Liability after sole proprietorship - Legal advice centre

Questioner

If you are held liable for damages after ceasing a sole proprietorship, is this covered by your personal liability insurance? Since the business liability insurance is cancelled after ceasing the business.

Lawyer

Without insight into the exact policies I cannot answer with 100% certainty, but I do not expect your personal liability insurance to provide coverage. Normally this is not necessary, since the damage occurred when you were still running the business and the (I assume) business liability insurance was still in force. The latter would then provide coverage. Again, without knowing the exact circumstances and conditions this is a general answer.