Limited Liability Company Insurance
A limited liability company, or LLC, is a business structure in the United States that combines the features of a corporation and a partnership. One of the main advantages of an LLC is that it offers its owners limited liability protection. This means that the personal assets of LLC owners are not at risk if the business is sued or incurs debt. In addition, an LLC is not subject to double taxation, as it would be if it were structured as a corporation.
Limited Liability Company Insurance
Most business owners opt for LLC compared to a sole proprietorship. Separating your assets from that of your business helps you to protect your assets. Every business requires LLC insurance with specific policies to protect the various and diverse needs of the company.
An LLC model of business does not guarantee company protection against liabilities and potential risks. The business owner is still responsible for both actions by the business and the workers.
Cost of LLC Insurance
The cost of insurance for most LLCs depends on the type of business. The number of employees, claims history, and most insurers will use the kind of product or service to compute premiums.
Types of Liability coverage of Limited Liability Company Insurance
LLC insurance protects the business and the business owner from financial loss. Depending on risk level or company needs, it is advisable to consult an insurance agent to ensure the business is fully covered in the event of an accident.
Property Damage Insurance
This policy protects your business property against damages or loss from either natural or man-made disasters like fire, vandalism, theft, floods, among others.
General Liability insurance
Also referred to as business liability insurance, it covers injuries to customers while on your property, false or misleading advertisements. For example use of a person’s photo is an ad without their permission. The policy can help you pay for that claim. It helps pay for medical costs, legal costs, and court settlements and judgments.
Product Liability Insurance
If your business deals with manufacturing, distribution, and selling products, product liability protects your business against liabilities resulting from personal injury or claims from using a faulty product.
Professional Liability Insurance
Also known as E&O, or errors and omissions, protects if a customer sues due to your services or advice. For example, medical malpractice can cost you financial loss—the insurance covers legal costs associated with the claim.
Directors and Officers insurance
D& O or directors insurance covers the company officers and directors from liability. For example, if a director is named in a legal suit, it helps pay for specific legal costs and damages.
Worker’s Compensation insurance
Worker’s compensation insurance is required for all types of businesses. It protects the business pay medical costs from an injury or loss of wages of an employee who is injured while at work.
You can save your business save on LLC insurance but getting the right program for your business. It ensures your business is covered with the right insurance.