Things To Consider When Starting Your Own Business

So if you are thinking about opening your own business, be aware of the different types of property and casualty insurance you might need before opening up shop!

Most small businesses need insurance. It is imperative that you research and become aware of the types of insurance you need before welcoming clients into your commercial property or sending sales representatives out into the field to sell your product. Different types of commercial property and casualty insurance include:

Workers’ Compensation

Workers’ compensation is insurance that covers the cost of medical care and compensation for income lost by employees because of an occupational injury or disease that occurred while at work. Different states have different worker’s compensation laws.

In the state of Tennessee, all employers “in the construction business or trades (construction service providers) that have one or more employees unless they are specifically exempted,” must provide worker’s compensation to their employees.
Effective March 1, 2011, owners of construction businesses are also required to carry workers’ compensation coverage on themselves or be listed on the Exemption Registry.
Every other employer in the state of Tennessee that has five or more employees must secure workers’ compensation insurance coverage for their employees either by purchasing a policy from an insurance carrier or by qualifying as a self-insured employer with the Department of Commerce and Insurance.
Employers in the coal mining industry must secure coverage if they have one employee. Family members, part-time employees, and corporate officers are included when determining the number of employees if they meet the definition of employee.” (1)

Business Owner’s Policy

A business owner’s policy combines property and general liability insurance coverage into one single policy. By purchasing this coverage together, business owners are typically able to achieve more competitive rates.

Commercial Auto

Commercial auto insurance encompasses liability and physical damage insurance for company-owned vehicles. It also includes company coverage of vehicles used for company business but owned by employees.

Excess Insurance

A commercial excess insurance policy provides additional coverage for liability claims exceeding financial limit specifications.

Umbrella Policy

An umbrella policy provides additional liability coverage for claims exceeding the financial limits of general liability, auto, business or employer’s liability insurance policies.

Additional commercial coverage options include:

Directors and Officers Insurance
Errors and Omissions Insurance
Fire and Flood Insurance
Product Liability Insurance

For further information regarding commercial property and casualty insurance, please contact Christin Sylar of Phoenix Insurance at (423) 892-6046. If you are considering opening your own business, she is fully licensed and qualified to advise you on what you need to get started.

www.tn.gov