Commercial Umbrella Insurance
Do Sole Proprietor Contractors Need Umbrella Insurance?
Yes — sole proprietors face the same liability risks as larger firms, but with a critical difference: there’s no corporate shield between a claim and your personal assets.
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Do sole proprietor contractors need commercial umbrella insurance?
When a sole proprietor is sued, their personal assets — home equity, savings, vehicles — are at risk alongside their business. A $1.5M judgment against a sole proprietor with $1M GL and no umbrella is a $500K personal financial problem.
A $1M umbrella at $500–$800/year provides $2M total GL coverage and extends over auto liability. For a sole proprietor, this level of protection is especially important because the financial consequences of being underinsured are personally catastrophic.
Many sole proprietors skip umbrella to reduce costs. This is the wrong tradeoff. Umbrella is among the cheapest coverage available per dollar of protection — and for a sole proprietor, it may be the single most important coverage decision they make.
Get umbrella coverage today.
Trade Safe shops dozens of A-rated carriers to find the right commercial umbrella policy for your contracting business.