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Small Business Insurance Basics

Tennessee Business Insurance: Nashville, Brentwood, Franklin/Cool Springs, Nolensville

As a Tennessee small business owner, you need General Liability coverage to protect yourself from lawsuits and from damages that may arise from the services you provide. In addition, we’ll cover all your tools and equipment for theft or damage. At Johnston & Associates, our business package rates are among the lowest in the state of Tennessee.

Ask us about our specialized insurance programs for daycare centers, preschools, restaurants, churches, salons and dry cleaners. These programs are uniquely designed to cover the needs of your specific industry and provide broad coverages and first-class protection with competitive premiums.

Business Owners Policy

The most common policy for small businesses is the Businessowners Policy (BOP), which includes coverage for all major property and liability insurance risks as well as many additional coverages into one package policy suitable for most small businesses.

The BOP includes business income insurance, sometimes called business interruption insurance. This compensates a business owner for income lost following a disaster. Disasters typically disrupt operations and may force a business to vacate its premises. Business income insurance also covers the extra expense that may be incurred if a business must operate out of a temporary location.

To cover specific risks associated with a business, a variety of additional coverages may be added to the basic BOP. For example, if a business has an outdoor sign, the BOP doesn’t cover it unless coverage is specifically added for an additional premium. If a business relies on electronic commerce, the owner can add coverage for lost income and extra expenses in the event the ability of the business to conduct e-commerce is slowed down or stopped due to a computer virus or hacker.

Only small- to medium-sized businesses that meet certain criteria are eligible for a BOP. Factors insurers consider include the size of the premises, the required limits of liability, the type of business and the extent of offsite activity. Premiums for BOP policies are based on those factors plus business location, financial stability, building construction, security features and fire hazards.

Major Coverages

Most small businesses need to purchase at least the following four types of insurance:

  • Property Insurance
  • Liability Insurance
  • Commercial Auto Insurance
  • Workers Compensation Insurance

Other Types of Business Coverages:

  • Errors and Omissions Insurance/Professional Liability
  • Employment Practices Liability Insurance
  • Directors and Officers Liability Insurance
  • Key Employee Insurance
  • Umbrella Polices

Insuring Franklin, Brentwood, Nashville, and All of Tennessee.