General Liability Insurance
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General liability insurance for LLCs

While a limited liability company (LLC) status offers protection from personal liability, your business isn't free from risk. General liability insurance provides coverage for common business risks at LLCs, protects you from financial loss, and helps your business qualify for leases and contracts.

What is general liability insurance?

General liability insurance coverage is a crucial component of risk management for small businesses, especially limited liability companies (LLCs).

It protects LLCs against the most common risks of running a business. This includes covering your legal costs if a customer trips and suffers a bodily injury at your business, or if you accidentally cause damage to a customer's personal property.

Additionally, general liability insurance covers personal injuries and advertising injuries, such as libel and copyright infringement.

Small business owners often need business liability insurance to fulfill requirements for a lease, loan, or contract. For example, a landlord might ask to see a certificate of insurance when you sign a commercial lease.

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Who needs general liability insurance for their LLC?

Most businesses need this insurance, including limited liability companies (LLCs).

This is especially true if you rent or own an office or commercial space, or work directly with clients or customer property. Commercial general liability (CGL) can keep you financially stable if you’re sued by a customer or competitor. That's why most LLCs purchase this policy shortly after opening their business.

While this insurance option isn't typically required by law, different business needs and requirements drive LLC owners to carry this policy, including:

How much is general liability insurance for an LLC?

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Insureon customers pay an average of $42 per month for general liability insurance.

Insurance companies look at a few different factors when calculating your premium, including:

  • Industry and risk factors
  • Where your business operates
  • Policy limits and deductibles
  • Number of employees

Learn how you can get cheap general liability insurance for your LLC.

What other types of business insurance do I need for my LLC ?

General liability coverage safeguards your LLC from many common risks and liability claims, but there are still several areas that need protection.

Depending on your unique business operations, you should consider these additional insurance policies for your LLC to fully protect your business assets:

Workers' compensation insurance is required in most states if your LLC has employees, sometimes including corporate officers and members as well. Workers' comp covers medical expenses for workplace injuries and illnesses, and the lost wages of an injured employee.

Commercial property insurance covers the cost of repairing or replacing your business property if it's lost, stolen, or damaged. This policy can be bundled with general liability in a business owner's policy (BOP), which is typically less expensive than buying these coverages separately.

Commercial auto insurance handles the costs if your LLC's business vehicle is involved in an accident, including medical bills and property damage. Each state has its own requirements for business auto liability insurance.

Professional liability insurance, also known as errors and omissions insurance (E&O) or malpractice insurance, handles the defense costs from client lawsuits over unsatisfactory work, such as missed deadlines, mistakes, and undelivered services.

Cyber insurance, sometimes called cybersecurity insurance, insures against the high costs of data breaches and malicious software attacks. Cyber liability also provides financial coverage for the cost of customer notification, credit monitoring, legal fees, and fines.

Fidelity bonds provide reimbursement to a client if an employee steals from them, including theft by electronic funds transfer. They're sometimes required by client contracts.

As an LLC, your personal assets are protected from business liability. But that doesn't completely safeguard your business from risk - including out of pocket costs from frivolous lawsuits if you aren't properly insured.

How do I get affordable general liability insurance for my LLC?

Complete Insureon’s easy online application today to get insurance quotes from top-rated U.S. insurance carriers. You can also consult with an insurance agent on your business insurance needs, as well as how to get the most affordable coverage.

Once you compare quotes and find the right types of coverage for your small business, you can begin your policy and receive a certificate of insurance in less than 24 hours.

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Updated: January 29, 2024
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