As a business owner, it's important to make sure you have the right insurance coverage in place to protect your company and your assets. But what if you're operating as an LLC? Do all the same business insurance rules apply?

In this guide, we'll cover everything you need to know about small business insurance, including what types of coverage you might need, how to get it, and what you can expect to pay for true peace of mind.

IS AN LLC THE SAME AS HAVING INSURANCE?

Business insurance is a complicated subject, which is why at Christensen Group, we believe there is no such thing as a stupid question. No, an LLC is not the same as having insurance. If you’re unfamiliar, an LLC (limited liability company) is a business structure that can offer its owners some protection from personal liability for business debts and obligations.

However, this protection is not automatic or absolute. To enjoy the full protection of an LLC, you must follow certain rules and regulations, including maintaining your LLC status and keeping your personal and business finances separate.

Additionally, an LLC will not protect you from liabilities that arise from your own negligent or illegal actions. For example, if you cause a car accident while driving on behalf of your LLC, your personal auto insurance policy will be the primary coverage source to pay for damages.

DO I NEED BUSINESS INSURANCE IF I HAVE AN LLC?

The answer is yes! Even if you have an LLC, you'll still need to carry business insurance to protect your company from potential risks. This is because an LLC offers limited liability protection, which means that your personal assets are protected in the event that your company is sued. However, your business assets are still at risk, which is why you'll need to have business insurance in place.

WHAT TYPES OF COVERAGE DO I NEED FOR MY LLC?

There are many different types of business insurance that you should consider carrying as an LLC, including:

• General Liability Insurance: This type of insurance will protect your company from claims arising from injuries or property damage that occur on company premises or as a result of your company's operations.
• Product Liability Insurance: If your company sells physical products of any kind, this type of insurance will protect you from claims arising from injuries or property damage caused by your products.
• Errors and Omissions Insurance: This type of coverage will protect your company from claims arising from professional negligence, such as making a mistake in your work or giving bad advice.
• Property Insurance: If you’ve entered into a lease agreement, you’ll need to procure liability & property coverage. If you own any business property, such as office space or equipment, this type of insurance will protect that property from damage or theft.
• Worker's Compensation Insurance: If you have employees, you'll need to have worker’s compensation coverage. This type of insurance will provide benefits to employees who are injured or become ill as a result of their job.
• Business Interruption Insurance: This type of insurance will help to cover your expenses if your business is forced to close due to a covered event, such as a fire or flood.
• Cyber Insurance: With more and more businesses going online, this type of insurance is becoming increasingly important. It will protect your company from claims arising from data breaches, cybercrime, and other online risks.

These are just a few of the most common types of insurance that LLCs should consider carrying. There are many other coverages that could be recommended for your business, but of course, your specific needs will depend on the nature of your business and the products or services you offer. To find out what's right for you, contact a business insurance professional at Christensen Group today.

HOW DO I GET SMALL BUSINESS INSURANCE?

The best way to get insurance for your business is to work with an experienced insurance broker who can help you assess your risks and find the right coverage for your company. A broker can also help you compare rates from different insurance providers to ensure you're getting the best possible price on your coverage.

HOW MUCH DOES COVERAGE COST?

The cost of insurance will vary depending on a number of factors, including the types and amount of coverage you purchase, the location and size of your company, and the industry you're in. However, you can expect to pay anywhere from a few hundred to several thousand dollars per year for insurance coverage.

HOW ARE MY PREMIUMS DETERMINED?

Your policy premiums are dependent on three primary variables: insurance carrier capacity, your exposures, and your loss experience. If there’s a shortfall of capital in the insurance marketplace, the cost of all insurance will be high. The more property you have to insure or the more exposures to loss you have, the higher your premiums. The higher your historic losses, the less likely insurers will want to take on your risk, thereby increasing your premiums.

CONTACT CHRISTENSEN GROUP TODAY TO DISCUSS YOUR SMALL BUSINESS INSURANCE NEEDS

At Christensen Group, our team is comprised of specialized business insurance experts who are invested in weaving together solutions that are right for your risks. No matter where you are in your business, we deliver a high-touch experience through dedicated consultants who are here to bring clarity as they find creative ways to address your most pressing challenges. Speak with one of our business insurance professionals today to get started.