As a risk advisor many conversations and questions arise regarding LLCs and insurance. Many clients say that they don’t need an umbrella or to be listed on the policy because they are protected by the LLC. The truth is that you personally don’t need to be liable to be sued. The article below is an example of a lawsuit where the LLC was the owner of the property and Robert and Jonathan Kraft (the members of the LLC) were sued individually.
Another extremely important aspect of insuring LLCs is making sure that coverage responds keeping your insurance advisor updated to any changes is extremely important with LLCs as the exposure changes to a commercial risk when property is placed within an LLC. This is a problem when the insurance policy is not changed to reflect this.