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Even as a limited liability company, or LLC, a lawsuit can still put your business at risk. LLC owners should have business insurance to safeguard their assets and comply with contracts and laws.
General liability insurance for LLCs is a must. Depending on what you do and where, professional liability insurance, workers’ comp and other policies may also make sense. Most LLCs can buy coverage online, or you can connect with an insurance agent for personal assistance.
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Best insurance companies for LLCs
Next Insurance
Best for buying LLC insurance online
5.0
NerdWallet ratingIf you give information about your LLC to Next, the company says it can identify the policies you need and provide a quote within minutes. Then, you can complete your purchase online. You can also access your certificate of insurance online and share it as needed. Read NerdWallet’s review of Next small-business insurance.
Chubb
Best business owner's policy for LLCs
5.0
NerdWallet ratingChubb offers a straightforward package of insurance options that is easy for a small-business owner to buy online. Their business owner's policy — which combines general liability insurance with business property and business interruption insurance — also includes extra expense coverage and accounts receivable coverage, which aren’t always part of BOPs. Read NerdWallet’s review of Chubb small-business insurance.
Nationwide
Best for working with a local agent
5.0
NerdWallet ratingNationwide policies are sold by independent insurance agents around the country, so you’ll have hands-on support to find the right coverage for you. Plus, this large, longstanding insurer offers virtually every type of coverage — so your LLC should be able to get all the protection it needs. Read NerdWallet’s review of Nationwide business insurance.
Thimble
Best for LLCs that only need temporary coverage
4.0
NerdWallet ratingIf you need insurance only for a specific event or job — maybe to comply with the requirements of a contract — buying temporary coverage is likely to be your cheapest option. Thimble’s short-term policies can help. Thimble also offers a program called Certificate Manager that you can use to make sure any contractors you hire have the coverage you require. Read NerdWallet’s review of Thimble business insurance.
Hiscox
Best for LLCs with international clients
4.0
NerdWallet ratingHiscox specializes in business insurance, offering a wide variety of coverage options packaged in different ways for businesses in 180 industries. Notably, its professional liability insurance covers work performed anywhere in the world, though claims must be filed in the U.S. or Canada. Read NerdWallet’s review of Hiscox small-business insurance.
What LLC insurance covers
LLC insurance can refer to several different types of coverage. These may be sold separately or bundled together in a package like a business owner’s policy.
Here are the basic types of business insurance your LLC might need:
Insurance policy | What it covers | Who needs it |
|---|---|---|
Protects your business against bodily injury and property damage claims filed by customers and other third parties. | All businesses should have general liability insurance. | |
BOPs normally include general liability insurance, business property insurance and business interruption insurance, which makes up for lost income if your business has to pause operations because of a covered loss. | LLCs that have property to protect, like those that rent space or sell physical inventory. | |
Protects your business against claims that you made a mistake that resulted in a loss to your customer. In many industries, it’s called errors and omissions insurance (E&O). | LLCs that provide services to customers for a fee. | |
Provides coverage if you or your staffers use a vehicle in the course of doing business. | LLCs that have a business vehicle, frequently drive for work or have employees drive as part of their work. | |
May be legally required if you have employees (regulations vary by state). It will help cover your staff's medical bills and lost wages if anyone is injured on their job. | LLCs that are required by state law to have workers' comp. Learn more about your state's regulations here. |
Other LLC insurance coverage
There are lots of other types of business insurance that protect against specific risks. If your business manufactures or sells products, handles sensitive data or sells alcohol, for instance, you may need more specialized protections.
Why do LLCs need business insurance?
An LLC, or limited liability company, is so named because it limits the impact of claims on owners' personal finances. If the business is sued and found liable or faces bankruptcy, an LLC should protect your personal assets — as long as you haven’t been mixing personal and business finances or breaking the law.
But that protection doesn’t extend to your business finances.
If your LLC is held responsible for damaging someone’s property, injuring someone or making a mistake that resulted in a financial loss, for instance, it might have to pay medical bills, settlement costs and more. LLC insurance can help protect your business finances in cases like those.
How to get LLC business insurance
Getting business insurance quotes from several insurance providers is the best way to find the right coverage for your LLC at the right price. You can use an online brokerage like Coverdash to generate multiple quotes at the same time.
Many LLCs can buy all the insurance they need online through providers like Next, Chubb and Thimble. But if your business faces specialized risks — or you just want professional support — call a business insurance agent for help.
How much does LLC business insurance cost?
The cost of business insurance for your LLC will depend on many factors, including your company’s industry, location and size. Getting quotes from insurers is the best way to estimate how much you’ll pay.
All LLCs should carry general liability insurance. Premiums for those policies range from $700 to $3,000 per year (roughly $58 to $250 per month) for businesses with $1 million or less in annual revenue, according to Coverdash. For professional liability insurance, that range is $1,200 to $2,200 per year ($100 to $183 per month).
Many insurance companies offer discounts if you bundle several policies or pay your premium annually instead of monthly.
Methodology
Business insurance ratings methodology
NerdWallet’s business insurance ratings reward companies that offer small-business owners reliability and ease of use. Ratings are based on weighted averages of scores in several categories, including financial strength, customer complaint data, shopping experience and customer service. Learn more about how we rate small-business insurance companies.
These ratings are a guide, but insurance policy details and prices can vary widely from business to business and provider to provider. We encourage you to shop around and compare several insurance quotes.
NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
Insurer complaints methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2018-2021.
To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period.
Our star ratings consider ratios for both general liability insurance and commercial property insurance. When an insurer sells policies that are underwritten by several different insurance companies, we consider the NAIC complaint ratios of all the underwriters.
