What is an LLC?
An LLC is a limited liability company, which is a business that is completely separate from your personal finances.
This means that the LLC forms a wall between the company and you, the business owner, protecting your personal assets from being negatively affected if someone sues the business or if someone gets hurt as a result of your work.
It’s more complicated to create an LLC than to simply run your business as a partnership or sole proprietorship, but there are real advantages to setting up an LLC.
Learn more about the pros and cons of creating an LLC versus other types of companies.
Do I need business insurance if I have an LLC?
You might be wondering: do I need business insurance for my LLC? The short answer is yes.
One of the main benefits of forming an LLC is that your personal assets are more protected.
If a vendor slips and breaks their arm at your job site, your business could still be liable for covering the medical fees. If you don’t have liability insurance for your LLC, your business finances could be severely impacted.
A lawsuit could also put your business at risk. If you don’t have the proper insurance, you could be forced to pay out of pocket for legal defense costs even if you aren’t found liable.
The only way to cover your business against these types of scenarios is to get LLC business insurance.
What type of insurance does an LLC need?
To get the full advantages of having an LLC, it’s crucial to support your business with the right amounts and types of insurance. It can help to cover your business if there’s an accident, injury or mistake.
Here’s a guide to some of the most common types of business insurance for LLCs:
General Liability insurance
General liability insurance for LLCs can help to provide financial protection if an accident occurs at your business, such as a customer injury or damage to someone’s property.
Bodily injury
Sometimes liability insurance is called “slip and fall insurance.” This is the part of your policy that would help protect your business if a client falls down the stairs at your office and breaks their arm.
Property damage
General liability also covers property damage to items that don’t belong to you. If you accidentally break a client’s window, your insurance will cover repair expenses up to your policy limit.
Learn more about general liability insurance.
Workers’ Compensation insurance
Workers’ compensation insurance can help pay for medical care and lost wages after a workplace injury. It’s almost always required if you have employees and it’s also a good idea to have business owner’s coverage for yourself.
Learn more about workers’ compensation insurance.
Commercial Auto insurance
Commercial auto insurance provides coverage if you are involved in an accident in a business-owned vehicle. It can also provide coverage for accidents in your personal vehicle while it’s being used for work-related purposes.
Learn more about commercial auto insurance.
Commercial Property insurance
Commercial property insurance can help protect your business equipment, inventory and the building you work in. If your office is destroyed in a fire, property insurance can help with replacement costs or repairs.
It can also help with the loss of business income while you get back up and running.
Learn more about commercial property insurance.
Professional Liability insurance (E&O insurance)
If you make a mistake or a customer lodges a claim against you, professional liability insurance can help provide the financial protection you need to defend your company.
Learn more about professional liability insurance.
How much does business insurance for LLCs cost?
So how much is LLC business insurance? The business insurance cost LLCs face varies, depending on the kinds of risks your business faces. Some of these risks can include:
- How many vehicles you use for work
- Where your business is located
- What kind of work you do
- How long you’ve been in business
- Your claims history
- How high you set your coverage limits
- If you have or are going to hire any employees
The exact price you’ll pay depends on all these factors. Bear in mind that, in general, jobs that include working on other people’s property often have higher insurance costs.
NEXT calculates your premium (that is, your insurance costs) by taking into consideration all of the factors listed above, such as the likelihood that you’ll make a claim and how many vehicles you have.
Note: It’s important to provide the most accurate information about your business when you get a quote for insurance to make sure you get the coverage that is right for you and any claims are processed without delays.
How do you get LLC insurance?
With LLC insurance, a company is covered in the event of an accident or injury. A customized insurance package will boost your confidence and allow you to focus on your business.
NEXT is a one-stop shop for helping LLC businesses find the right insurance at affordable prices.
Since we only help small business owners like you, we can create a customized business insurance package tailored to your exact needs.
Everything is online, so you can get an instant quote, review options and buy coverage in less than 10 minutes. You’ll have immediate 24/7 access to your certificate of insurance (COI) as soon as you buy your insurance.
Get an instant quote today to get started.
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