Do you know what happens if your business doesn't have insurance? While paying for insurance you don't end up using is never fun, it's something you don't want to be without if an unfortunate situation arises.
Setting up a new business requires you to be diligent about specific things like filing the right paperwork with the right people and perhaps obtaining permits or licenses. And obtaining insurance for LLC operations is right up there on the list.
Business insurance for an LLC provides protection from liability claims such as property damage or bodily injury that are caused by your business, your employees, or even the products you sell (if you sell products).
If you have employees, most states require that you pay into workers' compensation insurance, which is a form of business insurance that protects your company from being financially liable for accidents your employees may have while on the job.
If you've ever claimed "workers' comp," then you may be familiar with this insurance and how it works. LLCs pay premiums for their employees to maintain coverage in the event that an incident occurs, but this isn't automatic when you form an LLC. It's also not the only type of business insurance you may need.
Most companies that provide insurance for LLCs don't list prices publicly and instead require you to submit your information to receive a detailed price quote. Naturally, this can make it difficult to get an idea of what your premiums might look like for the various insurance options, so we've made it easy.
According to The Hartford, here are the average costs of small business insurance that most business owners paid for different types of coverage: