Real Case Study: Single Member Cleaning LLC, Texas
Business: Sarah’s Pristine Cleaning LLC, Austin, Texas. Single member, no employees, annual revenue $68,000. Sarah cleans residential and light commercial properties using subcontractors.
The problem: Sarah assumed her LLC registration protected her from personal liability. A client filed a claim after one of Sarah’s subcontractors allegedly broke an antique mirror valued at $3,200 during a cleaning job.
Without LLC insurance: Sarah would be personally responsible for the property damage claim plus any legal fees incurred to dispute it. Subcontractor clauses in the LLC operating agreement would not shield her from the client’s direct claim against the business.