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Make sure your LLC is protected with business insurance. Here's what you need to know.
WRITTEN & RESEARCHED BY
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Last updated onUpdated
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Editor & Senior Staff Writer
Business insurance is an important part of any LLC’s risk management strategy. An accident, property damage, costly mistake, or lawsuit can threaten your business at any time. Business insurance won’t eliminate these risks, but the right coverage can help protect your LLC.
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LLC insurance typically includes a combination of policies tailored to your business’s specific risks.
Most LLC insurance bundles will have a foundation of general liability insurance or a business owners policy (BOP) that contains both general liability and commercial property insurance.
Different risks require different policies, and only you and an insurance expert can identify the best choices for your business.
LLC insurance helps protect your business from unexpected and high-cost risks.
While you can do a lot to reduce risks, some things are beyond your control. When you choose policies tailored to your needs, you can protect your income and assets from unexpected events.
Once you decide to purchase insurance for your LLC, an insurance professional can help you identify your business risks and select appropriate coverage.
Start with general liability coverage, then add policies based on your specific risks.
Most insurers offer a general liability policy or a bundle of basic coverage called a business owners policy (BOP), which usually includes general liability and commercial property coverage. Your insurer may offer a slightly different combination or allow you to customize your business insurance bundle.
The right combination of business insurance for LLCs depends on your business, industry, and specific risks. Here are the most common types of LLC insurance.
Many business decisions come down to financial considerations, and it can be difficult to evaluate your LLC business insurance needs when you’re not sure about the costs of business insurance.
Fortunately, many insurers offer quick, personalized quotes for LLC business insurance. Most LLCs will find affordable coverage, especially if you compare multiple providers.
Estimates suggest that the average company pays about $30 a month for general liability insurance, and 95% pay less than $50. This means you’re likely to pay anywhere from $360 to $600 a year for liability coverage for your LLC. This is relatively affordable given the level of protection provided.
Once you’ve acquired foundational insurance, you can add additional types of coverage. Most LLC business insurance is optional and not legally required. Some types — such as workers’ compensation, health insurance, and commercial auto — may be required depending on your situation.
We recommend talking with your insurance agent or broker to make sure you have the right types of coverage for your LLC.
Finding the right LLC business insurance can be straightforward and affordable. Understanding the types of coverage you need for your LLC and the factors that affect your costs are key.
Start by identifying the risks your LLC might face. For example, online-only businesses may have a lower premium than someone with a storefront. Once you’ve identified your needs, you’ll be prepared to pick the right mix of LLC business insurance.
You can apply for business insurance online and get a personalized quote within minutes from some providers. Or consider working with an insurance broker like Coverwallet and Gallagher Business Insurance. They can compare options and guide you through the process. Reputable insurance providers like The Hartford and Nationwide also offer LLC insurance and give you the option of working directly with an agent who can guide you.
Regardless of the coverage you choose, your business needs protection. Avoid underinsuring your business out of a false sense of optimism or risk denial. Make sure your LLC has the coverage it needs to stay protected.
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