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Which policies are recommended for Tennessee businesses?
Small businesses in Tennessee most often buy these types of insurance.
General liability insurance
This type of business liability insurance is important for all Tennessee businesses. It covers common third-party risks, and it's required by most commercial leases.
BEST FOR
- Customer bodily injuries
- Damaged customer property
- Libel and other advertising injuries
Workers’ compensation insurance
Workers’ comp insurance is required for Tennessee businesses that have five or more employees. It also protects sole proprietors from work injury costs that health insurance might deny.
BEST FOR
- Employee medical expenses
- Disability benefits
- Legal fees from employee injuries
Commercial auto insurance
This policy is required for business-owned vehicles in Tennessee. It covers injuries and property damage in an accident, along with vehicle theft, vandalism, and weather damage.
BEST FOR
- Accidents involving business vehicles
- Theft of a commercial vehicle
- Damage to a company vehicle
Business owner's policy
A BOP bundles commercial property insurance and general liability coverage in one plan. It's often the most cost-effective type of commercial insurance for a Tennessee business.
BEST FOR
- Slip-and-fall injuries
- Damaged customer property
- Damaged business property
Professional liability insurance
This policy, also called errors and omissions insurance (E&O), protects Tennessee businesses that provide professional services or advice. It covers lawsuits related to work performance.
BEST FOR
- Work mistakes and oversights
- Professional negligence lawsuits
- Late or incomplete work
Errors and omissions insurance
E&O, sometimes called professional liability insurance, is common with professional services in Tennessee. It can cover the cost of lawsuits related to your work performance.
BEST FOR
- Missed deadlines
- Accusations of negligence
- Errors and oversights
Cyber insurance
This policy covers financial losses from data breaches and cyberattacks. It's recommended for Tennessee businesses that handle credit card numbers and other sensitive data.
BEST FOR
- Customer notification expenses
- Fraud monitoring services
- Data breach investigations
Commercial umbrella insurance
Umbrella insurance boosts coverage on your general liability insurance, commercial auto insurance, and employer's liability insurance when the underlying policy reaches its limit.
BEST FOR
- Customer lawsuits
- Auto accident lawsuits
- Employee injury lawsuits
Commercial property insurance
This policy covers the value of a business's physical structure and its contents, such as inventory, equipment, and furniture. Bundle it with general liability coverage in a BOP for savings.
BEST FOR
- Fire
- Theft and vandalism
- Weather damage
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Which business insurance policies are required in Tennessee?
State laws affect which business insurance coverage you need. These policies are required everywhere in Tennessee, from Knoxville to Chattanooga.
Workers' compensation insurance
The state of Tennessee requires businesses with five or more employees, full-time or part-time, to carry workers’ compensation insurance. Corporate officers are included in this headcount, even if they are ultimately excluded from coverage in your policy.
Additionally, every business in the construction or coal mining industry must carry workers' compensation insurance, regardless of the number of employees.
Workers' comp covers medical costs for work-related injuries and illnesses, and provides disability benefits to injured Tennessee workers. It also protects employers from liability in the event of a workplace injury.
Commercial auto insurance
All vehicles with a commercial plate in Tennessee must be covered by commercial auto insurance. This policy covers the cost of accidents involving work vehicles.
Tennessee's minimum requirements for auto liability insurance are:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $15,000 property damage liability per accident
Trucking companies may need additional coverage to comply with regulations.
Though it's not required, personal vehicles driven for work purposes should be covered by hired and non-owned auto insurance (HNOA), as personal auto policies usually exclude business use. It can be added to commercial general liability insurance or a business owner's policy.
How much does small business insurance cost in TN?
Commercial insurance can be affordable for small business owners. Average premiums in Tennessee are:
General liability: $42 per month
Workers' comp: $48 per month
Professional liability/E&O: $58 per month
Factors that affect business insurance costs include:
- Your industry and risks
- Business operations
- Number of employees
- Location, such as Nashville or Memphis
- Policy limits and deductibles
How to get insurance for your Tennessee business
View video transcript.
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When you are ready to get insurance for your Tennessee business, you can complete Insureon's easy online application to get quotes from top-rated insurance companies.
FAQs about Tennessee business insurance
Review answers to frequently asked questions about Tennessee insurance.
How do I get a certificate of insurance for my business?
Insureon's licensed agents can help you find policies that fulfill Tennessee's requirements and match your business insurance needs. Once you've purchased a policy with us, you can download a certificate of insurance by logging into your account.
Can my company be held liable for a data security breach?
Yes – that's why cyber insurance is so crucial. Hackers are three times more likely to target small businesses, as they often have fewer resources to combat a threat.
Tennessee's data breach laws require businesses to report security breaches to affected residents, and the costs can escalate quickly. Cyber liability insurance lessens the financial impact by paying for notification costs, legal fees, and fines.
Does my industry affect state business insurance requirements?
Yes, your state may have special requirements for business insurance and bonds for your industry. You may also need a license depending on the work you do.
Contractors often need to carry general liability insurance or surety bonds to perform certain types of work. Having the right insurance and bonds helps you comply with state licensing requirements.
Real estate agents and brokers are required by state law to carry errors and omissions insurance, while other professionals who offer advice or services sometimes need this policy to get licensed.
Note that cities and counties may have their own laws, in addition to state laws.
How can I save money on Tennessee small business insurance?
As with any purchase, shopping around is one of the best ways to find affordable options. With Insureon, you can compare business insurance quotes from top-rated providers by filling out a free online application.
Other ways to save include bundling insurance products for a discount, and choosing less expensive coverage options, such as lower limits or a higher deductible. Learn more about how to find cheap business insurance.