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Tennessee Business Insurance

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Business insurance in Tennessee

Small businesses are booming in the southern U.S.1 and these businesses employ an estimated 1.1 million workers in Tennessee.2

Whether you’ve just started your own company or are a veteran business owner, business insurance is essential to protecting your livelihood in the Volunteer State.

Business insurance in Tennessee helps protect your company from:

  • Accusations of injury and property damage
  • Accident damages in company vehicles
  • Allegations of work errors, including missed deadlines and incomplete projects
  • Legal problems if an employee gets hurt on the job

Next Insurance helps more than 1,000 types of small businesses and self-employed workers quickly get the coverage they need online at the best price. We specialize in small business insurance, so we can easily help you find a custom insurance package that is right for you.

Continue reading to find out about the most important types of business insurance in Tennessee or start a free instant quote to review options for your business.

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How Next can help you with business insurance in Tennessee

We offer a quick and simple way for you to get business insurance quotes online, purchase coverage and share your certificate of insurance. The entire process typically takes just a few minutes.

Our team of licensed, U.S.-based advisors can help you if you have any questions. 

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Business insurance coverage and requirements in Tennessee

Certain factors will determine the types and amounts of business insurance you’ll need in Tennessee. These include:

  • Regular business risks
  • Your company’s industry
  • The number of employees on your payroll

Business insurance packages in Tennessee might include:

How much business insurance in Tennessee covers depends on your policy limits and the deductibles you choose.


General Liability insurance

General liability coverage is one of the most important types of business insurance in Tennessee, and we recommend that most small companies in the state carry this policy.

If your company’s actions accidentally injury someone or destroy another person’s property, general liability insurance helps pay for damages. General liability coverage also at least partially covers attorney costs, court fees and settlements if someone names your business in a lawsuit.

For instance a self-employed Memphis-based handyman breaks a light fixture while making repairs at a client’s home. General liability insurance would help the business owner pay to replace the damaged item.

Cleaning and construction companies can add a general liability upgrade called tools and equipment insurance, which helps replace or repair business gear that is stolen, damaged or lost.


Commercial Auto insurance

All Tennessee drivers must purchase auto insurance that covers up to $50,000 in damages.3  But personal auto insurance is unlikely to provide protection for work-related accidents.

Commercial auto insurance helps pay for damages if someone has an accident in a business-owned vehicle. Such damages could include medical bills, property damages and lawsuit costs.

Here’s how commercial auto insurance could help a small business protect its bottom line:

A Knoxville-based IT consultant hits another car while backing out of a parking space at a client’s office, causing minor damages. Commercial auto insurance helps pay for repairs to the other vehicle, though the consulting company’s deductible would determine out-of-pocket costs.

Business insurance in Tennessee might include a form of commercial auto coverage known as hired and non-owned auto insurance. If employees sometimes rent vehicles for work or drive their own automobiles, this add-on helps cover accident damages.


Professional Liability (E&O) insurance 

Accusations of work mistakes, incomplete jobs and missed deadlines can hurt your business’s reputation. They can also create cash flow problems if you have to pay damages out of pocket or a client sues.

Professional liability insurance, also known as errors and omissions (E&O) coverage, helps pay for damages if someone claims that your negligence caused financial losses.

For example, a client says that a self-employed accountant in Nashville failed to file tax returns on time, resulting in hefty fines. The accountant’s professional liability insurance helps reimburse the client for the financial loss and would assist with lawyer fees, court costs and settlements in the event of a lawsuit.


Workers’ Compensation insurance

Workers’ compensation coverage assists employees who are injured on the job by helping pay for medical bills and a portion of lost wages while they can’t work.

Workers’ comp insurance in Tennessee is mandatory for construction firms with employees. Companies in other industries that have five or more employees must carry workers’ comp insurance, according to state law.4

But even if your company doesn’t meet the minimum number of employees to require workers’ compensation coverage, you should still strongly consider adding it to your insurance package to protect your business and its employees.

For example, an employee of a window washing firm in Chattanooga is injured when a scaffold breaks. Workers’ comp insurance would help the employee cover ambulance, hospital and physical therapy expenses.

How much does business insurance in Tennessee cost?

Small businesses in Tennessee spend a median of $45 each month for insurance packages.

How much you’ll pay depends on variables like:

Your business’s exposure to risks. Business insurance costs construction companies in Tennessee a median of $64 per month because the industry entails substantial risks of injury and property damage. Entertainment companies in the state pay $25 every month for coverage.

The types of insurance in your package. Choosing only a few types of insurance or policy minimums might seem like a good way to cut business expenses. But an expensive accident or mistake could cause your company to pay more than the additional coverage would have cost.

How many people you employ. Your business’s employee count will determine workers’ compensation insurance costs, so make sure you have accurate numbers before you get a quote.

Start a quote with Next Insurance today to explore coverage options for your business in just a few minutes.


More resources for Tennessee small businesses and self-employed workers

Check out these links if you would like to learn more about starting a business in Tennessee:

Article sources: 

  1. Paychex
  2. U.S. Small Business Administration
  3. Tennessee Department of Revenue
  4. Tennessee Department of Labor & Workforce Development