Business Insurance

Why Get Business Insurance in Tennessee
Business insurance refers to a wide range of insurance coverage that can mitigate, minimize or compensate for the risk that your employees and/or your business are exposed to. Business insurance also includes coverage mandated by Tennessee law such as worker’s compensation, unemployment insurance and social security. In some states, state disability coverage is also compulsory. Most business owners invest enormous amounts of time on developing products, designing advertising campaigns and recruiting the best employees. But they give little thought to their insurance policies. Without adequate insurance coverage, a business and its owner can be financially ruined in the event of an accident or storm. Tennessee business insurance provides business owners with financial protection and shields them from the terrible prospect of losing their business due to inadequate insurance coverage.

Worker’s Compensation in Tennessee
The system of worker’s compensation in Tennessee is compulsory. This means all employers are required by law to provide worker’s compensation insurance for their employees. Waivers may be allowed. There are a few exemptions to the law:

  • Employers engaged in the construction industry with less than five employees
  • Employers who work in the agricultural industry
  • Employers of domestic workers

All of these employers may choose to provide worker’s compensation coverage voluntarily because the risk for civil lawsuits still remains. Worker’s compensation insurance may be procured through a private insurance provider or through self-insurance.

Employees who are entitled to worker’s compensation benefits may receive full medical benefits without time or monetary limits. Disability and death benefits are also provided.

Coverage for Tennessee Business Insurance
Sometimes there are terms found in your Tennessee business liability insurance policy such as “uninsurable situations” and “covered elsewhere.” These terms signify that there are some instances wherein the incident is supposed to be covered by another policy. A good example of this relates to automobiles- particularly vehicles owned by employees. These vehicles are not covered unless a special Tennessee auto policy is obtained. This additional coverage takes over for whatever their own personal automobile coverage leaves off when their vehicle is used for business purposes. The main reason why the general Tennessee business liability insurance policy does not cover automobiles is because each vehicle is supposed to have its own policy. However, when their vehicle is being used for business purposes there may be restrictions on their automobile policy such as a clause stating that they are not covered if they are using their vehicle for business purposes. This is where add-ons like automobile coverage come to the rescue.

Another term that may be found in your Tennessee business liability insurance policy is the term “covered only by extra modification”. It simply means that options are readily available that will enable you to do modifications on your policy. The modification referred to in this case is the add-on coverage that you are allowed to add to your policy such as professional liability insurance and employers’ liability insurance.

The Tennessee business liability insurance or liability insurance is not designed to cover nuclear or warfare activities. These are “uninsurable” situations which fall into a special category of insurance.