How much Insurance??

I am opening up an inspection company on my own in Illinois. I visited an insurance agent to get a quote on general liability. She told me I should look at a $1,000,000 policy. That seemed a bit high to me, but I thought I would ask here and find out with is truely necessary. Also anyone know the best way to go about creating an LLC???

Matt Murphy
Murphy Home Inspections

Matt what state are you in.

From his accent I’m guessing Illinois :slight_smile:

I see the same…:cool:

Matt, I want only enough liability insurance to cover me in the event I need it and no more. Take your best guess. 1 Mil is not out of line but the cost for same may be…check around.

I had my attorney do the LLC.


General Liability covers a lot and $1 Million is reasonable. Lets say you do an inspection and in the process of re-assembling the furnace you nick the gas line. That night the house explodes and the occupants are burned. Will $1 million be enough? Or you are driving to a job and the ladder flies off your truck, goes through the window of a minivan injurying the occupants. Will $1 million be enough?

GL is inexpensive compared to E&O, get what you think you need to protect your assets.


Consult with an attorney for your LLC. $1,000,000 may seem high for limits on insurance, but the cost difference is minimal, at least through my agent, who really takes care of me. GL is cheap also. I pay around 2600 for everything with a 2500 deductible. You can get lower deductible but the cost increases. Good idea for E&O and GL together as a package. My agent is Marla Davis, she can write in all 50 states, and her email is

Setting up your LLC correctly is a big jump in minimizing monetary risk. Yeah you could be sued by anybody at any time, so get it done correctly. Trying to do it yourself and save a couple of bucks and getting it wrong will cost in the long run. Good luck!