Important business protection for any limited liability company (LLC) is LLC insurance coverage, a popular part of our Greensboro business insurance offerings. Many companies are registered as LLCs as a means for separating business assets from personal assets, but the business itself still faces a number of risks and LLC insurance protects them from many financial losses when those potential risks become realized.
A comprehensive Greensboro business insurance policy can protect your company from many different liability situations caused by:
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- Products you either manufacture or distribute
- Employees who either do something improper or fail to do something they should have done
- Your physical business premises, such as when someone trips over a loose wire, falls and breaks an arm
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What LLC Insurance Covers
LLC insurance coverage is designed to protect your business from financial losses stemming from liability claims made against your company. The two most important types of LLC insurance include:
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- Professional Liability Insurance – protects you and your company if a client or customer sues you for an error made in the delivery of your services. This coverage is also known as Errors and Omissions Insurance
- General Liability Insurance – also called business liability insurance, this coverage helps protect you from losses caused by someone suing your business for alleged bodily injury or property damage. Some situations where this coverage comes into play include: (1) a client or customer slips and falls in your establishment and sues you for medical costs, (2) your employee accidentally damages a customer’s home who then charges you for repair costs required to fix the damage, (3) you accumulate costs defending your business in any lawsuit or, (4) you’re required to pay a settlement or a judgement levied by the courts in a lawsuit.
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You’ll also be covered for reputational harm stemming from malicious prosecution, libel, slander, or violating someone’s privacy.
Who Needs LLC Insurance Protection?
According to a five-year study involving small business insurance claims from more than a million policyholders, it was found that four out of ten small business owners will likely experience either a general liability or property liability claim within the next 10 years. As LLC insurance goes, it’s better to have it and not need it than it is to need it and not have it! Liability can be expensive and one big claim can spell disaster to the unprotected. Ask yourself if it’s worth the risk.