Three Reasons to Have Business Insurance in Tennessee


Business owners have a lot on their mind, and staying protected from unknown events is important, which is why having business insurance in Tennessee should be a top priority. While some business owners may not realize the full benefits of carrying insurance protection, there are some reasons that make it a no-brainer to have a certain level of coverage.


1. Reduce Liability


As a business owner, you are accountable for many things, especially if you deal with clients. When you have general liability insurance, you are protected from third party claims for medical costs and harm to someone else’s property. Depending on what type of business you run, other types of liability insurance that you may want to consider include Errors & Omissions, employment practices liability, and cyber liability.


2. Loss Recovery


While no one wants to imagine that a natural disaster, vandalism, or theft can occur at their place of business, the truth is that it happens quite a bit. Business insurance helps to cover the costs of damage, and very little of the costs need to come out of the business owner’s pocket, which is important in regards to cash flow and long term gains.


3. Meet Workers Compensation Requirements


In regards to business insurance in Tennessee, there are specific requirements that pertain to workers’ compensation. According to the Department of Labor and Workforce Development, employers that have five employees or more must carry workers’ compensation coverage. Certain industries, such as construction and mining, require coverage for those with one or more employees. While these circumstances require that you carry workers’ comp insurance, you may elect to carry this coverage even if you have fewer employees.


If you are a business owner and are on the fence about purchasing business insurance, keep in mind that not having it can make the difference between a thriving business and a failing one. Even a basic policy can cover the general needs of your business to ensure that it runs smoothly.