Personal Finance

Best Business Insurance Options for LLCs

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Structuring your business as an LLC might protect your personal finances in case of a lawsuit, but you’ll still need general liability insurance and other commercial policies to protect your business assets.

The best business insurance providers for LLCs offer convenient packages and great customer service, whether you prefer an online or face-to-face experience.

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 their business is found liable. If the business is sued or faces bankruptcy, your personal assets should be protected — as long as you haven’t been mixing personal and business finances or breaking the law.

But that doesn’t mean the business’s assets are protected. 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.

In such instances, business insurance for your LLC is beneficial.

What is LLC business insurance?

LLC business insurance can refer to several individual types of coverage, potentially bundled together. Most businesses, including LLCs, should have some or all of the following:

A business owner’s policy is often a good place to start. These packages normally offer general liability and business property insurance. Many also include business interruption insurance, which makes up for lost income if your business has to pause operations because of a covered loss.

There are lots of other types of business insurance that protect against more specific types of risk. If your business manufactures or sells products, handles sensitive data or sells alcohol, for instance, you may need more specialized protections.

What are the best insurance options for LLCs?

Purchasing several insurance policies from the same provider can make the shopping experience easier for a busy business owner. Many insurers offer industry-specific packages that come with discounts. And if you have to file claims, you’ll work with a similar system each time.

Here are our picks for the business insurance providers that may meet an LLC’s needs.

Chubb: Best overall commercial insurance provider

  • Above-average score for customer satisfaction in J.D. Power’s 2021 small commercial insurance study.

  • Some insurance products are available for riskier, newer or hard-to-place industries that may not get coverage elsewhere.

  • You can only purchase basic policies online, including general liability, professional liability and a business owner’s policy.

Why we like it: Chubb is the largest commercial insurer in the U.S., according to the National Association of Insurance Commissioners. The company offers a straightforward package of insurance options that are easy for a small-business owner to navigate and customize, plus many more sophisticated options to support an LLC as it grows. In addition, its above-average customer satisfaction rating makes it worth looking at.

State Farm: Best hands-off shopping experience

  • Professional liability insurance is available as part of a BOP.

  • Industry-specific packages make it easy for business owners to identify coverage they might need.

  • Above-average score for customer satisfaction in J.D. Power’s 2021 small commercial insurance study.

  • No online access for business insurance customers.

Why we like it: State Farm policies are sold by a nationwide network of State Farm insurance agents. Because business insurance customers can’t currently make online accounts, you’ll probably work with your insurance agent not just to get a quote, but also to file and track claims and purchase additional coverage. For that reason, it’s important to find a State Farm agent you like and trust.

Next: Best digital-first experience

  • Get a quote and buy a policy online in a matter of minutes.

  • Claims can be filed online and resolved within days.

  • Next offers some pricing information online, so you can get ballpark figures before you get a quote.

  • Founded in 2016, Next doesn’t have the long tenure that many of its competitors do.

Why we like it: In general, it’s still difficult to address your business insurance needs online — some insurers don’t even offer online quotes. But 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 and call for help if you need it.

Hiscox: Best for LLCs with international clients

  • 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.

  • 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.

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 regularly get a business insurance quote online, you’ll need to work with an insurance broker or agent to buy a policy in many cases. Working with an agent introduces an additional cost — most brokers and agents are paid on commission, and brokers may collect fees — but working with one can help you understand the coverage you need.

In general, NerdWallet recommends getting quotes from several providers before purchasing a policy.

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