If you are a sole proprietor with no employees or contractors, you might not be required to carry business insurance (it’s a good idea to check your state requirements to be sure), but you might still want coverage. For legal purposes, as a sole proprietor, you, the owner, and the business are treated as one and the same. This makes you personally liable for your business activities. At the most basic level – even if it isn’t required you will want to protect your assets with general liability insurance.