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Even if you are a limited liability company or LLC, a lawsuit can put your business at risk. LLC owners need business insurance to protect their assets and comply with contracts and laws.
Although you may need more than one type of coverage, general liability insurance for LLCs is a must-have for most businesses. Depending on what you do and where you do it, it may make sense to purchase professional liability insurance, workers' compensation insurance, and other insurance.
The good news is that you can often purchase the LLC insurance you need online in minutes. Most of our picks for the best business insurance for LLCs offer that option in addition to offering convenient packages and great customer service.
What are the best insurance options for LLCs?
Next: Best Overall LLC Business Insurance
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Get a quote and buy insurance online in minutes.
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Access and share your insurance certificate online.
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Next provides some pricing information online so you can get a ballpark figure before getting a quote.
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Why I like it: When you share information about your LLC with Next, the company says it will identify the insurance you need and provide you with a quote within minutes. Additionally, you can complete your purchase online, but call your insurance agent for assistance if needed. You can also access your insurance certificate online and share it if you wish. Read NerdWallet's review of Next Small Business Insurance.
Chubb: The Best Business Owner Policy for LLCs
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You can buy business insurance, general liability insurance, professional liability insurance, and other common types of coverage online.
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BOPs include additional expense coverage, which does not necessarily come standard.
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Why I like it: Chubb offers a simple package of insurance options that small business owners can easily purchase online. A business owner's policy that combines general liability insurance with business property and business interruption insurance also includes additional expense coverage and accounts receivable coverage, but these are not always part of the BOP. Read NerdWallet's review of Chubb Small Business Insurance.
Thinble: Ideal for LLCs that only need temporary coverage
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Policies are available to cover specific events by job, week, or month.
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Thinble's Certificate Manager allows contractors or subcontractors to purchase insurance policies that meet their requirements.
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Why I like it: If you only need insurance for a specific event or job, perhaps taking out temporary insurance may be the cheapest option to meet your contract requirements. Thimble's short-term policy can help. Thinble also offers a program called Certificate Manager that you can use to ensure the contractors you hire have the coverage they need. Read NerdWallet's review of Thinble Business Insurance.
Nationwide: perfect for working with local agents
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Why I like it: Nationwide insurance is sold by independent insurance agents across the country, so you can get hands-on help finding the right coverage. Nationwide received the highest customer satisfaction ratings from business owners in JD Power's annual survey. Additionally, this large, well-established insurance company offers virtually every type of coverage, so your LLC should be able to get all the protection it needs. Read NerdWallet's nationwide business insurance reviews.
Hiscox: Perfect for LLCs with international customers
Strong Points:
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The Professional Responsibility Policy covers work performed worldwide.
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Industry-specific packages make it easy for business owners to identify the coverage they need.
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Get a quote and purchase general liability insurance online.
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Why I like it: Hiscox specializes in business insurance, offering businesses in 180 industries a wide range of coverage options packaged in a variety of ways. Notably, the company's professional liability insurance covers work performed anywhere in the world, but claims must be made in the United States or Canada. Read NerdWallet's review of Hiscox Small Business Insurance.
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What is LLC insurance and what does it cover?
LLC insurance protects your business finances in the event of litigation, property damage, employee injury, and other risks. This can refer to several different types of coverage. These may be sold individually or in packages, such as business owner's insurance.
The basic types of business insurance that an LLC requires are:
General liability insurance
General liability insurance protects your business from personal injury and property damage claims by customers and other third parties.
Who needs it: All businesses are required to carry general liability insurance.
Employer policy
Who needs it: An LLC with property to protect, such as renting space or selling physical inventory.
professional liability insurance
Who needs it: An LLC that provides services to customers for a fee.
commercial auto insurance
Who needs it: An LLC that owns a commercial vehicle and frequently drives it for work or has employees drive it as part of their job.
Worker's compensation insurance
If you have employees, you may be legally required to carry workers' compensation insurance (regulations vary by state). It helps cover medical expenses and lost wages if an employee is injured on the job.
Other LLC insurance coverage
There are many other types of business insurance that protect against specific risks. For example, if you manufacture or sell products, handle sensitive data, or sell alcohol, you may need more specialized protection.
Does an LLC need business insurance?
LLCs, or limited liability companies, are so named to limit the impact of claims on the personal finances of their owners. If your company is sued and found liable or faces bankruptcy, an LLC will protect your personal assets as long as you don't mix up your personal and business finances or break the law. is needed.
But that protection doesn't extend to your business' finances.
For example, if your LLC is responsible for damaging someone's property, causing injury, or making a mistake that results in financial loss, you may have to pay medical bills, settlement fees, etc. . LLC insurance can help protect your business' finances in such cases.
How can I get LLC business insurance?
At NerdWallet, we recommend getting business insurance quotes from multiple insurance companies to find the best coverage for your LLC at the best price.
Purchasing multiple insurance policies from the same provider as a BOP or custom bundle makes the shopping experience easier for busy business owners. Many insurance companies offer discounts when you purchase multiple policies. You will also use a similar system every time you need to file a claim.
Many LLCs allow you to purchase all the insurance you need online through providers like Next, Chubb, and Thimble. However, if your business faces special risks, or you simply need expert support, call a business insurance agent for help.
How much does LLC business insurance cost?
The cost of business insurance for an LLC depends on many factors, including the company's industry, location, and size. Getting a quote from your insurance company is the best way to estimate how much you will pay.
You can often get business insurance quotes online, but you may need to work with an insurance broker or agent to purchase insurance. Working with an agent incurs additional costs. Most brokers and agents are paid on a commission basis, and the broker may also collect a commission. However, it can help you understand what coverage you need.
