Insurance for an LLC

As an owner or “member” of an LLC, you have probably done your due diligence when it comes to researching what your business needs. From industry trends to ways to protect yourself and your business, you’ve likely invested many hours into your company. When it comes to managing your risk, you need someone who understands the time and commitment that you have poured into your business and who will listen to your needs. At Cross Insurance, we’ve been insuring businesses of all sizes throughout the Northeast since 1954.

What is an LLC and Why Does it Need Insurance?

A Limited Liability Company (LLC) is a business structure that offers limited liability protection for its owners, also known as “members.” Members of an LLC are typically drawn to the idea of an LLC as it provides a legal separation between a business and its owner(s).  Generally speaking, and with a few exceptions, this means that the member(s) of an LLC cannot be held personally liable for the debts or liabilities of the company.  

Although your LLC helps to separate your business from your personal assets, this doesn’t mean your business is free from risk – the company is a legal entity that will be legally responsible for its own debts and liabilities. Many LLCs are small businesses which may not have the financial strength to cover the costs resulting from a claim, making insurance for your LLC an important business measure.

Insurance Quotes for Your LLC

If you are looking to get a quote for your LLC, reaching out to us is as simple as filling out this form. Calling one of our offices is also a great way to start the quoting process, and you can find a list of all our offices here. From there, a member of our team will connect with you to get more details on the size and nature of your LLC and the types of insurance plans you may be interested in.

What Coverages Should Your LLC Have?

 The following non exhaustive list describes certain types of insurance coverages that you may want to consider for your LLC.

General Liability

General liability insurance helps to provide your LLC with protection for certain third-party liability claims related to your business’s operations (for instance, if someone was injured as a result of a trip and fall accident at your business’s location). Some general liability policies also include coverage for certain types of personal and advertising injuries, such as claims for defamation or copyright infringement.

Commercial Property

Commercial property insurance can help protect your LLC against certain types of physical damage to your building and the contents within. Whether you own the building or lease the space, commercial property insurance is highly recommended. The following are some of the assets commercial property can help insure:

• Your businesses building
• Your furniture, such as tables and chairs
• Your inventory
• The equipment that your business runs on, like computers, forklifts, ovens, etc.
• Outdoor signage, banners, and other materials

Additional Coverages to Consider

Professional Liability

Also known as Errors and Omissions (E&O Insurance), Professional Liability can help protect you if a client believes a mistake you made caused them financial loss and decides to sue you. Some examples of situations that could expose your business to professional liabilities include negligent acts or omissions, a missed deadline, and inaccurate advice resulting in damage to a client.

Workers Compensation

If your LLC has employees, depending on the location of your business, workers’ comp may be required. The cost of workers’ compensation will vary depending on how many employees you have, as well as what kind of work that they do. To request a quote for workers’ comp coverage, you can fill out our form here.

Commercial Auto

Commercial auto coverage is important if your business owns or uses automobiles as part of its operations – for instance (and without limitation) using vehicles to transport goods, to provide services to customers, or for workers to travel to or from different worksites or locations during the workday. Regardless of whether you are transporting food as a catering business or traveling to a jobsite as a commercial cleaner, if you are involved in an accident, your company could be held liable. A commercial auto policy can cover your company if a covered vehicle is damaged or broken into as well. Commercial auto policies typically have higher coverage limits than personal policies. If you already have a commercial auto policy in place, reviewing it with a local agent to see if it appropriately covers your business is a smart move. It should also be noted that state regulations will determine how much coverage your business will need.

How Much Does Insurance Cost for Your LLC?

What you might pay per year to cover your LLC depends on a variety of factors. Some of these include the types and amounts of coverages that you select, the nature of your business, the number of employees you have, where your business is based out of and where it operates, and the equipment you use. If your LLC has grown, you may want to think about increasing your coverage limits. Reach out to your local office to request a quote based on the needs of your business.

Ways to Potentially Save on Insurance for Your LLC

One way you could save on insurance for your business is looking into a BOP. Typically, a BOP, or business owner’s policy, bundles two common coverages for businesses together- commercial property insurance, and general liability insurance. If you are looking to select these coverages, a business owner’s policy may be more cost effective than purchasing these coverages separately.

Recap

Some common coverages that you may want to consider for your LLC include, without limitation, general liability, commercial property, commercial auto, and professional liability. If you have employees, you will likely need workers’ compensation coverage as well. You’ve worked hard to grow your LLC – let us help you protect it properly. Give us a call, today!

 

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This article is for general informational purposes only and is not to be relied upon or used for any particular purpose. Cross Insurance shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, insurance, accounting or other professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article are that of its author and do not necessarily represent the views of Cross Financial Corp. and its subsidiaries and affiliates (“Cross Insurance”) or Cross Insurance’s management or shareholders.