Short Answer: Yes. While not always legally required, business insurance is strongly recommended.
Why It Matters: Forming a business entity helps protect your personal assets from certain business liabilities. Business insurance serves a different purpose—it helps protect the business itself from covered claims, losses, and unexpected events that could otherwise threaten its financial stability. Depending on your business, appropriate coverage may include general liability, professional liability, cyber liability, workers' compensation, commercial property, or other specialized policies.
Common Mistakes: Assuming an LLC eliminates the need for insurance; purchasing inadequate coverage; never reviewing policies as the business grows.
Michelle's Bottom Line: Business entities and business insurance work together. One helps protect you personally, while the other helps protect the business you have worked hard to build.
