If you run an LLC (Limited Liability Company), you may be wondering if you need LLC business insurance. The answer is yes! If you run a business of any kind – including an LLC – business insurance is the best way to protect yourself from liability as your business grows. Learn more about why LLC business insurance is so crucial for your small business.
LLCs Protect You from Some Liability – But Insurance Is Still Necessary!
LLC is short for “Limited Liability Company.” Forming an LLC does help protect you from some liability as a business owner, which is one of the reasons that they’re such a popular type of business.
By forming an LLC, you create some separation between your personal assets and business assets. An LLC is a legally separate entity. If you’re sued or your business fails and goes into debt, only your business assets can be taken – your personal assets will be protected. This is in contrast to some other forms of doing business, like sole proprietorships.
However, that doesn’t mean that you should skip business insurance. A successful lawsuit against you could still put you out of business, even though your personal assets will be protected. And that’s definitely not something you want. LLC business insurance provides an extra “safety net” that helps protect your business if you’re sued, or if something else goes wrong while you’re conducting business.
Types Of Insurance Policies That LLCs May Need
So, if you’re the owner of an LLC, what kind of LLC business insurance do you need? The answer varies slightly depending on your line of work and a few other factors. In general, though, you may need one or all of the below types of LLC business insurance policies:
- General liability insurance – This type of insurance protects against most types of liability, such as property damage, personal injuries, medical expenses, and defending against lawsuits in general.
- Business Owners Policy (BOP) – A Business Owners Policy (BOP) combines both general liability insurance and commercial property insurance into one package. This makes it popular among many small business owners, since it’s a more convenient way to buy insurance coverage.
- Professional liability insurance – If you provide services rather than products, professional liability insurance helps protect you from liability if you make a mistake. For example, if you’re an architect and you’re sued because your plans were faulty, professional liability insurance would protect you from liability.
- Workers’ compensation – If you have one or more employees, you may need to pay for workers’ compensation insurance, depending on state requirements. This type of insurance covers any medical bills, damages, and other costs that workers may be entitled to if they’re injured at work.
Need LLC Business Insurance? Contact a Trusted Insurance Professional to Get Started!
Every business is different. If you need LLC business insurance, it’s a good idea to work with a trusted insurance professional who understands this – and can provide the customized coverage your LLC needs. At Coterie Insurance, that’s exactly what we offer.
Small business insurance agents and brokers can help you get the coverage you need to protect your business – and customize your policy so that you only pay for what you truly need. So don’t wait. Find an agent today, get a quote, and the protection your LLC needs against liability.
