Why Your LLC Needs Business Insurance
Why Your LLC Needs Business Insurance
An LLC (Limited Liability Company) is an excellent structure for a small or even medium-sized business. It is appealing because it is simple to get started and it can protect the personal assets of the business owner in a liability claim. Some business owners however, make the mistake of viewing this protection as a replacement for business insurance. Here are some reasons why your LLC still needs business insurance.
An LLC Doesn’t Protect Your Business Assets
While an LLC offers protection of your home and personal assets from claims made against the business, your business assets are still at risk. Your cash, inventory, equipment and real estate may be at risk without appropriate business insurance. Even accounts receivable may be attached in a successful claim. This can be difficult if not impossible to recover from.
An LLC Does Not Protect You From Legal Expenses
Even if a claim against your LLC is unsuccessful, it still can lead to significant legal expenses. Without business insurance, these are expenses that will have to be paid out of your cash flow or assets. Business liability insurance however, will not only pay any judgment or settlement, but any legal costs associated with the covered claim.
Even with an LLC, Personal Assets May Be at Risk
Some business owners are not aware that even with an LLC, their personal assets may still be at risk under certain circumstances. For example, if you take out a personal loan or personally guarantee a business loan. If your company is involved in some sort of illegal activity, intentional or not, your could be placing personal assets at risk.
You should not be under the false impression an LLC provides the protection of a well-designed business insurance program. To discuss your business and where you are at risk, we invite you to contact one of our independent insurance professionals. With relationships with multiple business insurance companies, our agents can find a plan to fit your company and budget.
An LLC may provide some protections, but it is not insurance. Connect with us to learn more.
Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder
Search All Blogs
Search All Blogs
Read More Blogs
The Thrill of the Grill: A Masterclass in BBQ Perfection
An ultimate guide to mastering grilling and barbecue, with tips, techniques, and delicious recipes.
The Entrepreneur’s Armor: A Guide to Protecting Your Business
A crucial guide to business insurance, covering essential policies and strategies for entrepreneurs.
The Gift of Security: A Simple Guide to Life Insurance
An easy-to-understand guide to life insurance, explaining policy types and a simple way to calculate your needs.
Hitting the Road Safely: Understanding Your Auto Insurance Policy
A simple guide to auto insurance, explaining coverage, premiums, and tips for finding the best policy.
The Homeowner’s Handbook: Protecting Your Property and Peace of Mind
A clear guide to home insurance, covering policy types, inventory tips, and how to save money.
The Art of the Perfect Pizza: From Dough to Delight
A comprehensive guide to making delicious, restaurant-quality pizza at home, from dough to toppings.
Shielding Your Enterprise: The Small Business Owner’s Guide to Insurance
A deep dive into business insurance, covering essential policies and strategies to protect your company from risk.
Your Legacy, Your Promise: A Practical Guide to Life Insurance
A clear, practical guide to life insurance, explaining term vs. permanent policies and how to calculate your needs.
The Driver’s Blueprint: Demystifying Auto Insurance Coverage
A complete guide to auto insurance, explaining all coverage types and how to get the best deal.
Beyond the Basics: Navigating the Nuances of Home Insurance
A comprehensive guide to home insurance, covering everything from standard policies to essential riders and the claims process.