What Is LLC Insurance?
LLC insurance is short for limited liability company insurance. It helps protect LLCs from different liability claims, like bodily injury or property damage caused by your:
- Business
- Employees
- Products
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 operates in, LLC insurance may be necessary.
What Does LLC Insurance Cover?
LLC insurance from The Hartford provides liability coverages to help protect your business from financial losses. You may want to consider two important types of small business insurance: professional liability and general liability insurance.
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 an error in your services. That’s why it’s also known as errors and omissions coverage, or E&O coverage.
Let’s say you own an accounting firm and one of your accountants makes a clerical error. The mistake causes your customer to pay thousands of dollars in fees, so they sue your business. Professional liability insurance can help cover your legal costs related to their claim.
General Liability Insurance for LLCs
A general liability insurance policy, also known as business liability insurance, can help protect you from claims alleging your LLC caused bodily injury or property damage.
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. Without it, you or your business would have to pay out of pocket for their medical bills.
This insurance can also help cover claims of advertising injury or copyright infringement. If you create an ad for your business and it includes a photo you don’t have permission to use, you could be sued for copyright infringement. Your general liability insurance policy can help cover your costs associated with that claim.
Additional Coverages to Consider With LLC Business Insurance
Many small business owners also choose to get more small business insurance coverages to protect against other liabilities.
- Workers’ compensation insurance: Most states require businesses with employees to carry workers’ comp. It gives your employees benefits to help them recover from a work-related injury or illness.
- Commercial auto insurance: This helps cover property damage or medical expenses if you or an employee causes an auto accident while driving for work.
- Business income insurance: If your business can’t open because of covered property damage, this insurance can help replace your lost income.
- Commercial property insurance: This coverage helps protect your LLC’s physical location and business equipment whether you rent or own it.
Do I Need Business Insurance for My LLC?
If your small business provides professional services to customers or clients, you can be at risk of a liability claim. 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
How Much Does LLC Insurance Cost?
Different factors can impact your LLC insurance cost. The insurance needed for small business depends on the type of small business you run and the risks it faces.
For example, a landscaping company may need a commercial auto policy because it uses cars for work, but an accounting firm’s employees don’t need to drive for business. The landscaping company is also in a higher-risk industry than the accounting firm. Because of these differences, the landscaping company may have a higher LLC insurance cost.
We’re an insurance company with more than 200 years of experience. So we know every small business is unique. Our team can help make sure your small business complies with state laws and help you prepare for the unexpected. To find out how much LLC insurance may cost your business, get a quote today. You can also call 877-239-0067 and speak with one of our insurance specialists.