General liability insurance for LLCs

General liability insurance 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 defense 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.

General liability insurance also covers claims related to personal and advertising injury, 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.

General liability safeguards your LLC from many common third-party risks and liability claims, but it doesn't cover everything. You'll need separate policies for critical areas like employee injuries, business property damage, auto accidents, professional mistakes, and cyber risk.

Depending on your business needs and state requirements, you should consider these additional policies for more comprehensive protection:

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. You can bundle it with general liability in a business owner's policy (BOP), which typically costs less 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, also called cybersecurity insurance, protects against the high costs of data breaches and malicious software attacks. Cyber liability insurance 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 the high cost of legal defense, even for frivolous lawsuits, if you aren't properly insured.

Complete Insureon’s easy online application today to get insurance quotes from the best general liability insurance companies in the U.S.

When comparing quotes, you can consult with an agent on your business insurance needs. Once you find the right coverage for your LLC, you can start your policy and receive a certificate of insurance (COI) in less than 24 hours.