Do You Need Insurance If You Have an LLC?
An LLC is a legal liability that protects your personal assets in case of a lawsuit against business assets. It can help you to run your business, but that does not make your business untouchable. LLCs get a fair amount of insurance coverage that protects the company from significant losses. So, here we will be discussing some reasons why an LLC still needs insurance.
Reasons Why You Need Insurance
Protection from Lawsuits
One of the major concerns for business owners having an LLC is a lawsuit. LLC does not cover businesses from the case; that is why you need to have general liability insurance to cover the company.
Required by the State
Most states require general liability insurance in addition to the LLC., and it is a necessity for the business to be protected. The insurance helps you run your business smoothly without focusing on possible consequences in the future.
Protect Your Resources
Your LLC should have insurance policies alongside those required by the state to run your business smoothly. Having the right choice of insurance is vital, as it is unwise to spend all of your business revenue on the insurance that will not be useful.
Which Insurance Must Have Along With LLC?
In most of the states, LLC must have the following insurance:
- Workers Compensation Insurance
- Unemployment Insurance Tax
- Disability Insurance
Additional Insurances an LLC Should Have
Besides required insurance, LLCs should have the following coverage as well:
- Professional Liability Insurance
- General Liability Insurance
- Commercial Property Insurance
- Business Interruption Insurance
- Commercial Vehicle Insurance
- Business Owner Policy
These are some of the insurance policies that will help you protect your LLC. Besides the mentioned insurance policies, there are some policies you may add after a discussion with your legal advisor. They include:
- Product Liability Insurance
- Directors and Officers Liability
- Life Insurance for Directors and Officers
Even if you have an LLC, you still need to review additional insurance options. PNC Texas offers its insurance services for all cities in Texas. PNC Texas deals with all types of insurance. You can get your insurance questions answered by our highly skilled and qualified legal professionals.