Commercial liability insurance isn’t required for businesses that are operating in the state. Tennessee is a modified comparative negligence fault state, which means that a plaintiff can recover damages if he or she is less than 50% at fault. There are now personal injury award caps in the state and the statute of limitations for these types of cases is one year.
If your business employs five or more people, whether they are part time or full time, you have to have workers compensation insurance. For businesses that are operating in the mining or coal industry and have at least one employee, they are required to have workers compensation insurance. Since Tennessee requires auto insurance if you have a truck or car that is used for business purposes, you should purchase commercial auto insurance as well.
If you operate your business from your home, your homeowner's insurance likely won’t cover your business liability, or you will have limited coverage, so you should still consider commercial liability protection. An agent at Parks & Associates Insurance LLC can help determine which commercial insurance suits your business needs.
A policy will protect you from any financial loss that comes from claims of injury or damage caused by you or employees. Policies will cover bodily injury, personal injury, property damage, advertising injury, legal defense, and judgments. Personal injury includes libel, copyright infringement, wrongful eviction, slander, and similar acts that can cause damage to a person’s reputation or rights.
General guidelines recommend that a small business carry between $500,000 and $1 million in commercial liability insurance. However, every business is unique and if you have a more high-risk business then you should have more coverage. High-risk businesses include those that have high interaction with the public, such as a retail business.
Contact an agent at Parks & Associates Insurance LLC to get a quote on commercial insurance.