Business insurance is an essential part of a solid financial plan for any business. It protects your business from unexpected losses, allowing you to move forward. Many businesses don’t take the time to research and compare coverage options, so they end up with higher premiums or insufficient coverage. Business owners have a lot on their plates running their companies, so they may not have enough time to research and compare insurance policies. We’ve evaluated the best business insurance providers based on coverage, financial stability, customer satisfaction, and overall quality.
Coverwallet began its journey in New York City in 2015 operating under the
Aon Insurance banner. At Coverwallet, you can access everything you need to
keep your company well-protected at an unbeatable price.
With a 100-year history of insuring businesses, Hiscox is well-known across
America and globally. With more than 500,000 small business customers,
Hiscox is fully aware and trained in the unique risks a business can face.
Thimble provides business insurance that can be tailored to your business by
the year, month, day, or even the job. At Thimble, the process to getting
the right business insurance is simple, scalable, and flexible.
What are the requirements for business insurance in Tennessee?
All businesses that have employees, even family members, must purchase workers’ compensation insurance. Whether you should get commercial general liability insurance or some other form of business insurance is up to you. Still, most small businesses will want to opt for a BOP or a CGL policy at the very least.
If your employees drive for work, commercial auto insurance is required. If you own vehicles that your employees drive, you need to have a commercial auto insurance policy in place. If your employees use their cars and have personal auto policies, your business will be covered under their policies if they’re in an accident while driving for work. However, it’s best to check with your agent first to make sure.
If you rent or lease office space, general liability coverage may be required by your landlord as a condition of your lease agreement.
What are the types of business insurance in Tennessee?
Common types of business insurance:
General liability
General liability protects your business from claims for bodily injury, property damage, and personal injury (such as libel or slander) arising from your business operations. General liability is the most popular form of small-business insurance, says the Independent Insurance Agents & Brokers of America (IIABA). It will cover court costs and settlements up to the limit of your policy, but there are many exclusions:
Expected or intentional injury or damage (this one is obvious)
Contracts that require higher limits than you have purchased
Professional conduct that falls outside the scope of your business’s operations (a landscaper is not expected to know how to design a golf course)
Workers compensation
This insurance covers employees’ medical expenses and rehabilitation costs if they are injured on the job or become ill from long-term work-related exposure to hazards such as chemicals or loud noise. Workers comp also pays for lost wages and death benefits for workers killed in work-related accidents. It doesn’t cover workplace injuries that result from an employee’s intoxication or illegal drug use.
Professional liability
If you offer professional advice or services, you need professional liability insurance to cover malpractice claims against your company. Its technical name is errors and omissions (E&O) insurance, which protects against claims brought by customers who believe you failed to provide adequate services or advice. Professional liability policies typically exclude coverage for breach of contract, criminal acts, and bodily injury or property damage resulting from work.
Business interruption
This is generally an additional coverage that must be purchased separately. It covers lost income, operating expenses, and other costs when an insured loss disrupt business.
Typically, business interruption insurance won’t cover damage to property by a flood or an earthquake unless you purchased coverage for those perils separately. Also, this coverage doesn’t cover business income you’d lose from power outages caused by storms or other catastrophic events that don’t include significant property damage.
Commercial Auto insurance
Commercial auto insurance is a type of business insurance that can protect you and your business from financial losses if you get into an accident while driving for business purposes. The commercial auto insurance policy is typically used to protect vehicles a business owns, but it can also cover your vehicle when used for business.
Commercial Auto insurance policies have many exclusions, and you need to be aware of them when choosing a policy. Here are some common exclusions:
Damage from wear and tear, freezing, mechanical breakdown, or overheating
Intentional loss
Ordinance or law violations
How much does business insurance cost in Tennessee?
Several factors affect your insurance premium, including:
Company size: Having more employees means greater risk. It’s also important to consider whether your employees have dangerous jobs. For example, if you own a construction company with many workers, you’ll likely pay more for insurance than you would if you owned a small consulting firm.
Your business location: If your business is located in an area with a high number of claims or high crime rates, your policy may be more expensive than one in a safer area. This is because the chances are higher that something will happen to cause damage at those locations.
Claims history: If your business has a history of insurance claims, companies will likely charge higher premiums for their policies. This could be due to negligence or due to higher-than-average risk if your business is located in an area prone to theft or natural disasters.
Coverage limits: you may need additional coverage for specialized risks associated with your business activities, such as pollution liability or cyber liability coverage. For example, if your business manufactures food products, you need product liability insurance to protect against product defects or contamination claims.
Business Activities: The activities your business engages in will impact the risk level of your business and the cost of your business insurance premiums. For example, a law firm is less likely to face expensive lawsuits than a manufacturing company that produces hazardous products.
How to choose the best business insurance in Tennessee
To find the best value, it’s important to know how to find and compare business insurance. Here are some tips:
Consider how much coverage you need: There are many different types of insurance for small businesses, but not all are relevant to every company. Consider how much coverage you need: This can depend on the type of business you run, the size of your enterprise, its location, and the state in which it’s located.
Check on your local laws: If your company works in a regulated industry, there may be specific types of insurance that are mandatory. For example, many states require companies with employees to carry workers’ compensation insurance.
Shop Around: Many insurance providers out there cater to small businesses. Take some time to research what they offer and compare their quotes.
Experience: You want to be sure that your chosen insurer has experience in dealing with businesses like yours and understands your needs. If they have plenty of experience in this industry, they will probably understand exactly what kind of cover you require and what level of risk it poses. This means that they can tailor a policy specifically for you rather than giving you a generic template that may not suit your
Know what’s included and excluded: make sure you read any fine print carefully to understand your policy’s restrictions and limitations fully. If you have any questions about your coverage, don’t hesitate to ask someone from the commercial insurance company for clarification.
