averaging $275 per year ($23 per month).
Thimble provides the cheapest liability insurance for sole proprietors, with rates averaging $287 annually or $22 monthly.
Hiscox is ideal for sole proprietors seeking additional coverage, offering a 5% discount when bundling multiple insurance products, providing flexibility and cost savings.
Why Trust MoneyGeek?
We collected 1,229 general liability insurance quotes and analyzed cost information alongside customer satisfaction and financial stability reports to determine the best general liability insurance for sole proprietors.
Coverage costs and company information was last updated in 2024.
biBERK: Best Overall General Liability Insurance for Sole Proprietors
pros
A low average rate of complaints, which means customers are satisfied
A high financial strength rating from AM Best
Affordable rates compared to other providers
cons
May take some time to get a quote
Offers general liability insurance only in 27 states
COMPANY HIGHLIGHTS
biBERK offers the best business insurance for a sole proprietorship. With a high customer satisfaction score and an average rate of $275 per year — or $23 per month — biBERK combines affordable premiums with quality service. Additionally, compared to other providers we analyzed, biBERK received a lower-than-average number of complaints. This indicates that, in general, policyholders are satisfied with their experience with the company.
Thimble: Cheapest General Liability Insurance for Sole Proprietors
pros
Affordable premiums at an average of $22 per month
Coverage is available on a per-job, monthly or yearly basis
Online quote requests are processed quickly compared to other providers
cons
High rate of customer complaints
Customer support is only available online
COMPANY HIGHLIGHTS
Thimble offers the cheapest sole trader liability insurance, with rates averaging $287 per year or $22 per month. Coverage is also customizable, and you can purchase a policy specific to a job or on a monthly or annual basis. However, note that while Thimble is cheaper compared to other providers, these costs can differ greatly depending on your industry. For instance, general contractors will pay an average of $1,530 per year or $126 per month, while cleaning businesses will pay an average of $658 per year or $53 per month.
The Hartford: Best for Customer Satisfaction
pros
High AM Best rating
A low average rate of complaints
Shorter quote time compared to other providers
cons
Not as affordable compared to other providers
Calling an agent is sometimes required to get a quote
COMPANY HIGHLIGHTS
Based on complaint data from the National Association of Insurance Commissioners (NAIC), The Hartford offers the best customer satisfaction compared to other providers we analyzed due to its low average rate of complaints. It also has an excellent financial stability rating, indicating that policyholders can trust in its long-term security. However, while The Hartford has great customer service, it may not be the most affordable sole trader business insurance. Additionally, despite its short quote time, you may still have to call to complete your request for a quote.
Hiscox: Best for Cost Savings on Supplementary Coverage to General Liability
pros
Offers 5% rate reduction if you get more than one insurance product
High AM Best rating
Processes online quotes faster than most other similar providers
cons
Not available in all states
Limited to businesses with 10 employees or fewer
COMPANY HIGHLIGHTS
If you need to add extra coverage to your sole proprietorship liability insurance policy, you might want to consider Hiscox. When you purchase more than one Hiscox insurance product, you receive a 5% rate reduction, making it a practical choice for sole proprietors needing supplementary coverage. For instance, you can add business property insurance to your general liability policy for extended coverage — while reducing overall premiums. Additionally, Hiscox has excellent financial stability and customer satisfaction ratings, and it’s faster to obtain an online quote compared to most other providers.
How We Evaluated the Best General Liability Insurance for Sole Proprietors
To find the best sole proprietor business insurance options, MoneyGeek examined 1,229 quotes from various providers, analyzing each provider’s affordability, customer satisfaction, financial stability and online quote process.
MoneyGeek used a sole proprietorship with the following characteristics to gather general liability insurance quotes:
- Five years in business in the software development industry
- No employees and no payroll costs
- $500,000 in annual revenue
How Much Is General Liability Insurance for a Sole Proprietor?
It costs an average of $342 a year for a general liability policy with a $2 million aggregate limit, $1 million occurrence limit and $0 deductible. This can change depending on several factors. Factors that impact the cost of business insurance for sole proprietors include:
- Industry risks: The kind of industry your business is in can affect costs, as the associated risks will determine your likelihood of making a claim. The riskier the industry, the higher the insurance premiums may be.
- Location: The risks specific to where your business is located can result in more expensive premiums. For instance, if your area is more prone to wildfires or crime, you might need to pay more.
- Previous claims: If you’ve made a claim before, your insurance premiums may increase.
- Coverage: Higher or lower limits can impact your costs. The higher your liability limits, the more you can expect to pay.
It's important to note that if you’re a sole proprietor with no employees, payroll will not impact your insurance premiums. Business owners are not considered an employee in a sole proprietorship. However, if you do have employees, your general liability insurance premiums may be calculated differently.
Additional Business Insurance for Sole Proprietors
General liability insurance for sole proprietors provides basic coverage against common risks — but it may not protect you against all the risks your business may be exposed to.
Here are a few coverage options you could consider, depending on your industry:
- Workers' compensation insurance: This is legally required in most states and covers any work-related injuries or illnesses your employees face. For instance, medical bills, lost wages and rehabilitation costs can be covered by workers’ compensation. Requirements can vary by state.
- Commercial auto insurance: If your business owns or uses any vehicles, commercial auto insurance can provide coverage in the event of an accident, damage or injury.
- Professional liability insurance: This protects your business against claims of errors or mistakes in the services provided, paying for legal fees, settlements and judgments related to professional negligence.
- Commercial property insurance: This type of insurance pays for repairs or replacement of damaged property that the business uses from damage or loss due to fire, theft or other covered perils.
- Business income insurance: This type of coverage provides compensation for lost income if your business is unable to operate due to a covered event, such as a fire or natural disaster.
General Liability Insurance for Sole Proprietors FAQs
Finding the right general liability insurance provider involves careful research and analysis of your business needs. Get a deeper understanding of the best general liability insurance for sole proprietors through our frequently asked questions.
What insurance does a sole trader need?
A sole trader typically needs general liability insurance to protect against claims of bodily injury or property damage. They might also consider professional liability insurance if they provide services or advice. Additionally, commercial property insurance is essential if they own or rent physical business space.
Do I need business insurance for a sole proprietorship?
Yes, business insurance is highly recommended for a sole proprietorship. It helps protect personal assets from business-related risks and liabilities, such as potential accidents, injuries and damages.
How much does general liability insurance cost for a sole proprietor?
The average cost for a general liability policy with a $2 million aggregate limit and a $1 million occurrence limit is $342 per year, but this can vary. Factors influencing the cost include industry risks, business location, previous claims history and the amount of coverage.
Can you get business insurance as a sole proprietor?
Yes, you can buy insurance as a sole proprietorship. The type of small business insurance you need, however, will depend on your business and whether you have any employees.
About Melissa Wylie
Melissa Wylie is the Content and SEO Manager at MoneyGeek, with nearly a decade of editorial experience and six years of work in financial content focused on small businesses. She previously held SEO positions at Bankrate and LendingTree, with bylines on ValuePenguin and MagnifyMoney.
Wylie has a journalism degree from the University of North Texas. Her strong foundation in journalism helps her craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.