Insurance is a vital part of protecting a small business from legal claims, and aspiring entrepreneurs and business owners should educate themselves on the benefits and gaps that cover a limited liability corporation, the most common incorporation structure for small businesses. An LLC insulates a business owner from personal liability, putting potential risk onto the company, not its owner. Insurance for that corporate structure can protect personal assets, business assets and a business’ employees and can cover business expenses while meeting legal requirements. Knowing which type of insurance to buy is crucial; there are policies for business owners, for home-based businesses, for professional liability, for general liability, for business income and for cyber liability, among many specific protections. Coverage usually excludes protection from damages caused by intentionally illegal acts, natural disasters, war or nuclear accidents.

Read more about business LLC insurance in this guide from Small Business Trends.