united-states, llc, insurance, michiganI am trying to start my own private therapy practice.
I’ve already established an LLC, and I am looking to get liability insurance.
Do I need to get liability insurance as an Individual, or for my LLC?
I will be the only one providing therapy.
This is a question that will depend on where you want to practice. If you’re an American, it will depend on the laws of your state.
In almost all businesses, insurance should be held by the entity doing business. That means if clients are entering into agreements with an LLC, then the LLC should hold the liability insurance. However, some states put strong restrictions on the way liability works for certain highly-skilled professionals doing high liability work (usually in the medical fields). So depending on the laws where you live, you might need to hold insurance as an individual rather than, or in addition to, having insurance for the LLC.
You can ask your insurance salesperson about this and you’ll probably get a correct answer, however they are not bound to any fiduciary responsibility. So if you want a truly correct answer that is tailored to your exact situation, you need to ask a competent attorney where you live.
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