General Liability Insurance in Tennessee

You can save up to 25% in discounts.*

General Liability covers a wide range of incidents

Slip-and-fall injuries

Someone trips at your business, breaks their leg and files a lawsuit. Excluding employees.

Property damage

You accidentally damage a client or customer’s property.

Advertising injury

You’re sued for improper image use in your advertising.

Legal fees & defense costs

You need an attorney to defend your business in a lawsuit after a claim.

What is General Liability insurance coverage?

General liability insurance for small businesses in Tennessee can help provide financial protection when common accidents occur, such as:

Slip-and-fall injuries
Other injuries related to your business, excluding those involving employees
Damage to someone else’s property
Accusations of libel, slander or copyright infringement

General liability insurance, also known as commercial general liability (CGL), could help pay for related costs when the incidents listed above occur. For example:

A customer slips and falls on a wet floor in a Memphis laundromat. General liability insurance can help cover legal fees and damages if the business is found liable for the customer’s injuries.
A Nashville HVAC contractor accidentally damages the siding on a client’s home while installing an air conditioning unit. General liability coverage can help pay to repair the damage.

Your Tennessee general liability insurance can help protect your business financially when these types of accidents happen. CGL coverage could also apply in situations where you need to defend yourself against accusations of libel, slander or copyright infringement.

Is General Liability insurance required in Tennessee?

There are no statewide Tennessee liability insurance requirements for businesses.

However, local governments or licensing boards may require it depending on the type of work you do.

Although this state does not require businesses to carry general liability insurance, Tennessee entrepreneurs often get this coverage to benefit from its important protections, which include:

Gain financial protection

General liability insurance can help protect Tennessee businesses from certain financial costs when an accident occurs. You may find that lenders and banks require this type of Tennessee business insurance if you need a business loan.

Get more clients

Depending on your industry, your clients may require proof of coverage before agreeing to work with you. You may lose out on potential jobs without Tennessee general liability insurance coverage.

Sign a commercial lease agreement

Tennessee property owners and management companies may refuse to rent commercial property space to you without general liability coverage.

Secure licenses and permits

To obtain a business permit or professional license in certain industries, you may need to meet certain general liability insurance requirements.

Building contractors in Tennessee, for example, need proof of general liability insurance to get a business license.

For more details, see our guide to Tennessee general contractor license and insurance requirements.

What types of businesses might need General Liability insurance in Tennessee?

Most Tennessee businesses can benefit from general liability insurance because it can help cover common risks across a variety of industries.

Even if your business involves minimal risks overall, general liability coverage can offer important financial protection. It’s not uncommon for accidental injuries or property damage to happen in an office environment or small retail spaces.

For example, if a server at a Knoxville restaurant spills soup on a customer’s purse and cell phone, general liability coverage could help pay for replacements.

How much does General Liability insurance cost in Tennessee?

General liability insurance in Tennessee typically costs more for businesses operating in industries with high levels of risk. However, other factors can affect your monthly premiums, including:

What type of work you do
The number of people you employ
Where you operate your business
The policy limits that you select
Your insurance claim history

Tennessee small business owners can get affordable general liability insurance from NEXT online in about 10 minutes. At NEXT, half of our U.S. customers pay $45 or less per month for this type of coverage.**

Learn more about general liability insurance costs.

How NEXT Insurance helps Tennessee businesses

NEXT provides Tennessee general liability insurance policies designed for small businesses and self-employed workers.

It only takes about 10 minutes to get a quote, review your coverage options, choose your policies and download a certificate of insurance.

Start an instant quote online today.

Our team of licensed insurance advisors is standing by to assist you if you have any questions along the way.

Other types of Tennessee business insurance

General liability is just one type of business liability insurance Tennessee small businesses may need. You can help protect your business against other common risks with additional coverage.

Most Tennessee businesses also consider these business insurance options:

Workers’ Compensation insurance

Workers’ compensation insurance can help pay for medical expenses and lost wages if an employee gets hurt on the job.

Tennessee workers’ comp is required if you have five or more employees, or if you work in high-risk trades such as construction or coal mining and have at least one employee.

Learn more about workers’ compensation.

Commercial Auto insurance

Commercial auto insurance can help cover costs such as medical bills, property damage and rental reimbursement if you or one of your employees gets into an accident in a work vehicle.

All vehicles in Tennessee must have minimum auto insurance coverage of $25,00 per person, $50,000 per accident and $15,000 for property damage per accident.¹

Learn more about commercial auto.

Commercial Property insurance

Commercial property insurance can help protect your business equipment, inventory, furniture, brick-and-mortar structures and other physical assets. This insurance can help pay for replacement or repair costs if your business is affected by a covered event, like a fire or water damage from a burst pipe.

A business owner’s policy (BOP) combines commercial property insurance and general liability insurance. A BOP is often less expensive compared to policies which are purchased separately.

Learn more about commercial property insurance.

Professional Liability insurance (E&O insurance)

If a customer or client claims that you made a mistake while doing your job that has cost them money, professional liability insurance can help protect you financially. This type of coverage is often bundled with general liability for small businesses.

Learn more about professional liability.

Sources

¹ Why You Should Have Auto Insurance

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Let’s find the coverage you need for your business

Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.

General Liability

Protect yourself from accidents that cause physical injury or damaged property.

Professional Liability or Error and Omissions Insurance

Professional Liability/E&O

Shield yourself from lawsuits that claim your work errors caused financial losses.

Workers’ Compensation

Cover medical bills and lost wages if your employees have an accident at work.

Commercial Auto

Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.

Tools & Equipment

Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.

Commercial Property

Keep your building, inventory and equipment protected from fire or water damage.

Business Owner’s Policy

Combine general liability and commercial property into one policy to protect your business.

* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.

** The cost data presented here are based on NEXT active customers in the U.S. who purchased general liability insurance over the previous 12 months. These data should not be considered a substitute for obtaining a quote specific to your business. These data were updated in July 2022.