What kind of liability coverages exist for an LLC?
There are many types of liability insurance for LLC. Depending on your company needs, risk level, and tolerance, sure there’s a right program specifically tailored for your business.
Provides broad coverage of protecting your business from various liabilities such as injury or accident claims, property damage and false or misleading advertisements. It helps pay for medical expenses, legal costs and court settlements with regards to the incident.
If your business deals with manufacturing or selling products, this insurance covers you from product claims resulting in injury or property damage. If someone files legal charges against you due to a faulty product, the insurance company takes care of it, so you don’t have to worry.
For those dealing with professional services or giving professional advice, this policy will help protect you against liabilities associated with malpractice, errors, negligence, and omissions. Medical practitioners, financial firms, and law offices are highly advised to obtain this insurance.
Also known as “D & O,” this policy offers protection to company directors and officers in case of wrongdoings or accusations. If a lawsuit is filed against one of your directors or officers, it helps pay for legal costs and specific damages depending on the liability coverage.
Another liability insurance for LLCs is Property Damage. This policy protects your business property against damages or loss resulting from natural calamities or human-made disasters. Subject to the extent of coverage, it may include theft, vandalism, flood and other uncontrollable events.
A state-mandated program, workers compensation is required for all types of businesses regardless of classification. It helps protect your business from medical expenses, rehabilitation costs and lost wages if an employee becomes sick or injured while doing his job.
Depending on the area your business operates, not all states require LLC companies to carry a specific Business Liability Insurance. Take Workers’ Compensation as an example where certain states require it for those with more than three employees while some areas are stricter that it applies to all, regardless of the number of workers. Other liability insurance for LLCs where you need to check your local government regulations are Disability Insurance and Unemployment Tax Insurance.