⏰ Estimated read time: 8 minutes
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.
You may want multiple types of coverage, but general liability insurance for LLCs will be a must for most businesses. Depending on what you do and where, professional liability insurance, workers’ comp and other policies may also make sense.
The good news is that you can often buy the LLC insurance you need online in a matter of minutes. Most of our picks for the best business insurance for LLCs provide that option — in addition to offering convenient packages and good customer service.
What are the best insurance options for LLCs?
Next: Best overall LLC business insurance
5.0
NerdWallet rating
Pros:
Get a quote and buy a policy online in a matter of minutes.
Access and share your certificate of insurance online.
Next offers some pricing information online, so you can get ballpark figures before you get a quote.
Cons:
Doesn’t sell some specialized coverage types, like key person insurance or directors and officers insurance.
Why we like it: If you share information about your LLC with Next, the company says it can identify the policies you need and give you a quote within minutes. What’s more, you can complete the purchase online —but still call an insurance agent for help if you need it. 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 rating
Pros:
You can buy a business owner’s policy, general liability insurance, professional liability insurance and other common types of coverage online.
BOPs include extra expense coverage, which doesn’t always come standard.
Cons:
You’ll have to request a copy of your certificate of insurance through an online portal.
Why we like it: Chubb offers a straightforward package of insurance options that are 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.
Thimble: Best for LLCs that only need temporary coverage
4.0
NerdWallet rating
Pros:
Policies are available by the job, week or month to cover you for specific events.
Thimble’s “certificate manager” allows your contractors or subcontractors to buy insurance policies that comply with your requirements.
Cons:
Customer service is only available via live chat and email, not phone.
Why we like it: If 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.
Nationwide: Best for working with a local agent
5.0
NerdWallet rating
Pros:
Top score for customer satisfaction in J.D. Power’s 2023 small commercial insurance study.
Offers highly specialized types of coverage, like surety bonds and builder's risk insurance.
Cons:
Can start a quote online, but need to connect with an independent agent to purchase coverage.
Why we like it: Nationwide policies are sold by independent insurance agents around the country, so you’ll have hands-on support to find the right coverage for you. Nationwide received top customer satisfaction marks from business owners in J.D. Power’s annual survey. 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.
Hiscox: Best for LLCs with international clients
Pros:
Professional liability policies cover work done all over the world.
Industry-specific packages make it easy for business owners to identify the coverage they need.
Can get a quote and purchase a general liability policy online.
Cons:
Hiscox business owner's policies aren't available in all states.
Why we like it: Hiscox 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.
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What is LLC insurance, and what does it cover?
LLC insurance protects your business finances in case of lawsuits, property damage, employee injury and other risks. It 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:
General liability insurance
General liability insurance protects your business against bodily injury and property damage claims filed by customers and other third parties.
Who needs it: All businesses should have general liability insurance.
Business owner’s policy
General liability insurance is a key part of a business owner's policy. These packages normally come with 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.
Who needs it: LLCs that have property to protect, like those that rent space or sell physical inventory.
Professional liability insurance
Professional liability insurance 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 or .
Who needs it: LLCs that provide services to customers for a fee.
Commercial auto insurance
Commercial auto insurance provides coverage if you or your staffers use a vehicle in the course of doing business.
Who needs it: LLCs that have a business vehicle, frequently drive for work or have employees drive as part of their work.
Workers' compensation insurance
Workers’ compensation insurance 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.
Who needs it: 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.
» MORE: Does your business need insurance?
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 do you get LLC business insurance?
NerdWallet recommends getting business insurance quotes from several insurance providers to find the best coverage for your LLC at the best price.
Purchasing several insurance policies from the same provider — either as a BOP or a custom bundle — can make the shopping experience easier for a busy business owner. Many insurers offer discounts if you buy multiple policies from them. And if you have to file claims, you’ll work with a similar system each 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.
» MORE: Best places to buy business insurance online
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.
Though you can often get a business insurance quote online, you may need to work with an insurance broker or agent to buy a policy. Working with an agent introduces an additional cost — most brokers and agents are paid on commission, and brokers may collect fees — but they can help you understand the coverage you need.
