If you have already taken steps to set your business up as a limited liability entity, it may feel like most of the necessary legwork is done. You have separated your personal assets from your business profits, so some may think that the extra step of LLC insurance may not be necessary.
What is LLC Small Business Insurance?
LLC small business insurance refers to coverage that is specifically drafted to protect your various assets. Coverage is provided for damage after accidents on your property and injuries that are caused to others. It’s best to pick the coverage that suits your unique needs: if you are running a food service with a small fleet of cars, a commercial auto policy would be ideal.
Which Aspects of my Venture are Covered by LLC Small Business Insurance?
Offering compensation for financial losses is the main objective here, as the money a business brings in daily or monthly is essential for survival. There are a few different types of small business insurance that we can assist you with here at Alexander Insurance.
Business Owners Policy for LLCs
A business owners policy is a bundled insurance package tailored for small businesses. These are excellent options for LLCs because they cover a wide variety of risks you will encounter. Business owner policies are usually bundled conveniently with one of these three policy types:
- General Liability Insurance provides the necessary coverage for accidental injuries and any property damage to others. You won’t have to worry about legal costs, invasive settlements, and judgments if anyone takes legal action against you. This type of coverage is useful for property owners, as so many things can happen when individuals reside or do business at your operation site every day.
- Commercial Property Insurance will cover damages to your property. This could include the desks and furniture inside, your sales inventory, and forklifts or snowplows. During 2022 there was a massive spike in fires nationwide, as dry weather threatened homes and businesses in entire states for days on end.
- Business Interruption Insurance allows you to keep operating if you must temporarily shut down. Rent for a makeshift location, necessary salaries due, and other incidentals will be taken care of with this coverage.
- Commercial Auto Insurance is ideal if vehicles are used constantly for work-related tasks and is a must in many situations. The obvious scenarios are grocery delivery and ventures such as Uber, but other businesses such as contractors and stocking crews are changing locations throughout the day and constantly on the go as well.
- Workers Compensation Insurance is required in most states the moment you obtain a non-1099 contractor employee on a W2. This can help you cover costs such as pertinent medical bills, lost wages, and other expenses that you encounter after sudden workplace injuries. The last two years have also brought about a grave concern for mass illness protection, most often provided with this type of coverage.
- Professional Liability Insurance is also commonly known as errors and omissions insurance and is crucial for any LLC that provides consulting, financial, and counseling services. Professional mistakes are made even with the best of intentions, and professional liability insurance will pay for items such as a replacement or materials needed for a job not quite completed up to par.
- Product Liability Insurance is a good idea if your LLC is involved in the manufacturing, creation, or distribution of any type of tangible good. This will aid you if litigation occurs if your patented or vended goods cause injury to anyone or damage to property.
Is all This Extra Coverage Really Necessary?
There are many situations where LLC small business insurance is a more pressing need. Contracting, manufacturing, and agriculture all have a factor of risk that is unavoidably perilous with the general public’s penchant for litigation. Even if your business has a bit lower risk such as bookkeeping or freelance writing, it’s a good idea in case anyone decides to target you for a frivolous lawsuit. It’s not always character defamation that is on the table, as anything delving into the depths of either political party can raise eyebrows in a hurry.
Many businesses can operate smoothly and profitably for quite some time without suffering a lawsuit, but if you are, the retainers for defense attorneys can be crippling. If you do not have the funds on hand to quickly replace expensive equipment or come out on top in court, the peace of mind that coverage will give you is worth the monthly premium. Some of the factors that decide how much your insurance will cost are your deductible amount, your claims history, the amount of coverage you purchase, and the number of employees on your payroll.
How do I get the Process Started?
You’ll be able to enjoy the benefits of small business insurance after completing just a few simple steps:
- Estimate Just How Much Coverage is Needed: A business owners policy is an excellent starting point to assure that you are covered protectively and functionally. After you feel that you have a solid foundation to work with, you can progress to additional coverage as needed.
- Compare, Compare, Compare: We wish that your choice ultimately is with us as your provider here at the Alexander Insurance Agency of St Charles, but it is necessary to look at all of the options to decide on your ideal fit. Keep in mind that some of the specials run by large corporations have fine print that needs to be adhered to, and “the grass is always greener” rule applies as with many other services.
- Convenience and Functionality Factors of Bundling: You may have to combine several different coverage types to provide ideal protection for your LLC. You can also enjoy the benefit of a sizeable discount by securing multiple policies from the same provider. As this process allows you to make one simple phone call for multiple types of occurrences, it also poses the sensible benefit of a building sense of trust and familiarity with the experts looking out for you.
- The Wise Choice of Cutting Down Your LLC’s Risk Factor: There are many creative ways to discount your business insurance cost and taking steps to make things safer at your work site comes highly recommended. Steps such as installing security alarms are a great start but going deeper and addressing your exposure to cybercrime helps too. Policies such as developing an inclusive employee handbook also display to your insurance provider that you can improve your chances of not suffering a breach of any type. Once you can streamline safety and security, the chances of you needing to file numerous claims go down significantly.
Choosing to go into business for yourself can be one of the most rewarding endeavors you will ever set out to accomplish! Feeling unprepared when storms of various types can affect you is an uneasy and nerve-wracking element to go through, and we are standing by to assist you with your LLC business insurance needs. Long-lasting partnerships and annual reports on your behalf that are positive are the type of satisfaction we aim to provide while seeing you through the moments that reward your perseverance and thorough preparation.