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The answer to this question is a straightforward one, and it’s one that could have significant consequences for the future of your business. In the world of entrepreneurship, unexpected events can happen, and they can happen fast. One misstep could mean the difference between success and failure. That is why it’s essential to consider insurance to protect your investment.
So, do you really need business insurance for your LLC? The answer is yes.
Let’s dive deeper into this critical topic and explore what types of coverage you should consider.
In a Limited Liability Company, the business itself is typically the entity that obtains insurance coverage and provides coverage for the owners, employees, any business property or other assets used to run the business. This type of business structure combines the liability protection of a corporation with the tax benefits and flexibility of a partnership. The Legal entity of the LLC is separate from its owners generally protecting personal assets. Even though you created an LLC and purchased commercial insurance it may be necessary for owners or employees to purchase their own individual insurance policies for extra personal asset protection.
Each insurance policy will have coverage for an array of risks and liabilities based on the industry your business falls under. It is important when you talk to an insurance agent to give a detailed description of your operations so you can properly protect every aspect of your business. Insurance covers evets that arise out of the operation of your business that result in a liability exposure, bodily injury or property damage. Each industry will have different risks and even laws or regulations that dictate what insurance will cover.
Insurance provides a dollar amount of coverage for different types of events. You will see this referenced in your insurance policy as limits of liability. Commercial Insurance Products are broken down into different polices that protect the various events a Limited Liability Company can experience.
Below is a list of policies every LLC should have and how they protect your business.
Commercial general liability provides coverage for slips, trips or falls and other liabilities while people are on your property or while doing business together. Property damage can also be added to this policy. Adding protection for property that you own and use for business. This is a must have policy if you are an LLC, it provides basic levels of coverage that you can modify depending on the needs of your specific vertical.
This policy protects against injury or illness of an employee related to your business. It provides medical benefits and income protection and can protect an employer from lawsuit. (This coverage is often required and regulated by the state, please confirm with your states labor department) If you have or hire employees in your LLC you need Workers Compensation. It is best to confirm with an insurance agent, such as the ones here at Insure Your Company. They can easily tell you what coverage is mandatory and how insurance will protect your LLC.
Professional liability insurance (or Errors & Omissions insurance) protects your limited liability company if it is sued for negligence or other errors related to the services you provide. Designed to cover the cost of legal defense, settlements and judgments that may arise from such claims. This coverage is essential if you provide a professional type of service.
Cyber-attacks are an ever-present threat to businesses of all sizes and their effects can be devastating. Cyber liability insurance provides coverage options to help protect your company from data breaches and other cyber security issues. Lost data, lost devices, lost money, notification requirements, and forensics are all potential liabilities facing your business. Cyber insurance can help.
Third Party and First Party Fidelity Crime Bonds protects your business when a criminal act is committed by a third party or first party depending on the type of policy. Crimes like embezzlement, Fraud, forgery and theft of money or property can be covered.
Commercial property insurance protects your LLC’s physical assets such as your building, equipment, inventory or other property that is essential to your business from covered events like fire, theft or natural disaster. The insurance coverage will help repair or replace your property after a covered event.
This insurance is designed to protect business including LLCs, from accidents involving vehicles used for business purposes. Commercial auto coverage includes Liability, physical damage, medical payments, underinsured/uninsured motorist. To obtain a commercial auto policy the vehicle must be registered to the LLC.
Also known as business interruption insurance, it provides financial coverage for lost income and expenses when your business is temporarily unable to operate due to a covered event. Events like fire, natural disaster and other unforeseen acts can leave your LLC shut down for an unknown period of time. Coverage can also help provide rent, utilities, employee salaries and other additional cost with getting your business back up and running.
Having business insurance is crucial for safeguarding you company against life’s uncertainties. While it is not a legal requirement for operating an LLC, not having insurance can leave you vulnerable to the unexpected mishaps. When crisis strikes, it often hits hard and fast, and an LLC is not immune to this. Whether it’s a natural disaster or a lawsuit against your business, you must prepare for the worse-case scenario.
While it is easy to create and maintain an LLC you can still be liable for damages resulting from a lawsuit or personal injury. This is why business insurance is as the best solution to protect your LLC, Your personal Assets, and your success. By investing in insurance, you can have peace of mind knowing your business is secure and you don’t have to bear the financial burden of unforeseen events alone.
It’s Important to note that the specific coverage and limits of all commercial business insurance will vary depending on the policy you choose, so it is important to review your policy carefully to understand exactly what it covers.
InsureYourCompany provides comprehensive Technology Business Insurance solutions to protect your company from potential risks and liabilities. Our policies are tailored to meet the unique needs of your technology-based business. Request a free quote today and ensure the future success of your company.
We believe in supporting our clients through every step of the insurance process. From choosing the right coverage to filing a claim, we are here to offer guidance and support. Request a free quote today and get coverage that meets your unique needs.
