We get it.
Nobody likes paying insurance premiums, least of all small business owners. After all, most small businesses are strapped for cash to use as operating funds. The last thing that you want to do is tack on an extra expense like insurance that may or may not ever payout.
However, if you don’t have insurance and the worst-case scenario were to materialize in your business, then you’d be kicking yourself for it.
In this article, we’ll answer the question of does an LLC need insurance and what types of business insurance it needs.
Does an LLC Need Insurance?
The short answer to this question is a resounding YES! Your LLC does indeed need business insurance.
You may have heard that a limited liability company structure protects your personal assets from liability. While that is true, that doesn’t mean that the business assets are protected in cases where insurance would be required.
The right kind of business owners insurance will ensure that business assets are not given up should you ever get sued.
What Kinds of Insurance Do I Need?
There are several kinds of insurance policies that you can opt for. Some of them may be governmentally-mandated in your region. Be sure to check with local ordinances to see if any of these policies are required for your small business.
The first kind of insurance is liability insurance. This protects your company in the event of a product or service causing harm to a customer. For instance, if you sell heavy industrial equipment that injures a customer, then liability insurance will save your company when the medical bills come calling.
Another type of insurance to be thinking about is workers’ compensation insurance. If your business is in an industry hazardous to employees, then you may have a lot of workers get hurt on the job. When they get hurt, there are several things you may be liable for.
First of all, you’d be on the hook for any medical bills. Depending on the severity of the workplace accident, this could be hundreds of thousands of dollars. On top of that, you may also need to pay for mental and emotional damages and any loss of wages because the employee is no longer able to work. The right workers’ compensation insurance will pay all of that out for you according to your policy limits.
How to Get Business Insurance, Made Simple
Now that you know the answer to the question of does an LLC need insurance and what kinds of insurance options are available to you, all that’s left is for you to figure out how to get an insurance plan.
This is the simplest part. Once you know what insurance policies you’d like to opt for, just research online for insurance programs near you and get quotes for the relevant policies.
There you have it. For more business advice, be sure to take some time to check out the rest of the articles available to read on the website!