Do I need business insurance for my LLC? That’s a question many people ask themselves before they start their first business. The answer is that it depends on the size of your company, what type of industry you’re in, and what state you live in. This article will discuss when you might need to purchase insurance for your small business.
The main reason you might need insurance is to protect yourself and your business from liability lawsuits. There are many types of insurance policies that can help with this, but the two most common ones for small businesses are general liability coverage and commercial property insurance.
General Liability Insurance covers any claims arising out of negligence or improper carelessness on behalf of an insured party.
Commercial Property Insurance covers the cost of damage to buildings and personal property due to events like vandalism, fire, windstorms or hail.
You need to protect your business assets with insurance
Businesses should always protect its assets by carrying general liability insurance. Liability means that if someone gets injured on your property, and sues you for the injuries they sustained while visiting or working at a business establishment, then all of the company’s listed resources may be used to pay off this injury claim until it is completed up to court ordered damages. This could put any personal savings into jeopardy because these claims can exceed what an individual would have saved over their lifetime in most cases! This coverage is extremely important for any business or company.
This type of insurance usually protects the building, grounds and equipment from physical damage caused by anything other than fire, lightning or earthquakes. It also covers property damage from losses due to theft and vandalism as well as cover liability claims. Insurance policies are not “one-size-fits-all
Types of small business insurance policies include:
- general liability insurance
- commercial property insurance
- professional liability insurance
- workers compensation insurance
- business auto insurance
- cyber liability insurance
- umbrella liability insurance
- errors and omissions liability insurance
Your personal assets could still be at risk
A number of scenarios can lead to a lawsuit against your business that could put you in jeopardy. If you don’t keep the company’s assets separate from personal property, or if it is personally guaranteed with loans and lines of credit for the company, lawsuits will be levied on both areas which are equally liable. Even more worrisome is when an activity was not illegal but deemed so by authorities after-the-fact; this would nullify any safeguard between home and investments since they were technically never “safe.”
While an LLC is a good start to protect your business, a small business owner should consider getting started with a business owner’s policy or at minimum a general liability insurance policy to help provide defense for legal costs from potential claims history.
Need help choosing what insurance company to consider for your small business insurance coverage from on of the following:
- AmTrust Insurance
- Guard Insurance
- Hartford Insurance
- Markel Insurance
- Nationwide Insurance
- Pie Insurance
- State Auto Insurance
- Travelers Insurance
You’ll incur costs if you are sued, even if you are found not to be liable
Business owners should be aware that they can get sued for just about anything, even if it’s not their fault. A lawsuit will require you to hire a lawyer and take time off from work in order to go through mediation or court proceedings; the verdict could also damage your reputation. To fully protect yourself against any potential legal troubles, invest in business insurance by buying general liability coverage – this is protection against claims of bodily injury or property damage caused by another party while on premises owned by your company.
– You’ll incur the financial burden of your own legal defense costs if you are sued, even if you are found not to be liable. While a limited liability corporation structure can protect your assets you still responsible for the legal advice or defense should you be sued.
– A lawsuit will require you to hire a lawyer and take time off from work in order to go through mediation or court proceedings; the verdict could also damage your reputation. To fully protect yourself against any potential legal troubles, invest in business.
Get Small Business Insurance today!
Make the smart decision and get covered now before anything happens! It’ll only take a few minutes of your time and will save you from having to worry about what would happen if an accident occurred without insurance coverage. Plus, we offer amazing customer service in case any questions or concerns arise while going through the process of getting coverage for your limited liability company.
Protect your business by contacting your friends at Business Lion Insurance at (816) 239-3606
Get started with our easy-to-use online application here: https://businesslion.insure