Insurance

by Eddie
(NJ)

Do you have to carry special insurance when you are a LLC?

Answer

There is no special business insurance for LLCs that differs from partnerships or corporations.

You should buy the types of insurance that are most suitable for the type of business you operate.

A good insurance agent can be invaluable.

The main concept with insurance is to insure against large liabilities that you cannot control and cannot pay if they occurred.

A good analogy is automobile insurance. You insure against a total wreck of your car, because that is something you can't control (even a safe driver can be hit by an idiot or drunk), and is a huge loss if it occurs.