How do you get insurance for your LLC?

Where is the best & most efficient insurance company to protect your LLC from lawsuits? Or is that necessary if you just recently formed the LLC?

to my knowledge you do not go out and buy ins for your LLC… you buy insurance policies for the properties your LLC will hold…Depending on your state, your LLC will have certain levels of legal responsiblilties as will you.

keep in mind, your LLC may neve have any credit and all your loans will most likely be done in your name and then you will QC the properties to your LLC…occassionally you will find a lender that will loan in your name but allow the close in the LLC, but its rare…

What state do you live in and what state is your LLC set up in?

I live in Atlanta, GA & my LLC is set up in Georgia as well. However, I buy properties on the East Coast. Good to know – I wasn’t sure if the actual entity needed coverage above and beyond the insurance held for each property.


from my experience a LLC in NV provides the best coverages and tax benifits but i live in Fl and am not required to file any additional papers with the state even though i buy and sell in Fl…

yrush, with all due respect, what exactly IS your experience with LLC’s and insurance?


As always you can do whatever you want, or don’t want, to do in life. Personally, I’d never go around town without general liability insurance, both for you and your LLC.

Insurance for your properties covers you for problems and legal matters from that particular property only and is usually $300K or less. It will not cover you for a general type lawsuit even if it’s from the tenant in that particular property.


I am not an insurance agent if your asking or CPA… So I can not say I have tons of experience. But i have never heard of insurance for an LLC before since in this case his LLC is established to hold real estate properties, all the properties in it will have an insurance policy.

Now was for my LLC’s, they are established in NV, which gives me ZERO risk to my personal assets and income as well as a better tax advantage since I live in FL since my LLC’s are taxed as a C Corp and I am able to pass the income over to myself on a W2 if I want. I have a CPA who is a certified tax expert handling my LLC’s.

I been doing it for over 3yrs this way and never a problem, nor have I ever paid more than 7.5% income taxes on the sales of any of my homes I made during the tax yr, regardless if I owned the home for 1 day or 2yrs…
Each state regulates its LLC and out of state corportations differently. Fl has no state tax just like NV so therefore I am allowed to have my business in NV but make my purchases in FL and conduct business in Fl as well… I just ultilize 2 seperate LLCs for this. A holding co and a property mgmt co…

An LLC is nothing more than an entity doing some sort of business. Any business should be able to purchase liability insurance from almost any reputable agent/broker.

And with all due respect yrush, while your personal assets may be protected, general property insurance for properties within a LLC may be insufficient to properly insure the LLC itself from perils such as fraud, negligence, discrimination, malpractice, etc. These types of contingencies are usually covered under a general liability policy that is not typically part of a property “fire and wind” policy. I would also strongly consider a management errors and omissions type policy to cover the management of the company from poor business decisions. You, as an employee, could be held personally liable for certain actions taken as an employee or manager of your corporation.

Mark Wagner, CPA

While I certainly agree that you can get general liability insurance for your LLC, the question is how much can you afford to spend on insurance. It is easy to blow all the profit on insurance. Personally, I have $500K on the properties which includes landlord liability and don’t carry additional liability for each LLC.

That’s just another expense that the gurus never mention and that they fail to include in their cash flow analysis!!!


I would like to know how many investor have personal insurance for there LLC’s…come on guys…share your thoughts on this subject…It can be interesting and a big learning experience for everyone…


here’s one.

Mark Wagner, CPA

And another!


what is the cost for the ins on the LLC and typical limits??Who sells the policies???

Ask whoever does your homeowners. They’ll usually do liability and/or builders risk if you’re already a customer. Mine’s about $900 a year.