Steve Jones's answer is basically right.
The point is that if you create a Ltd company then there are two legal persons: you and the company. If "your business" is the company and it is sued, then, except where you have done various things you should not have done, all they will be able to take are the assets of the company. They aren't suing you.
In the typical case where there is a breach of contract and they sue the company, you could be reasonably confident of being safe.
But creating a limited company doesn't immunise you from being sued in the normal way. If you committed fraud, breached confidence, or defamed them (to give 3 examples) then they could sue you.
There are ways of what the courts call "piercing the corporate veil" but they will generally involve some form of personal misconduct as director or something else which goes beyond the sorts of things I'd hope you are doing in business.