Small Business Insurance for LLC – Comprehensive Guide

Running an LLC offers legal protection for your personal assets, but it doesn’t fully protect your business. Insurance helps safeguard your company from financial loss due to lawsuits, accidents, cyber incidents, or property damage.

Essential Types of Insurance for an LLC

1. General Liability Insurance

Protects your LLC from third-party claims such as bodily injury, property damage, and personal or advertising injury. It typically includes legal fees and settlements.

2. Business Owner’s Policy (BOP)

A bundled package that includes general liability, commercial property, and business interruption insurance—ideal for small businesses with physical assets.

3. Commercial Property Insurance

Covers your physical assets such as buildings, equipment, and inventory against risks like fire, theft, vandalism, or natural disasters.

4. Business Interruption Insurance

Reimburses lost income and operating expenses if your business is temporarily unable to operate due to a covered event like fire or storm damage.

5. Workers’ Compensation Insurance

Mandatory in most states if you have employees. It covers medical costs and wage replacement for workers injured on the job.

6. Professional Liability (Errors and Omissions)

Protects against claims of negligence, mistakes, or failure to deliver a service as promised—essential for consultants, advisors, and service providers.

7. Commercial Auto Insurance

Required if your LLC owns or uses vehicles for business. Covers liability, collisions, and damage. Personal auto policies usually don’t cover business use.

8. Cyber Liability Insurance

Protects against data breaches, ransomware, and other cyber threats. It covers notification costs, legal fees, data restoration, and PR management.

9. Commercial Umbrella Insurance

Adds extra liability protection beyond the limits of your existing policies (such as general liability or commercial auto). Good for high-exposure businesses.

10. Employment Practices Liability Insurance (EPLI)

Covers legal costs if an employee sues your business for discrimination, wrongful termination, harassment, or similar workplace issues.

11. Key Person Insurance

Pays out if a vital team member dies or becomes disabled. Helps cover the loss of leadership, revenue, and costs related to hiring a replacement.

How Much Does Insurance for an LLC Cost?

Costs vary by industry, business size, location, and risk exposure. Here’s a general breakdown:

• General Liability: $25–$115/month

• BOP (bundled coverage): $40–$115/month

• Professional Liability: $45–$165/month

• Cyber Insurance: $40–$145/month

• Workers’ Compensation: $35–$575/month, based on payroll and risk

• Commercial Auto: Varies widely depending on vehicle use

Bundling policies, raising deductibles, and paying annually can reduce premiums.

How to Choose the Right Policies

1. Assess Risks: Evaluate your services, assets, staff, and exposure to lawsuits or data loss.

2. Identify Legal Requirements: Check if your state mandates coverage like workers’ comp or commercial auto.

3. Compare Multiple Quotes: Pricing and coverage vary between carriers.

4. Bundle Policies: BOPs and multi-policy discounts can reduce your overall cost.

5. Review Annually: As your business grows, so do your coverage needs. Adjust accordingly.

Summary Table

Call to Action

Choosing the right insurance for your LLC doesn’t have to be overwhelming. We work with nearly 100 insurance carriers to find the perfect policy for your business. Fill out the form below — get your personalized quote today. It’s fast, secure, and tailored to your needs.