Yes. An LLC limits owners’ personal liability for business debts, but it does not pay for losses or lawsuits. Insurance protects the company (and, in some cases, you) from the cost of claims and interruptions. Key points:

• Liability still exists: Third parties can sue the business for injury, property damage, or errors. Without insurance, the company funds defense and judgments.

• Contracts require it: Landlords, clients, and lenders often mandate specific coverages and limits regardless of entity type.

• Personal exposure can persist: Owners may be liable for personal negligence, signed guarantees, or if corporate formalities are not followed.

• Common policies: General liability, professional liability, property and business income, workers’ compensation (if you have employees), commercial auto, cyber, and umbrella.

• Bundled option: Many small LLCs qualify for a Business Owner’s Policy (BOP) that combines property and liability at a competitive cost.

The LLC is a legal structure; insurance is the financial backstop. Most LLCs still need coverage tailored to their operations, assets, employees, and contracts.

Working with a commercial insurance broker provides:

Yes, certain types of business insurance cover legal defense costs and settlements related to covered claims.

Professional liability insurance, also known as errors and omissions (E&O), protects businesses from claims related to:

• Professional mistakes
• Negligence
• Failure to deliver services as promised

This is a high-search topic for consultants, technology firms, healthcare providers, and financial professionals.

Learn more about professional liability insurance

Inland marine insurance is commercial coverage for movable property, equipment, and goods when they are in transit, on job sites, or away from your main location. It fills gaps that standard property policies (which focus on a fixed address) may not cover.

Common examples:

• Contractors’ equipment and tools: on trucks or job sites

• Installation floaters: materials from purchase through installation

• Builder’s risk: structures under construction

• Bailee’s coverage: customers’ property in your care: e.g., repair shops, cleaners

• Motor truck cargo: freight you haul

• Fine art/exhibitions, accounts receivable, signs, and EDP/tech equipment

How it typically works:

• Often written on an “all-risk” (open-perils) basis, subject to exclusions

• Can be scheduled (itemized) or blanket (a pool of similar items)

• Limits should reflect replacement cost and peak values while on the move

Note: Wear and tear, mechanical breakdown, and faulty workmanship are usually excluded unless specifically endorsed. Review your policy forms to confirm what is, and is not, covered.

Learn more about inland marine insurance

A Certificate of Insurance (COI) is a standardized document that summarizes an insured’s active policies for a specific moment in time. It serves as proof of insurance to third parties (e.g., clients, landlords, general contractors, vendors).

What a COI shows:

• Named insured and insurer(s)

• Policy types (e.g., general liability, auto, workers’ compensation, umbrella)

• Limits of liability and effective/expiration dates

• Certificate holder and any requested notations

Important limitations:

• A COI is for information only; it is not an insurance policy.

• It does not add or change coverage, grant additional insured status, or waive subrogation by itself. Those rights exist only if the policy includes the proper endorsements.

• Actual coverage is governed by the policy and its endorsements, not by wording in the COI’s description box.

Best practice:

When contracts require specific terms (e.g., additional insured or waiver of subrogation), request copies of the endorsements or the Schedule of Forms and Endorsements to verify compliance.

Yes. Chubb is one of Tower Street Insurance’s most trusted and valued carrier partners, particularly for middle-market, high-net-worth, and complex commercial risks.

Yes. Tower Street has access to specialty and excess & surplus carriers for risks that are difficult to place in standard markets. This is especially valuable for industries facing higher loss frequency, regulatory complexity, or rapid growth.

No. Insurance carriers vary significantly in:

A surety bond is a three-party agreement that guarantees a company or individual will meet their obligations. The three parties include:

Surety bond costs vary depending on several factors, including:

Surety bonds are not the same as insurance. Insurance transfers risk, whereas a surety bond is a financial guarantee.

Yes. High-net-worth programs include property coverage for high-value homes and belongings, often with broader terms than standard policies. Typical components are:

• Homes and other structures: Primary and secondary residences, guesthouses, pools, and gates (often with extended or guaranteed replacement cost).

• Personal belongings and loss-of-use: Contents coverage plus additional living expense if you must relocate after a covered loss.

• Valuable articles: Scheduled or blanket coverage for jewelry, fine art, wine, and collections (frequently with agreed value and low or no deductible).

• Enhancements: Options like cash-out settlement, ordinance-or-law upgrades, and equipment breakdown. (Flood and earthquake are usually separate but can be coordinated.)

Coverage varies by carrier; confirm limits and sublimits to match rebuild costs and the value of collections.

There is no single price; flood insurance is rated property by property. Your cost is driven by:

• Location and flood risk: How likely flooding is at your specific address (distance to water, local drainage, and past flood patterns).

• Elevation and foundation: How high your first floor sits relative to expected flood levels, and whether you’re on slab, pier-and-beam, or have an enclosure/basement.

• Home characteristics: Age, construction, number of stories, square footage, and replacement cost to rebuild.

• Coverage choices: Building and contents limits you select, plus your deductible; the higher the deductible, the lower the premium.

• Occupancy and use: Primary vs. secondary residence, rental use, or short-term rental can affect pricing.

• Policy source: National Flood Insurance Program (NFIP) vs. private-market policies; each rates risk differently and offers different terms.

• Mitigation and community credits: Flood openings, elevated utilities, materials resistant to water, and your community’s flood-mitigation rating can reduce cost.

Price reflects the property’s flood risk and the coverage you choose. To get an accurate number, quote your exact address and building details.

Required benefits vary based on company size, location, and workforce structure, but commonly include:

• Social Security and Medicare (FICA)
• Workers’ compensation insurance
• Unemployment insurance
• Family and Medical Leave Act (FMLA), if applicable
• Health insurance requirements under the Affordable Care Act (ACA) for applicable large employers

Tower Street helps business owners understand which benefits are legally required and which are optional, but strategically valuable.

Review the 2026 required compliances

The ACA establishes rules for health coverage, reporting, and affordability for applicable employers. Businesses with 50 or more full-time equivalent employees must meet specific coverage and reporting requirements.

According to consistent market research, employees typically value:

A premium is the price of protection. It reflects how likely a loss is and how much the policy may pay if a loss occurs.

Common drivers include:

• Coverage and limits: Broader coverage or higher limits increase cost; added endorsements also raise price.

• Deductible/retention: Higher deductibles usually lower premiums; lower deductibles raise them.

• What is insured (exposure): Home or building value and square footage; number of vehicles and annual miles; payroll, revenue, and headcount.

• Risk characteristics: Location, building age and construction, security features, driver records, and, where permitted, credit-based insurance scores.

• Loss history: Frequent or severe past claims typically increase price; clean records can reduce it.

• Operations and use: Higher-hazard work, heavy driving, or subcontracting generally cost more.

• Safety and controls: Alarms, sprinklers, telematics, training, and written safety programs may earn credits.

• Market conditions: Inflation in repair and medical costs, reinsurance pricing, and catastrophe trends affect all buyers.

Premiums vary by carrier and policy type; review coverage annually or after major changes.