It protects you from the mistakes of others. The problem for the single owner is that they do a lot themselves, and for that, you need insurance. But when it

It protects you from the mistakes of others. The problem for the single owner is that they do a lot themselves, and for that, you need insurance. But when it works, it works. Imagine you dropship a faulty part to someone, so that there's no negligence by the sole owner. You'd much rather have the lawsuit go: Plaintiff vs. Your LLC & Vendor Co. than Plaintiff vs. You & Vendor Co.