Business
LLC Insurance: What Your LLC Actually Needs
Published September 24, 2026 · Last updated October 1, 2026
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The short answer
An LLC keeps your personal savings and your house separate from most business debts. It doesn't pay for a customer who slips in your shop, a fire in your storage unit, or a client who says your work cost them money.
Insurance pays those bills. The LLC decides whose money is on the line. You need both. Most single-owner LLCs start with general liability, about $45 a month on average, or a bundled business owner's policy, about $83 a month.
Not a quote or an offer. Your price comes from the insurance company. Source: Insureon, 2026 (based on its small business customers).
Thimble is a participating provider that offers small business coverageSponsored online.
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Does an LLC need insurance?
Usually, yes. There's no single "LLC insurance" policy. It means the business policies your LLC needs. The LLC itself doesn't pay claims. It only helps keep business debts separate from your personal ones.
The myth to clear up first
A lot of new owners are told the LLC "protects them," so they skip insurance. Here's where that breaks down:
- The LLC can still be sued, and its money can still be taken. Your business bank account, tools, trucks, and unpaid invoices all belong to the LLC.
- You can be sued personally for your own work. If you did the job, courts often let the claim follow you, not just the company.
- A single-owner LLC with no records is easier to challenge. Mixing personal and business money is one of the ways owners lose that separation.
- Contracts don't care. Landlords, clients, and general contractors ask for a certificate of insurance, not your formation papers.
What most LLCs start with
General liability
Covers someone else getting hurt or their property being damaged because of your business. This is the policy most clients and landlords ask for, usually at a $1 million limit. See general liability insurance.
Commercial property, or a business owner's policy
Covers your gear, inventory, and furniture, and your building if you own it. A business owner's policy bundles this with general liability and usually costs less than buying both apart.
Professional liability or E&O
Covers claims that your advice or your work cost a client money. If you consult, design, advise, or handle other people's records, this is the one general liability skips. See professional liability.
When you need to add more
- You hire anyone. Workers' comp is required in most states once you have employees. Rules are set state by state, so check yours.
- You drive for work. A personal auto policy can deny a claim on a work trip. That's what commercial auto is for.
- You keep customer data or take cards. Cyber insurance handles stolen data. Most basic business policies don't.
- You carry tools or equipment to job sites. Inland marine covers gear away from your shop.
- Your state or city licenses your trade. That often means a surety bond, which isn't insurance and works differently.
What to ask before you buy
- "Whose name is on the policy?" It should be your exact LLC name, matching your formation paperwork.
- "Am I covered personally too?" Ask how the policy handles claims naming you and the LLC.
- "Does this meet my contract?" Match the limits in your lease or client contract word for word.
- "Can I add an additional insured?" Ask if there's a fee.
- "What's excluded for my trade?" Heights, excavation, alcohol, and pollution are common carve-outs.
The catch: new owners often buy the lowest limit available, then find out their biggest client requires double. Check your contracts before you pick a limit.
Keep reading
Still setting up? Read how to start an LLC and compare business formation services. See every coverage in small business insurance cost.
Core business insurance: Small business insurance cost · General liability · Workers' comp · Business owner's policy · Professional liability · Commercial auto · Commercial property · Cyber insurance · General liability vs. a BOP · Home-based business insurance · All business services
Insurance by trade: Contractor insurance · Builder's risk · Lawn care and landscaping · Cleaning business insurance · Handyman insurance · Food truck insurance · All business services
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