How to get LLC insurance in 5 easy steps
Opening a small business can take many shapes and forms, and many entrepreneurs opt to form their new organization as a Limited Liability Company. This structure separates your business assets from your personal assets and, in the event of overwhelming debt, you can rest assured that your home, car, and personal bank account will probably be just fine.
But simply forming an LLC may not be enough to provide financial peace of mind, because your small business may be sued or held responsible in the event of an unexpected accident or mistake. Most LLCs find that they can remain operational no matter what happens when they have LLC insurance coverage. Let’s learn more about this type of insurance and how it can be imperative to your success.
What kind of business insurance do I need for my LLC?
Every company is different, and while some business owners may find that they require several robust small business insurance policies due to their specific industry, others could be just fine with a lesser amount of coverage. Ultimately, your business needs will dictate what makes the most sense for you, but, in general, most small business owners enroll in at least one of these types of business insurance.
General liability insurance
Does your small business require that you deal with customers or vendors? Just about every company out there has to interact with another human at some point and could probably benefit from enrolling in general liability insurance. Also known as business liability insurance, it helps to protect your company in a variety of situations.
Let’s say you run a small retail store, and your only employee forgot to put out a wet floor sign after mopping. A customer comes into your business and slips, spraining their wrist as they try to catch themselves. Not only do they sue you for medical expenses, but they’ve also been forced to miss weeks of work due to their injury and want you to pay for their lost wages and emotional distress. Just your luck. They happen to be a highly paid professional, and the compensation they’re asking for is a pretty big number.
Or, what if your passion in life is running a commercial cleaning business and you’ve just landed your first big client. As you’re performing your usual cleaning tasks, you discover that one of the cleaning products you used interacted with the office carpet and has left a noticeable discoloration. It might not sound like much, but your client is treating it as property damage and is suing you for the cost of replacing the carpet. As a new business, you barely have enough funds to make ends meet, let alone handle this challenge.
While general liability insurance covers a gamut of situations, including medical expenses, advertising injury, third-party property damage, and bodily injury, it’s not a one-size-fits-all type of insurance. If you were to encounter a scenario where your own property became damaged, you were in an accident using a business vehicle, or you were sued because of a professional services error, your general liability policy likely won’t help.
Required by almost every state in the country, workers’ compensation insurance is essential for an LLC. Not only will a small business run the risk of paying steep fines should they fail to comply with their state’s workers’ comp laws, but the larger ramifications of dealing with a workplace injury when this type of protection is not in place could be crippling.
Unlike a sole proprietorship, running an LLC typically means that you have at least one employee. No matter what industry you’re in, the chance of a work-related injury is always possible, and it doesn’t take much for a small injury to become very expensive. Let’s say you operate a small dog care business, and during their shift, an employee is badly bitten by one of the animals. Without the liability coverage that’s associated with workers’ comp, you’d probably be held responsible for your staff member’s medical bills and repayment of lost wages while they recover.
Some small businesses may be able to operate without much in the way of insurance, but there’s a strong likelihood that you’ll be required to enroll in this type of policy. Even if your state doesn’t require workers’ comp coverage, it’s a smart idea to consider if you’d be able to cover the costs associated with a workplace injury.
Instead of filling out a long application for coverage, many business owners opt for purchasing workers’ comp coverage online as it’s typically very straightforward. Curious about how much this insurance might cost? You can start by getting a free and easy estimate in about 60 seconds.
Professional liability insurance
Another popular type of LLC insurance coverage is professional liability insurance, also referred to as errors and omissions coverage. While it’s similar to general liability protection in that it kicks in to help you pay for the costs associated with an unexpected situation, the scenarios in which business owners may file a professional liability insurance claim are quite different.
One of the most common industries where this insurance is used is within the healthcare field, and it’s often referred to as malpractice coverage. While physicians need this protection, other smaller businesses like a physical therapy office can also benefit. You may have a patient who sees little to no progress after working with you for some time and could decide to sue you in a moment of frustration. Your professional liability policy may cover the cost of your legal defense.
Some business errors are more concrete and result in measurable losses, making it all the more essential for your company to enroll in professional liability coverage. If you run an accounting business and discover that you made a mathematical error that cost one of your clients thousands of dollars, you may run the risk of a lawsuit. Instead of paying for legal costs out of your business bank account, your professional liability insurance policy would kick in.
This type of coverage addresses various tangible and intangible circumstances, including copyright infringement, libel, negligence, or slander. Most small business owners tend to enroll in professional liability insurance and general liability insurance to protect themselves from most situations that could arise.
Additional insurance options
Depending on your chosen industry, your business could benefit from even more types of protection. Some individuals enroll in commercial auto insurance if they or their employees spend a lot of time on the road in a company vehicle. Others opt for a Business Owner’s Policy (BOP) which packages general liability, business property, and business interruption protection into one convenient policy.
How much does LLC insurance cost?
After forming an LLC, the last thing you probably want to do is fill out more paperwork or spend another penny on anything related to your business. While starting an LLC can be expensive, especially in some states like California, small businesses literally can’t afford not to be protected.
You must start by getting insurance quotes before making any purchases, as premiums will vary among insurers nationwide. Not only will the price you pay differ from insurance agent to insurance agent, but a range of factors also go into your final cost, including the services you provide, the location of your LLC, and even your projected annual revenue.
Small business owners can get quick and free quotes for all of their insurance needs with Huckleberry and see exactly how much LLC insurance will cost them.
Get LLC insurance in minutes by following these steps
Enrolling in LLC insurance is quick and easy with Huckleberry, as business owners only need to answer a few questions before receiving an online quote. Here’s how to get started:
- Visit Huckleberry.com and click on the “Instant Estimate” button. It’s completely free to get your quote and only takes a few minutes.
- Enter your industry so Huckleberry can customize your quote based on your specific day-to-day business needs.
- You’ll need to provide a few pieces of information about your business, including its location, how much you estimate your payroll expenses to be over the next year, and what your projected revenue looks like.
- In just a few minutes, you’ll receive a quote for small business insurance that includes everything you’re looking for.
- In a rush? Use our quick rate estimator to get a general idea of what you’d pay for business insurance. Remember, your insurance requirements may differ from other small businesses, even those in your industry, based on your company’s unique characteristics. It’s best to get a customized estimate so you can see exactly how much you’ll save on your coverage.
Running an LLC is no small task, but at the end of the day, you know that your business structure saves you from being personally liable for company debts. Small business owners can continue that protection by enrolling in LLC insurance designed to safeguard your company during any number of unexpected situations.
No matter the size of your business or the industry you’re in, there’s a small business insurance option that’s right for you. While nearly all companies are required to enroll in workers’ compensation coverage, you can boost your financial security by opting for general liability insurance, professional liability insurance, and more.
Visit Huckleberry today for a free online quote and learn more about the insurance options that would best meet your business needs. There’s no obligation to enroll and, by answering only a few simple questions about your company, you’ll be surprised to see just how much you can save on your policy.