If you’ve formed a Limited Liability Company (LLC), congratulations—you’ve already taken a big step in protecting yourself legally. But here’s something many new business owners don’t realize: forming an LLC doesn’t protect you from everything. That’s where insurance comes in.
At Eugene C. Yates Insurance Agency, we’ve been helping Sacramento business owners safeguard their companies for over 75 years. Here’s what you need to know about how insurance works with an LLC—and why it’s essential.
✅ What Does an LLC Actually Protect?
An LLC (Limited Liability Company) is a legal structure that separates your personal assets from your business liabilities. That means if your company gets sued or goes into debt, your personal savings, home, or car are generally protected.
But the LLC structure does not protect your business itself from:
- Lawsuits
- Property damage
- Workplace injuries
- Data breaches
- Professional mistakes
- Natural disasters
That’s where the right business insurance policy steps in—to cover the gaps and protect what you’ve built.
🛡️ The Insurance Policies Every LLC Should Consider
Depending on your industry, size, and operations, your LLC might need one or more of the following insurance policies:
1. General Liability Insurance
Every LLC—no matter how small—should have this. It protects your business from third-party claims of:
- Bodily injury
- Property damage
- Personal injury (like slander or libel)
Example: A client slips and falls at your office. Your general liability insurance can cover medical expenses and legal costs.
2. Professional Liability Insurance (Errors & Omissions)
If your LLC offers advice or professional services (consulting, real estate, marketing, etc.), this policy protects you from claims of negligence or service failure.
Example: A client claims your consulting advice cost them thousands in lost revenue. Professional liability insurance can help cover your legal fees.
3. Commercial Property Insurance
This covers your business’s physical assets—like equipment, furniture, and inventory—from theft, fire, or vandalism.
Note: You don’t need to own a building to need this—if you lease a space or work from home with business equipment, you should still be protected.
4. Business Owner’s Policy (BOP)
A great option for small to mid-size businesses, a BOP bundles general liability and property insurance into one affordable package.
5. Workers’ Compensation Insurance
In California, this is legally required if your LLC has even one employee. It covers work-related injuries, lost wages, and medical treatment.
6. Cyber Liability Insurance
Any LLC that handles customer data, processes payments online, or relies on technology should consider this. It helps cover the cost of a data breach or cyberattack.
7. Commercial Auto Insurance
If your LLC owns a vehicle or you use your personal car for business, a commercial auto policy protects you in case of accidents.
📝 How to Get the Right Insurance for Your LLC
Here’s a simple process to protect your business:
- Assess your risk – Consider your industry, number of employees, and exposure.
- Work with an independent agent – At Eugene C. Yates Insurance Agency, we shop the top carriers for the best rates and coverage.
- Bundle where possible – Policies like BOPs offer savings and simplicity.
- Review annually – As your business grows or changes, so should your coverage.
📍 Local Expertise for Sacramento LLCs
Whether you’re a contractor in Roseville, a boutique owner in Midtown, or a tech startup in Elk Grove, your insurance needs are unique. That’s why we customize every quote to fit your LLC’s size, scope, and budget.
Final Thoughts
LLC status gives you legal protection. Insurance gives you financial protection.
Running a business without the right insurance is like driving without a seatbelt. One wrong turn—and everything you’ve worked for could be at risk.
Ready to protect your LLC the smart way?
Call Eugene C. Yates Insurance Agency today or request a free, no-obligation quote online. Let’s build a policy that grows with your business.