Does an LLC Need Business Insurance?

| April 4, 2019

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Owning a business has perks, but there’s definitely a certain level of liability that comes with being your own boss. That’s why many entrepreneurs opt for an LLC structure instead of a sole proprietorship. Under LLCs, your personal assets are virtually untouchable. So, in the event of a liability lawsuit, you are only held accountable for the actions of the company itself. While LLCs aren’t obligated to buy policies in many cases, having a fair amount of insurance coverage is still a wise way to protect the company. Here are a few reasons why an LLC needs business insurance coverage. Reason #1: You Need Protection Against a Lawsuit. One key area why an LLC might need business insurance is for protection against lawsuits. Many LLCs form to help protect the owners of the company. However, litigation against individual members due to actions of the business is still a possibility. This is where having general liability insurance becomes incredibly important. In some cases, coverage extends to both the LLC and the owners. It can protect both the business and owner assets.

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Swiss Re

The Swiss Re Group is a leading wholesale provider of reinsurance, insurance and other insurance-based forms of risk transfer. Dealing direct and working through brokers, its global client base consists of insurance companies, mid-to-large-sized corporations and public sector clients. From standard products to tailor-made coverage across all lines of business, Swiss Re deploys its capital strength, expertise and innovation power to enable the risk taking upon which enterprise and progress in society depend.

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