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:
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 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.
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.
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.