Entrepreneurs commonly select the LLC or limited liability company as their business structure. There are various tax advantages you can get with an LLC and setting one up can be fairly easy. However, the common confusion that business owners have is what type of insurance they should select for their company to assure they can protect the assets and employees under the LLC.
Here we have a few business insurance coverage options you should consider looking into for your LLC.
General Liability Insurance
With the general liability insurance, you can cover the legal expenses of your company and employees in the event of a lawsuit. This type of business insurance also includes coverage for any damages that are awarded. Types of lawsuits that fall under general liability include premises accidents, personal or bodily injury, and property damage that occurs as a result of your business operations (or employee action/inaction while at work).
Malpractice, Errors & Omissions, and Professional Liability Insurance
It is important for you to have professional liability insurance for your LLC is your company is providing any services related to professional advice, health, or quality products. Although it may have many names depending on what industry you are in, professional liability insurance helps protect you and your business in the event that you, your service, and/or your product do not live up to client (or promised) expectations or it causes them harm.
One of the most important insurance policies that you should consider having for your LLC is the property insurance. We all know that constructing or buying commercial buildings is not an easy task. As well as your building can get damaged because of various reasons which can be a flood, fire or you can get robbed. You will be relaxed if you have property insurance to cover all the expenses. Make sure that while buying the insurance you get enough coverage that can easily cover the cost of damage you have suffered from. Otherwise, you will have to pay for the damaged property from your own pocket.
Loss of Income Insurance Coverage
Most of the companies make sure to get insurance for their equipment, structure, and employees. However, they often forget that having insurance for potential loss of income is also very important. If you are forced to close due to a covered event (like a hurricane or fire) then the loss of income coverage can help provide you with enough coverage to restart your business once again. It will allow you to pay rent, payroll, inventory invoices, and an array of other bills to keep you from going out of business.
Insurance Coverage For Employees
When you hire employees for your company it is important to verify with state laws which specific types of insurance you must provide to your workers. One of the most common required by law is Worker’s Compensation Insurance. This type of insurance will provide them medical and lost wages coverage in the event they are injured during the job. This includes physical and mental injuries.
Other types of insurance or coverages you may need to be paying for include Health Insurance and Disability Insurance.
Contact an independent business insurance agent at Magruder Insurance Agency to discuss all of your LLC needs and to ensure you are in compliance with all laws regarding insuring your new company.