Does an LLC Need Insurance? Costs and Coverage 2026

Do I need business insurance for a sole proprietorship? Yes, and arguably more urgently than for an LLC. As a sole proprietor, there is zero legal separation between your personal assets and business liabilities. See our full sole proprietor insurance guide for a detailed cost comparison.

What is the best insurance for an LLC? For fast affordable online coverage: Next Insurance ($11+/month). For comprehensive coverage: The Hartford. For solo professional LLCs: Hiscox. For commercial auto-heavy LLCs: Progressive. For premium BOP coverage: Chubb.

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