Industry-Specific Requirements: Contractors in most states must carry a minimum level of general liability insurance to obtain a business license. Regulated professions require professional liability coverage. Commercial leases commonly require $1M–$2M in general liability as a condition of occupancy.
Contract and Lender Requirements
Beyond state law, LLC insurance is frequently required by B2B clients before a project can begin, by banks and lenders approving business financing, and by commercial landlords as a lease condition. Approximately 43% of small business owners report being threatened with a lawsuit, and counterparties protect themselves by requiring proof of coverage before engaging.