Starting an LLC (limited liability company) is a legit way for a business owner to assure protection of their personal assets and liability by keeping it separate from that of their business. Even if your personal goodies are not on the line, the thought of your business going under or being faced with a snarling lawsuit can still be terrifying.
That's why it's important to know about the different types of LLC insurance available. Our independent agents are here to eliminate the hassle of searching on your own by walking you through a handpicked selection of top policies for you.
Basically, LLC insurance is designed to protect your company against liability claims from injuries caused by your business, employees, faulty products or a professional error.
Kind of. Almost all states require a business to have workers compensation coverage at the very least. As far as other coverage, it depends on your specific type of business, the line of work you're in and state laws.
Not really. An LLC will protect your personal assets and keep them separate from the business, but your business is considered a separate entity and will still need its own insurance policy.
Also, there are certain exceptions in which a business owner could still be held personally responsible for their business, such as excessive debt.
While having an LLC offers protection from personal liability for business claims and debts, it's not all-encompassing. There are some factors that it can't protect the owner from.
Since we live in a lawsuit-loving society, professional or careless errors made by you or your employees can easily result in filed claims. LLC insurance coverage exists to ensure that any potential lawsuits can be settled without causing you or your business complete financial ruin.
An LLC insurance policy protects all liability-related details of business operation, covering its owner and employees. The two most important types of coverage will be general and professional liability, but if you want all your bases covered, there are a number of add-ons you will want to consider.
Key components of protection:
Additional coverage for an LLC to consider:
The cost of your policy will depend on coverage and a number of other factors like the size, nature of your business, location and the materials you use.
If your business offers products, services or both that are considered to be high-risk, your policy will be more expensive. Typically, coverage ranges from a few hundred to a couple thousand per year.
Insurance policies can be complex and searching through options can be confusing, time consuming and frustrating. An independent agent's role is to simplify the process.
They’ll make sure you get the right coverage that meets your unique needs. Not only that, they’ll break down all the jargon and explain the nitty gritty bits, so you understand exactly what you're getting.
Our agents will review your needs and help you evaluate which type of LLC insurance makes the most sense for your business. They'll also compare policies and quotes from multiple insurance carriers to make sure you have the right protection in place.