Business Insurance Guide For LLCs

Structuring your business as an LLC might protect your personal finances in case of a lawsuit, but you’ll still need general liability insurance and other commercial policies to protect your business assets.

The best business insurance providers for LLCs offer convenient packages and great customer service, whether you prefer an online or face-to-face experience.

An LLC, or limited liability company, is so named because it limits the impact of claims on owners' personal finances if their business is found liable. If the business is sued or faces bankruptcy, your personal assets should be protected — as long as you haven’t been mixing personal and business finances or breaking the law.

But that doesn’t mean the business’s assets are protected. If your LLC is held responsible for damaging someone’s property, injuring someone or making a mistake that resulted in a financial loss, for instance, it might have to pay medical bills, settlement costs and more.

In such instances, business insurance for your LLC is beneficial.

What Does LLC Insurance Cover?

LLC business insurance can refer to several individual types of coverage, potentially bundled together. Most businesses, including LLCs, should have some or all of the following:

• General liability insurance protects your business against bodily injury and property damage claims filed by customers and other third parties.

• Business property insurance covers your business’s inventory, equipment, and the space you own or rent in case of natural disasters or other accidents.

• Commercial auto insurance provides coverage if you use a vehicle in the course of doing business.

• Professional liability insurance helps if you provide services to customers for a fee.

• Workers’ compensation insurance is crucial if you have employees.

A business owner's policy is often a good place to start. These packages normally offer general liability and business property insurance. Many also include business interruption insurance, which makes up for lost income if your business has to pause operations because of a covered loss.

There are lots of other types of business insurance that protect against more specific types of risk. If your business manufactures or sells products, handles sensitive data or sells alcohol, for instance, you may need more specialized protections.

Purchasing several insurance policies from the same provider can make the shopping experience easier for a busy business owner. Many insurers offer industry-specific packages that come with discounts. And if you have to file claims, you’ll work with a similar system each time.

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