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.