Would you suggest getting small business insurance for a mobile business?

Question

My husband and I recently started a mobile buisiness. We have no "location." The business is run and the service is provided on location at the customer's request. We have set our business up as a sole proprietorship. Do you suggest insurance? If so, what kind?

Answer 1

Of course you have a location.  You have the office location, where you pay your bills and do your taxes - most likely in your home.  Then you have the service location - where you STILL have liability exposure.  You can be sued for stuff that happens there!  You can be sued regarding the service you are providing!  If you are, if you don't have the $50,000 or so for defense costs sitting in the bank, you'll lose all your assets, since you're a sole prop.  

Also, any business tools & equipment are NOT covered under your homeowners, except the first $250.

Go sit down with a local agent, who can tailor coverage to your needs.

Answer 2

Yes, definitely.  First, if you are using you personal vehicles to get to the customers location your auto insurance company can avoid paying a claim if on a business trip.  Second, liability for any error or damage you cause while doing your work.  As a sole proprietor you are liable for any damage or claim and your homeowners or auto will not pay.  See your insurance agent and discuss coverage needed, it probably will not be that expensive.  I have a small farm business and pay very little extra for business coverage.