Most LLCs start with general liability insurance. Many also choose a Business Owner’s Policy (BOP), which combines liability and property coverage. Depending on your business, you may also need workers’ compensation, professional liability, or commercial auto insurance.
FAQ_category: (HIDDEN) Industry FAQs
You should insure your LLC. While forming an LLC separates your personal and business finances, it doesn’t protect against all risks. Insurance helps cover lawsuits, claims, and operational losses tied to the business itself.
Most business owners need workers’ compensation insurance if they have employees, since it’s required by law. Many also carry general liability insurance to cover injuries and property damage, along with property coverage for equipment and buildings. Service-based businesses may also need professional liability insurance.
Workers compensation insurance means a type of business insurance that covers medical expenses, lost wages, and disability benefits when an employee is injured or becomes ill because of their job. It also protects employers from lawsuits and is required for most businesses with employees in many states.
Workers comp insurance for a small business usually costs $500 to $3,000 per year. The exact cost depends on your industry, payroll size, location, and claims history. Low-risk businesses pay less, while high-risk industries like electricians pay significantly more.