Business Insurance for LLCs

Limited Liability Company Insurance: Another Important Step to Protect Yourself

As a small business owner, you understand the importance of protecting yourself. After all, that’s why you set up your business as a limited liability company (LLC).

But what about your business’s assets?

This is where limited liability company insurance - and Simply Business - can help. We’re an online insurer that specializes in helping small business owners like you find the best coverage for your LLC, all at an affordable rate.

Best of all, we’re fast. Because we know you don’t have a lot of time, we’ve designed our quote form to help you compare rates for LLC coverage in just 10 minutes.

Ready to see policies that can work for you?

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Policies Available for LLC Insurance:

• General liability insurance
• Professional liability insurance
• Workers compensation

Benefits:

• It can protect your business if certain claims arise.
• If you’re accused of negligence, insurance can help cover you.
• You can request proof of insurance, which positions your business as trustworthy.
• You may be required to get insurance, depending on where you work.

What Type of Business Insurance Do I Need as an Owner of an LLC?

It depends on the type of business you own. After all, there are many different types of LLCs—from accounting firms and to general contracting companies, to bakeries and photographers.

At Simply Business, we know insurance can be confusing. You probably do as well, especially if you’ve searched terms like, “business insurance for llc.” That's why we’re here. Our licensed insurance agents work tirelessly to help you get the right coverage, as well as answer any questions you might have about your policy.

LLC companies should consider getting the following policies:

General Liability Insurance

When it comes to business insurance for LLC protection, a general liability policy is often a good choice for LLCs that interact with customers and vendors. That’s because this policy can help cover the costs associated with third-party accidents, injuries, and even damage to property. It’s one of the most important (and popular) policies to get.

Here’s how GL coverage can work. Let’s say you own a landscaping business, and you’re mowing a resident’s lawn, when a rock gets hit by your mower and breaks the homeowner’s window. Unfortunately, the window is custom-made, meaning it’s very costly to replace. Plus, your business is on the hook to pay for the damage.

Or maybe you’re a cosmetologist who specializes in skincare treatments. Unexpectedly, one of your customers gets an allergic reaction during a facial and has to go to the emergency room. Following the incident, your customer sues you for the costs of her medical bills and emotional distress.

Just one of these incidents could be enough to potentially put you out of business. Especially if property damage or medical bills are coupled with a lawsuit.

Fortunately, general liability insurance is designed to help financially protect your business. It can help cover the costs of claims resulting from property damage, medical bills, and even legal fees (up to your policy’s limit).

General liability insurance can usually cover:

• Bodily injury to another person (like a customer)
• Third-party property damage
• Personal and advertising injury
• Medical expenses
• And more

Here’s what a general liability policy usually doesn’t cover:

• Damage to your own property
• Professional services
• Damage to your work
• Motor vehicles while in business use
• Expected or intentional injury or damage
• And more

Professional Liability Insurance

If you own a company that provides services to clients (for example, accounting, financial advising, web design, or copywriting), you’ll probably want to get professional liability insurance.

This type of coverage can likely help protect you if you’re accused of negligence, libel, slander, or even copyright infringement.

Let’s take a look at professional liability protection in action. Imagine you’re a financial adviser who recommends an investment to your clients. A few months later, one of your clients sues you, claiming they’ve lost thousands of dollars due to your poor financial advice.

Whether you’re actually at fault or not, without professional liability insurance, you would have to pay costly legal fees to hire a lawyer and defend yourself.

Professional liability coverage is so important because you never know when you could get sued. Think it could never happen to you? Unfortunately, 43% of small business owners polled reported being involved in a lawsuit or threatened by one.

It makes sense to get professional liability coverage at the get-go. Your policy usually covers:

• Negligence or alleged negligence
• Legal defense costs
• Omissions or alleged omissions
• Copyright infringement
• Claims and damages
• And more

A professional liability policy usually doesn’t cover:

• Intentional acts and omissions
• Property damage
• Medical expenses
• Bodily injury
• False advertising
• Employment matters
• Patents and trade secrets
• And more

Workers Compensation Insurance

Have employees? Yes, even just one worker. Then you probably need to get workers compensation insurance too. This type of policy is usually required by law and can help protect you if an employee gets injured or sick while working for you.

Aside from the legal requirement, getting workers compensation insurance is a good idea anyway. Work injuries are pretty common in the United States - and costly too! In 2018, Americans reported $170.8 billion in workers compensation claims.

If you have workers compensation, your policy can help cover costs associated with:

• Medical bills
• Employees’ lost wages
• Rehabilitation expenses
• Death benefits
• And more

Workers compensation doesn’t cover everything though, so it’s important to check with your insurer first.

Why Should I Get LLC Insurance?

You may think you’ll never make a mistake, but the reality is, you’re only human. And some incidents are simply out of your control, especially if you have employees working for you.

It’s important to get protection ahead of time, before an event occurs. You’ve already taken steps to protect your personal assets. Now it’s time to protect the business you’ve worked hard to build. Just one mistake can be incredibly costly.

Take a look at the average cost of the most common claims:

• $30,000 for property damage or accident claims
• $50,000 for reputational harm claims (e.g., in cases of slander or libel)
• $20,000 for a customer slip-and-fall case

Can your business cover these costs? If you’re like most small business owners, the answer is no. Just one claim is enough to potentially put many LLCs under water.

Remember, even if you’re sued and it’s not your fault, LLC insurance can help protect you. Unfortunately, lawsuits are more common than ever before. Even your most satisfied customers can turn against you if an unexpected event or injury happens.

When you’re a small business owner, you carry a lot of risk—but you’re not meant to handle it all on your own. Getting LLC insurance is another way of protecting your livelihood for years to come. At Simply Business, we’re here to help you find the right policy with the right amount of coverage for your business.

Limited Liability Company Insurance FAQs

• Is an LLC policy required by law?

  It depends on where you work and the types of business you own. Some states require owners of LLCs to have coverage before performing work. This is particularly true for general contractors.

  Regardless, getting insurance is usually a good idea. It can help cover you financially, so you don’t have to worry as much about the costs of unexpected incidents or lawsuits.

• Is LLC insurance tax-deductible?

  Great news! Usually LLC coverage is a tax-deductible expense. This means it can help lower your taxable income. As a small business owner, it’s worth investigating every deduction possible. Talk to an accountant or tax preparation specialist if you have questions about your specific business.

• How much LLC liability coverage will I need?

  It varies, depending on your business. At Simply Business, we can help tailor a policy based on:

  • The size of your business
  • Your business’s location
  • Your annual revenue
  • The specific services you provide
  • And more

  When you fill out our online quote form, we typically ask questions to help understand the amount of coverage you may need from top insurers. Then you can compare quotes to find the best, most affordable policy for your business. And there’s no obligation required!

  Our licensed insurance agents are also available on the phone to help answer any of your questions and help you choose a solid policy option.

• What should I consider before buying a limited liability company policy?

  We know you’re short on time. That’s why we try hard to help you get quotes in just 10 minutes. To speed up the process, we ask that you have the following information on hand:

  • Annual revenue estimates
  • Information on any previous claims
• Does insurance for business owners differ by state?

  Yes, requirements can differ from state to state. Requirements can also differ based on your line of work. That’s why our online quote form is designed to help you find coverage based on where you work and what you do.

• What does LLC insurance cover?

  In most cases, we recommend comprehensive coverage for owners of LLCs. This can include both general liability insurance and professional liability insurance. Together, these two policies can help cover costs associated with:

  • Bodily injury
  • Accidents and damages
  • Unintentional mistakes
  • And more

  But we also know every business has different needs. Our licensed agents can work with you to help design coverage that meets your specific needs. Just give us a call or get started by filling out our online quote form.

• How much does LLC insurance cost?

  There isn’t a one-size-fits-all answer here. It depends on many different factors. But usually, we can offer accurate quotes based on:

  • Your business’s location
  • The services you provide
  • Your estimated annual revenue
  • And more

  Are you ready to find out how much LLC insurance might cost you?

  All you have to do is answer a few, quick questions about your business first. Then we can show you free quotes from leading insurers across the nation!

• What if I perform multiple activities as the owner of an LLC?

  We get it. Business owners often wear many hats. Just let us know exactly what you do, and our licensed insurance agents can work with you to show you coverage options.

Why Choose Simply Business?

We’re an online insurance platform that’s quickly growing in the industry. We make it easy for small business owners, like you, to quickly compare quotes and secure LLC coverage hassle-free.

Thousands of customers across the nation trust Simply Business to help them find affordable, comprehensive coverage—and they’re usually pleased with the results.

Need more reasons to choose Simply Business?

• We care about small business owners. We have a passion for supporting small business owners. That’s why we offer resources and information to help support your growing business.

• We cut through the jargon. Let’s face it. Insurance can be confusing. We work hard to make our policies easy to understand. Our licensed agents also work with customers to answer questions about their policies.

• We prioritize your time. As a business owner, you have a lot on your plate. To help, we make buying insurance fast and simple. In fact, you can compare free quotes from top insurers in just 10 minutes.

You’ve already taken key steps to separate your personal and business assets. Why stop there? LLC coverage is another key step to help protect your business and everything you’ve worked hard to build.

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This content is intended to be used for informational purposes only. It is not intended to provide legal, tax, accounting, investment, or any other form of professional advice.