In Connecticut it is best to have both E & O insurance and the protection of the corporate or LLC shield. The E & O insurance will protect you against negligence claims provided your insurance carrier is not looking for a way to deny the claim. If you are an LLC both you personally and the LLC should be named as insureds on the policy. This is because in many states the corporate officers and members of an LLC are personally liable for claims of negligence regardless of whether they were acting in a representative or personal capacity.

Generally contract claims have a longer statute of limitations than negligence claims. So you may run into a situtation in which someone is suing you on a claim for contract breach rather than negligence because the statute of limitations for negligence has expired. Generally e & o insurance will not cover contract claims, but in most cases the corporate or LLC shield will protect you provided you made it clear at the time you entered into the agreement that you were accepting the contractual offer in your representative capacity on behalf of the corporation or LLC.

Failing to properly designate the complete and correct name of the corporation or LLC on the contract and your job title as a representative of the corporation or LLC may render you personally liable on the claim.