Does an LLC Need Insurance? Costs and Coverage 2026

Professional Liability Insurance (Errors and Omissions)

Professional liability insurance covers claims that your LLC delivered faulty advice, made a professional error, or failed to meet a contractual standard of care. This coverage is critical for consultants, marketing agencies, accountants, IT firms, and interior designers. A single client dispute can generate a $50,000+ legal claim even if you ultimately win the case.

Workers’ Compensation Insurance

Workers’ compensation covers medical expenses and lost wages for employees injured on the job. This is legally required in 49 states for any LLC with employees. It also protects the LLC owner from direct lawsuits by injured workers, since accepting workers’ comp typically prevents employees from suing the business personally.

Scroll to Top