Cookeville is an economic hub in the Cumberland region of Tennessee. Thousands of businesses can be found in this city. Manufacturing companies make up the largest sector of the Cookeville economy, followed by retail trade companies, which employ more than 4,000 local residents. Business insurance helps these companies stay profitable when disaster strikes.
Choosing the right products to include in your business insurance policy package can be a challenging task, but you don't need to tackle it alone. Independent insurance agents in Cookeville can help by identifying your company’s specific risks and advising you about the types of policies that can cover against each of them. Find an insurance agent near you to learn more.
Why Is Liability Insurance Important for Businesses in Cookeville?
Liability insurance is an extremely important part of every business insurance policy package. It is designed to cover court costs, legal fees, and damages if your business is sued for a covered event. All business insurance policies include, at the very least, commercial general liability insurance, commonly referred to as CGL. This standard coverage has a few main components:
- Premises liability insurance: This covers third-party injuries, illnesses, and property damage that occur due to an incident on your business property.
- Product liability insurance: This covers third-party injuries, illnesses and property damage that are caused by defects in products your business produces, sells, or promotes.
- Advertising liability insurance: This covers against lawsuits related to advertising mishaps such as copyright infringement and deceptive pricing.
For many businesses, CGL alone can't cover against all potential liability risks. An independent insurance agent can help you identify any other liability exposures your particular business may have, and can recommend the appropriate policies to cover against them. Some of the many commercial liability insurance products available to your Cookeville business are:
- Employment practices liability insurance: This covers lawsuits related to accusations of perceived illegal business practices such as harassment, discrimination, breach of contract, and wrongful termination.
- Environmental liability insurance: This is necessary for businesses that use or produce toxic substances. It can cover clean-up costs and damage if an accident leads to these substances polluting the ground, water, or air.
- Cyber liability insurance: This covers businesses against financial losses and liabilities if hackers access their computer systems and steal sensitive customer data such as financial details, credit card information, Social Security numbers, or personal data.
- Commercial vehicle liability insurance: This is required if your business owns or operates vehicles. It can protect against the increased liability costs your business can face if one of your drivers is responsible for a collision.
You can learn more about these and many other commercial liability coverage options by consulting a local independent insurance agent.
Does Cookeville Business Insurance Cover All Your Business Assets?
All business insurance policies include commercial property coverage. This is designed to compensate your business for loss or damage to your commercially owned property, including office furniture, computers, tools, machinery, merchandise, inventory and more.
In Cookeville, businesses are most likely to experience property loss or damage due to such hazards as accidental fires, severe storms, high winds, hail, and potentially even tornadoes. The risk of tornado damage in this city is 45% greater than the national average.
Sometimes, commercial property insurance is not enough, and specialized property insurance products are necessary. Depending on the nature and scope of your business, your insurance agent may recommend adding:
- Inland marine insurance: This covers your portable business property while it is in transit or is being used or stored away from your place of business, such as at a job site.
- Boiler & machinery insurance: This pays for the cost to repair or replace broken-down business machinery and equipment and can even cover business losses associated with machine malfunctions.
- Bailee's insurance: This pays for loss or damage to your customers’ property when it's in your custody, care, or control. This can help to prevent your company from facing potential liability lawsuits.
- Flood insurance: This is necessary for businesses that are at risk of flooding, since commercial property insurance won't cover flood damage. In Cookeville, businesses near Pigeon Roost Creek and Cane Creek are most at risk, but flood damage can happen anywhere when heavy prolonged rains fall.
An independent insurance agent can help you be sure that all of your business assets are appropriately covered, and that your coverage limits are high enough to enable you to rebuild, repair, or replace, when necessary.
How Can Business Interruption Insurance Help Cookeville Businesses?
Major disasters like structure fires can do more than just destroy your commercial property. If damage is severe and widespread, your business could be forced to remain closed for a long time while repairs are made. This is particularly true when damage hinders repair efforts, such as following a devastating tornado.
An extended closure can be financially devastating for most businesses, especially small companies that rely on daily revenue streams to stay open. Business interruption insurance provides a solution to this problem.
Disasters in Tennessee
- Number of federally declared disasters in TN since 1953: 72
- Most common reasons for declared disasters: severe storms, floods, and fire
- Average number of tornadoes in TN per year: 29.1
Business interruption insurance is designed to provide your company with a continuation of income when a covered event leads to a long-term closure. That way, your business can afford to pay regular monthly expenses such as utility payments, loan installments, and employee salaries, even though your business is temporarily unable to generate revenue.
Do Cookeville Businesses Need Workers’ Compensation Insurance?
Workers’ compensation insurance is designed to cover the cost of medical treatment, lost wages, and other expenses related to workplace injuries and occupational illnesses. In the event of a fatal work-related injury, this insurance can also provide long-term benefits to surviving family members and dependents.
In the state of Tennessee, all businesses with at least five regular employees are required by state law to have workers’ compensation insurance. However, for businesses operating in the construction or coal mining industries, this coverage is mandatory regardless of the number of employees.
There are a few exceptions. Coverage is optional for:
- Sole proprietors
- LLC members
- Domestic workers
- Independent contractors
The cost of workers’ compensation is based mainly on the types of jobs your employees do. The greater the risk that your workers will suffer significant injuries, the higher the price for coverage will be. A local independent agent can help you review your costs and can match you with an insurance company that specializes in covering businesses in your industry.
What about Insurance Products for Employee Benefits Packages?
Even though health care coverage is expensive, subsidizing it for your employees can have cost-saving benefits for your business. Studies conducted by human resources managers have demonstrated that when businesses offer employee benefits like vacation time, sick time, life insurance, and health insurance, they find it easier to attract and retain ideal employees.
- Annual amount spent on healthcare coverage by TN businesses: $808 million
- Average annual cost of health care in TN: $5,198/person or $15,214/family
There are many different life and health insurance products available for you to choose from. This can make it difficult to determine which policies are the best to include in your employee benefits package. A local independent insurance agent can explain the pros and cons of each of your various options so you are able to make an informed decision.
Why Work with an Independent Insurance Agent in Cookeville, TN?
Every business has its own specific risks and exposures. That's why insurance companies enable you to fully customize your commercial insurance coverage. An independent agent in Cookeville, TN can offer guidance and advice and can shop around to help you find the best and most affordable business insurance policies to cover your particular company.
Contact an independent insurance agent with an office in or near Cookeville to learn more. You will soon discover how easy it can be to build a comprehensive, yet affordable, business insurance policy package.
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