Bakersfield Business Liability Insurance

Bakersfield business liability insurance is absolutely necessary to protect a small company. As a business owner you face serious risks and you must protect your assets in the event of legal liability, or natural disaster. Just as you need to insure your health, your car, and your home, you need to insure your Bakersfield company.

The amount of California business general liability insurance coverage you need will vary depending on what kind of Bakersfield, CA business you are running, and what your specific risks are. For example, if you are renting office space in downtown Bakersfield, you need to insure the property and also purchase Bakersfield business liability insurance. If you are opening a store with expensive antiques, you need to insure both your property and your assets.

Also, you may be considering starting a limited liability company. If so, it's important that you understand exactly what a limited liability company is, and how that will impact your insurance. An LLC is different from a corporation or partnership, and it's also different from being a sole proprietor. It's important that you will not be held personally liable, which is one of the advantages of founding an LLC.

Business Insurance Basics

Your Bakersfield business liability insurance will protect your company from third-party claims made against you. You're protected in the case of claims related to property damage, personal injury, bodily injury and advertising injury. Bodily injury is the easiest to understand, and it's one of the most common examples used in the attempt to explain Bakersfield business liability insurance. liability insurance for small business

If someone falls and slips on the stairs of your office, he or she may attempt to sue you. This kind of lawsuit could easily put a small California company under. So, you need to have Bakersfield business liability insurance to protect you from these kind of claims, and compare lliability insurance for small business practices . Even if the claim is completely meritless, and your Bakersfield, CA company is not at fault, legal fees and potential damages can be outrageously high.

Personal injury is a little more complicated. Personal injury is related to libel, copyright infringement, and so forth. Advertising injury is a lot like personal injury, although the claim must be related to your California company's advertising. The complicated thing about advertising injury is that it's difficult to define "advertising". Some forms of advertising, such as commercials and magazine pages, are obvious, but others are more subtle. You may want to find out how your Bakersfield business liability insurance policy defines advertising.

As for property damage, if someone claims that your company has damaged their property, your Bakersfield business liability insurance will protect you from this claim. Your insurer has the duty to defend and the duty to indemnify. In other words, your California insurer will cover all legal costs as well as potential settlement or damages.

However, while your Bakersfield business liability insurance protects you from claims related property damage, it does not protect you from the property damage itself. So, you need to have an additional insurance policy that protects your actual property in case of a natural disaster. If there's a fire, theft, earthquake, or other incident, your Bakersfield business liability insurance will not cover your costs.

You may want to consider what is called the business owner's policy (BOP) which may be a less expensive way to cover all your insurance needs. A BOP covers both liability claims and your property insurance. So, you'll be insured and protected against legal claims as well as natural disasters. The business owners policy may be a less expensive way to cover all of your risks with the appropriate insurance.

Limited Liability Companies

An LLC allows you the protection of a company. A Bakersfield LLC is consider a separate entity, much like a corporation, though it should be referred to as a company, not a corporation. Members (owners are not called partners or shareholders) will not be held personally liable unless they sign personally (and not on behalf of the LLC).

LLCs offer flexible profit distribution, and are more informal than corporations. Corporations are required to keep formal minutes and have meetings, but LLCs don't have to. LLCs are, generally, much easier to operate than corporations and easier to set up. Also, LLCs may provide significant tax advantages, as you most likely won't have to pay a corporate tax and a personal tax, which can lead to significant savings.

On the other hand, forming an LLC is more difficult than forming a sole-proprietorship. It is a good idea, for example, to draft an operating agreement, and you will have to file articles of organization with the Secretary of State a pay the necessary fees. It's probably a good idea to consult with legal counsel, as well as a Bakersfield business liability insurance agent when you are determining your company's structure.

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