Does an LLC Need Insurance? Costs and Coverage 2026

Business Owner’s Policy (BOP)

A BOP bundles general liability insurance and commercial property insurance into one package, typically at a lower combined rate than buying both separately. For LLCs with physical locations, equipment, or inventory, the BOP is usually more cost-efficient than standalone general liability. A BOP also includes business income insurance, which replaces lost revenue if a covered event such as a fire or theft forces your LLC to suspend operations. For LLCs operating retail or commercial locations, see our breakdown of insurance for retail and commercial LLC businesses.

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