Business insurance for LLCs

LLC insurance is customized coverage for limited liability companies (LLCs). It protects the personal assets of LLC owners, also known as members, in case of legal claims or lawsuits against the business. Business insurance for LLCs can be customized to your company's size, industry, and more.

What is an LLC?

A limited liability company, or LLC, is a business structure that shields members' personal assets from company debts and liabilities. It offers management flexibility for many small business owners and more protection for personal finances than a sole proprietorship.

Can an LLC have employees?

An LLC has no restrictions on the number of people it employs, but it has to follow rules and regulations regarding its workers. That means registering and paying employer taxes, withholding income tax, and following employment laws.

Do I need business insurance if I have an LLC?

It depends. In some cases, business insurance is required, but even if it is not, LLCs should consider it. While an LLC safeguards owners' personal assets, the company is still liable for its claims and debts. Small business insurance for an LLC protects against financial losses due to unexpected events.

Depending on your policy, business insurance can cover liability claims, property damage, natural disasters, and cybersecurity breaches. You might also be legally and contractually required to carry certain coverages. A customized LLC business insurance policy can make sure you are prepared and protected.

Types of LLC insurance

LLC insurance coverage can be adapted to your business. Understanding your options can help you make informed decisions about what you need. The following are common business insurance coverages for LLCs:

General liability

General liability insurance for an LLC safeguards your business from third-party claims, including lawsuits, bodily injury, and personal and advertising injury. It is the most popular commercial coverage because it provides broad protection for diverse risks.

Professional liability

Professional liability insurance protects against negligence claims for LLCs that provide advice and services, such as legal and consulting firms. This coverage is also called errors and omissions insurance.

Business owners policy

A business owners policy includes coverage for liability and property. This combination can cover accidents, lawsuits, theft, and more. It's a good fit for LLCs that own or rent physical assets, such as buildings and inventory.

Cyber insurance

Cyber insurance provides LLCs with coverage for data breaches and computer attacks. If your business processes credit card numbers or other sensitive information, a cyber policy can cover a variety of claims and help with data recovery.

Workers' compensation

Workers' compensation insurance covers medical expenses and lost wages for employees who become injured or sick on the job. Many states require it. Learn more by browsing business insurance by state.

Commercial auto

Commercial auto insurance helps cover the costs of accidents, damages, and injuries that happen while using company vehicles. It's important for LLCs that rely on vehicles for their business operations.

How much does LLC insurance cost?

Your LLC insurance cost depends on various factors, including the business size, industry, number of employees, and coverage amount. Be sure to tailor coverage to your specific needs and risks for the most accurate protection.

In many cases, you'll want to get more than one type of business insurance, which can affect your rate. For example, you might need workers' compensation to protect against employee injuries and general liability to cover bodily injury and property damage claims.

Learn more about business insurance cost for LLCs.

How to get LLC insurance

Starting a business insurance quote is the best way to get the coverages your LLC needs. Progressive Commercial allows you to customize your policy by selecting limits, deductibles, and endorsements that fit your needs and budget.

Get a quote online or talk to one of our insurance specialists to make sure your LLC is protected.

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