Does A LLC Have To Carry Insurance?

Is a LLC required to carry liability insurance?

Answer

Usually not, though it’s a good idea to carry liability insurance to protect your business assets and to have the insurance company pay for your legal defense.

In some states, if you are a professional LLC, such as a law firm or doctor’s office, your licensing board might require insurance.

If the LLC has enough employees to fall under the state’s Workers Compensation law, then it might have to purchase that type of insurance.

If the LLC owns a business vehicle, then state law regarding minimum auto liability insurance is, of course, necessary.

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