Tennessee, home to eight Fortune 500 companies, including FedEx, Dollar General, and AutoZone, has also been ranked several times on the 2011 CNBC Top States for Business: second in cost of living, fifth in intrastructure and transportation, eighth in business friendliness, and ninth in workforce. With all these impressive accolades, it stands to reason why conducting business in Tennessee is a business owners dream. Nicknamed the “Volunteer State,” Tennessee has a number of large industries including music, manufacturing, agriculture, and tourism. Memphis, Tennessee is known as “Birthplace of the Blues” and Nashville, Tennessee– labeled as the country music capital of the world — has over 100 recording studios. Manufacturing in Tennessee consists of a variety of products including textiles, apparel, furniture, leather, chemicals, and electrical machinery. The state is also a leading producer of tobacco, livestock and dairy. While there is a plethora of opportunities in the state, small business insurance in Tennessee is also plentiful, offering business owners a variety of insurance policies for optimum protection.
Standard Business Insurance Coverages in Tennessee
Business Owners Insurance in Tennessee is an insurance policy held by an organization, commonly referred to as a BOP, as an expansive small business insurance package that provides a number of liability coverages in one bundle. A BOP integrates two chief coverages in a single policy: property insurance and general liability. The insurance coverage for employers in Tennessee transfers risk away from the leader of the small firm to the insurance company by providing protection for a number of liability, such as buildings and legal liabilities. Common indemnity claims that small business owners insurance coverage protects you from are: injury to an employee, wage loss, specialized liability claims, important papers, equipment failure, fire, authorized liability claims, employee fraud, money and securities, and property claims. Additional components for the Tennessee-based company may be supplemented from the original BOP coverage depending on the feasible risks of the business.
General liability insurance in Tennessee is provided to small business leaders as protection from financial burdens that may emerge from thoughtless acts, omissions, or both, caused by the employer or business professionals that sometimes result in physical harm or property damage. Some of the exposures typically covered under general liability insurance are contractual liabilities, liabilities from products sold, and accidents on the premises of the business. The injury or damage might be from lack of concentration and unintentional. General liability insurance for business owners in Tennessee may be a single policy or can be part of combined policies.
A package policy is an special type of insurance policy for a business proprietor that includes several types of insurance placed into one insurance policy, a bundle. The typical package policy in Nashville, Tennessee combines general liability insurance (described above) and commercial property (described below); keep in mind a package policy may be constructed to include nearly every type of coverage, which varies based on the needs of the business. A package policy is tailored to small business employer as it allows for an excellent range of flexibility to deelop to a policy primarily for the unique needs and risk exposures of the company.
Commercial Property Insurance in Tennessee includes valuable documents, building and structure, equipment, products, furniture, inventory, and personal property is as important protection coverage for a range of Tennessean commercial business property. Commercial property insurance offers protection for entities in Memphis, Tennessee against various types of perils, including windstorm, hail, explosion, fire, burglary, wreckage, natural disasters, and lightning strikes. Service industry companies, manufactures, retailers, and not-for-profit entities can all benefit from from commercial property insurance.
The southeastern state of Tennessee requires that any company with employees working for them have Workers’ compensation insurance to provide coverage against employee work-related injuries and occupational illnesses. Workers’ compensation insurance in Tennessee is a no-fault, state-mandated insurance structure that offers benefits to workers who suffer injuries or illnesses while on the job. Because Workers’ compensation is required in Tennessee, the enterprise may be liable for fines and civil penalties if they fail to carry it, and can also lead the business to being liable for the cost of injuries sustained by their employees. By having workers’ compensation insurance for your Tennessee small business, employees benefit from medical care and lost wage coverage with the promise that they will not sue their employer as a result of the injury or illness.
As a Tennessean business owner with at least one vehicle, your company should be protected by commercial auto insurance. Commercial auto insurance in Tennessee offers financial security to business executives and their employees by providing coverage for that company’s use of trucks, vans, cars, and other vehicles. Commercial auto insurance provides protection against damages and medical costs that result from accidents, as well as vandalism and damage from natural disasters such as hail storms. Coverage for Tennessee small firms includes vehicles which are owned, rented, leased or hired by the business leader, and includes vehicles owned by the drivers who use their vehicle for business operations. Consequently, it’s recommended that businesses obtain a commercial auto insurance policy — called non-owned commercial auto insurance — if drivers use their own vehicle for work duties.
Commercial umbrella insurance in Tennessee is strategically designed to fill in the gap between your general liability insurance and your commercial auto insurance; these aforementioned policies may have coverage limits and not cover all expenses from events that are deemed disastrous and unexpected. Umbrella insurance is a recommended resource for employers in the state of Tennessee. Umbrella insurance is a great way to have additional security for property damage, bodily injury, or other types of liabilities.
Some Additional Business Insurance Coverages in Tennessee to Consider
Errors and Omissions insurance policies provide employers in Tennessee and their personnel with protection from lawsuits and claims made by customers or clients for negligent acts, neglectful duties, errors, and omissions that might be made through work-related duties and result in a loss of income or production on the part of the client or customer. Errors and Omissions insurance in Tennessee provides help with legal defense and court costs, as well as with settlements, which are all stated on the insurance contract. Just like cosmetic surgeons have malpractice insurance, owners of businesses should have errors and omissions insurance if they offer services or consulting advice, whether they do so directly or through the use of contractors.
Professional liability insurance in Tennessee offers added protection for workers, including general contractors, financial analysts, and plumbers from being liable for the legal cost of defending against a claim of carelessness, mistakes, failure to perform, or oversight made by a client, along with damages owed in that claim. The coverage’s sole focus is on the financial hardship on the part of the client from this particular kind of claim with respect to the goods or service provided by the staff. Even if the legal actions turn out to be unconfirmed, professional liability insurance may offer claim coverage for the Tennessee-based firm. Professional liability insurance in the “Volunteer State” is required in the medical and legal industries by law, but is also required by contract agreement in other professional industries.
Employment practices liability insurance, most often, is based on the acts and laws from Title VII of the Civil Rights Act of 1964, Age Discrimination in Employment Act, and Family and Medical Leave Act, which can vary from state-to-state. However, all laws are enforced nationwide by the Equal Opportunity Employment Commission (EEOC). Employment Practices Liability Insurance in Tennessee (EPLI) provides protection to professionals toward accusations of discrimination, wrongful termination, invasion of privacy, breach of contract, sexual harassment, mental distress, neglectful hiring and promotion choices.
Fidelity Bonds in Tennessee
Fidelity bonds in Tennessee provides small organizations with extra security against losses, such as embezzlement, fraud, or robbery by one or more of their employees. Compensation from these types of acts is usually not plausible since the money is often already spent, so fidelity bonds offer businesses a safeguard against having to endure these types of financial losses. Even entities with additional protection against these types of dishonest acts, including employee screening, internal control, and close supervision, it doesn’t always cover everything. Monetary losses suffered from professional thefts of money, property, or securities, are covered under fidelity bonds insurance in the state of Tennessee. The three main types of fidelity bonds include business service bonds, standard employee dishonesty bonds, and ERISA bonds.
Surety Bonds in Tennessee
A surety bond is a compulsory agreement or contract shared mutually between three parties: the principal, obligee, and insurance company, or surety. The surety bonds represent a guarantee they will agree to a specific amount if a party fails to meet their commitment, such as fulfilling the terms of the contract. A surety bond offers security to the recipient from financial hardship if the contract is not fulfilled, while the surety company assumes the liability for not performing. A surety bond is typically required for financial compensation. Owners of Tennessee-based entities may require a surety bond to assure payment of utility bills or state sales taxes, while a contractor may need to post a bond to pledge work or be eligible for licenses. While surety bonds in Tennessee are generally used in the construction industry, surety bonds are also used by mortgage brokers, medical suppliers, auto dealerships, health club owners, notaries public, and others. Since many small companies need and use bonds, you can choose from a number of different types and features of Tennessee surety bonds, which include a myriad of guarantees.
Whether you own a musical instrument store in Memphis or a boot store in Nashville, it is recommended that your Tennessee-based business be protected with optimum coverage. While you may have traditional business insurance, it most likely has coverage limits and will not protect your business and assets entirely from risk exposures like damage from accidents, fire, and natural disasters, and additional risks. Give your business the best safeguard against these types of unforeseen occurrences with additional business insurance policies, and rest assured knowing the business is safe.