Running a small business is highly desired. While it takes time and effort, the rewards are great, or so they say. In the real-world, starting and running a successful small business takes a significant investment in time, money, and sweat equity. Small business insurance protects the business owner and their employees (if they have any) from the financial risks associated with unexpected, but very common events such as:
- Accidental death of a business partner
- An injured employee
- A natural disaster
- A server or hard drive crash
- A stolen laptop
- A lawsuit
All of these things happen every single day in the U.S.—people die in car accidents, super storms strike, and servers (with all your customer data, payroll records, and legal documents) fail. Even with the best backup systems, the clearest partnership agreements, and other protections, the cost of recovering from a disaster is often not enough to cover your needs. Whether your business is an LLC or a corporation, your personal and business assets are simply no substitute for small business insurance in Tennessee to cover you from losses.
Tips for Buying Small Business Insurance in Tennessee
Here are some important tips for buying small business insurance from the experts in small business – the U.S. Small Business Association (SBA):
- Take your time and find a reputable, licensed insurance agent. Just like finding a good mechanic or lawyer, finding a good insurance agent is worth the time you spend. Working with an agent that can shop many insurance companies is ideal.
- Assess your small business risks. In insurance jargon, this is called the process of underwriting, and it’s where your insurance company will review your application and determine whether it will cover all or a portion of your risks. When you work with a reputable insurance agent, you will often do a risk assessment ahead of this stage so that they can closely match your insurance plan with your needs.
- Review your small business insurance coverage annually. As your business changes – grows or shrinks, it’s important not to be caught unawares. If you purchased or replaced equipment, for example, that equipment should be covered by your small business insurance but it won’t happen automatically.
What Small Business Insurance Covers
It is nearly impossible to say definitively what small business insurance covers because there are so many types of insurance. Here are some examples:
- If you have general liability insurance (and you should), the policy covers damages if you, your employees, or your products or services cause harm to another party and you are found to be negligent.
- If you have property insurance, that property will be protected in the case of fire and other perils but you’ll need interruption coverage to protect your earnings if the business is unable to operate for a period of time.
- Commercial auto insurance for coverage on the vehicles themselves as well as physical damage to them.
Every small business owner, even if the business is home-based, needs to have a review of their risks and work with a reliable insurance agent who can help them choose small business insurance.
Contact us today at (601) 992-4444 for more information about buying small business insurance in Tennessee, or request a quote online and we’ll be in touch.