LLC Insurance

Finding the Best LLC Insurance

(Because business is always personal)

Greg Lewerer | May 22, 2018
Small business owners on the computer

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. 

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What is LLC Insurance?

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.

Is LLC Insurance Mandatory?

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.

Does a Limited Liability Company Act as LLC Insurance?

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.

What are Some Limited Liability Exceptions?

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.

Examples include:

  • You've acted in a negligent or irresponsible manner.
  • You've done something illegal with your business, such as fraud.
  • You've signed a personal guarantee for a loan.
  • You've mixed your personal expenses with business expenses.
  • You've personally injured someone.
  • You've failed to deposit taxes withheld from employee wages.

Why Do I Need LLC Insurance?

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.

What Does LLC Insurance Cover?

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:

  • Professional liability: Covers professional errors made by the business.
  • General liability: Protects against lawsuits related to injury/property damage made by the business.

Additional coverage for an LLC to consider:

  • Commercial auto insurance: This will cover any damage, or theft, to the vehicle you or your employees use on the job.
  • Inland marine insurance: Protects property, equipment and tools moving in between jobsites and the business.
  • Installation floater insurance: This is a type of inland marine insurance. It will cover the materials and products from the time it leaves your property until the time it is installed or used.
  • Property insurance: This insurance will cover any damages to your physical office space.
  • Workers' compensation: Covers employee’s medical costs, lost wages, permanent disability or death benefits that result from a workplace injury or illness. This coverage is mandatory in almost all states.

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How Much Does LLC Insurance Cost?

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.

The Sweet Benefits of an Independent Agent

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.

Finding and Comparing LLC Insurance Quotes

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.

Now, who's ready to get their insurance problems solved?