Insurance for an LLC

6 Replies

My name is Paul and I own a sole proprietorship LLC which we will call "Gold" for this discussion. It is a pass through entity on taxes, and I am the sole member.

How important is it whose name is on the insurance? For example, if Gold LLC is on the deed and Paul is the name on the insurance, could they deny claims? Any attorneys or adjusters here?

Wonder if I have an insurance policy written in the name of Gold LLC, but the owner listed on the deed is Paul?

Basically, anyone seen any claims denied where a sole member LLC and personal name are used interchangeably?

I buy a lot of homes using my LLC and I get the insurance in the name of my LLC. I dont see why you would not do the same thing.

@Paul Passafiume It's pretty straight forward.

If the policy is in the name of Paul, and a claim comes in against Gold LLC, the insurance DOES NOT respond.

If the policy is in the name of Paul, and the claim comes in naming Paul, the policy responds.

Some carriers (esp in California) can only do it with a live person as the First Named Insured. The work around they use is then to list the LLC as an "additional insured"

Other companies can write it as an LLC.  

I had a similar question from another angle. My property is in LLC name and so is my insurance. I wanted to be named as additional or co-insured, but was told by insurer that don't do that because I was already covered as a member of the LLC (sole member). Fine, but when I read the binder, it has the standard line that members are covered "but only with respect to the conduct of your business" ("your" meaning the LLC's business). Not sure what that caveat means. The property is vacant land, I'm just worried that someone goes on it, gets hurts, and sues me, not the LLC. Will I be covered? This is in FL if that matters. That line seems to be standard across the country. Thanks.