What Is the Best Business Insurance for a Small LLC? | NJM

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What Is the Best Business Insurance for a Small LLC?

Depending on the needs of your business, you may want to consider the following types of insurance:

  • Business income:
    Provides protection for lost net income; mortgage, rent, and lease payments; loan payments; taxes; and employee payroll. Requires that the damages be caused by a covered loss resulting in physical damage to the property.

  • Businessowners policy (BOP):
    A policy that combines property, liability, and business interruption coverages for small- to medium-sized businesses. Coverage is generally less expensive than if purchased through separate insurance policies. A BOP may also provide coverage for your tools and small equipment.

  • Commercial auto:
    Commercial auto insurance covers the cost to repair or replace vehicles (less depreciation) in the event of an accident, as well as the cost to rent a replacement auto so that your business can continue operating.

  • Commercial general liability (CGL):
    Insures against the liability exposures of many businesses. Coverage includes product liability, completed operations, premises and operations, and independent contractors.

  • Commercial umbrella:
    Provides greater financial protection by increasing the liability limits of underlying policies.

  • Employment practices liability:
    Liability coverage for wrongful termination, discrimination, and other violations of employees' legal rights.

  • Errors and omissions:
    A professional liability policy protecting the policyholder against negligent acts and omissions that may harm their clients.

  • Workers' compensation:
    Pays for medical care and physical rehabilitation of injured workers and helps to replace lost wages while they are unable to work. Your insurance company may also provide resources designed to assist you in developing safe working habits to help control insurance costs.

Before deciding which policies are best for your business, be sure to contact a licensed business insurance broker or agent, who can provide more detailed information, help solicit quotes from insurers, and answer any questions you have.

An independent agent can help business owners understand which products can best meet their needs.

The information and descriptions on this site are general in nature. The coverage afforded for a particular loss depends on the specific facts and the terms, exclusions, and limits of the actual policy. Nothing on this site alters the terms or conditions of any policy, as the policy controls coverage. Coverage options, limits, discounts, deductibles, and other features are subject to underwriting criteria, state availability, and effective dates. Coverage provided and underwritten by NJM Insurance Company and its subsidiaries, 301 Sullivan Way, W. Trenton, NJ 08628.

The information contained in this article should not be construed as professional advice, and is not intended to replace official sources. Other resources linked from these pages are maintained by independent providers; therefore, NJM cannot guarantee their accuracy.