LLC Trust Deed investing -- Insurance for the LLC?

[Account Closed]

Hi all,

For those investing in trust deeds or private lending in an LLC structure, do you place an insurance policy on the LLC?

I understand taking actions to mitigate piercing the LLC's corporate veil (e.g., don't commingle LLC and personal funds, keep minutes, use a valid statutory agent, etc.) and one thing mentioned is adequate business/LLC insurance. But for an LLC that is lending or investing in deeds, is this appropriate as a general LLC policy might protect against injury or property damage, company autos, etc. – none of which is applicable when the LLC strictly engages in paper transactions without employees and a physical office. Maybe an errors & omissions (E&O) policy might be applicable?

So, for those investing in trust deeds via an LLC do you have LLC insurance and if so, what type? Thanks.