For many limited liability companies (LLCs), LLC insurance is an essential part of running a successful business.
Small business insurance for LLCs helps protect your company from claims that can come up during normal operations. Without it, you’d have to pay out of pocket to cover these claims, which can be very expensive.
What Is LLC Insurance?
LLC insurance helps protect businesses from different liability claims, like bodily injury or property damage caused by your:
Many small businesses register as LLCs. This separates your business assets from your personal belongings.
However, it doesn’t protect your business from the various risks it may face. Depending on the industry your business is in, LLC insurance may be necessary.
Do I Need Business Insurance for My LLC?
Business insurance for LLCIt’s a good idea to have business insurance for your LLC. Without insurance coverage, you’d have to pay out of pocket to cover claim costs, which may not be feasible for many small businesses.
The insurance needed for small business depends on the type of small business you run and the risks it faces.
Be aware that LLCs may be required to have certain types of business insurance. For example, most states require businesses with employees to have workers’ compensation insurance.
If your small business provides professional services to customers or clients, you can be at risk of a liability claim. Certain types of LLC insurance, like professional liability insurance, can help:
- Protect your business’ property and possessions
- Lessen the risk to your personal assets
- Cover legal costs if a customer or competitor sues you
Professional Liability Insurance for LLCs
As a small business owner, you try your hardest to keep your customers happy, but mistakes can happen.
Our professional liability insurance helps protect you and your LLC if a customer sues you for making a mistake in the professional services given.
This insurance is also known as errors and omissions coverage or E&O coverage.
General Liability Insurance for LLCs
General liability insurance, also known as business liability insurance, can help protect you from claims that your LLC caused bodily injuries or damaged someone else’s property.
Liability claims related to work done away from your business location may also be covered under products-completed operations coverage.
So, if a customer trips over a loose wire at your business and breaks their wrist, general liability insurance can help cover their medical expenses.