Insurance for Small Business Owners in Tennessee

Commercial Auto Insurance.

Tennessee mandates automobile coverage, and for a small business, this means carrying minimum benefit amounts for bodily injury liability ($25,000 per person/$50,000 per accident) and for property damage liability ($15,000 per accident).

Workers’ Compensation Insurance.

For businesses with 5 or more employees in Tennessee, Workers’ Compensation insurance is a state requirement. And some industries, like coal mining, are required to carry insurance for even a single employee. This type of insurance typically covers medical expenses related to employee on-the-job accidents or illnesses.

Small Business Owner’s Insurance.

Combining two types of coverage—property insurance and general liability—a Business Owner’s Policy (or BOP) is a cost-effective coverage package for small businesses in Tennessee. The property coverage extends to building, machinery, and personal property damage, while the liability coverage typically extends to injury claims made by customers.

General Liability Insurance.

Often required for leasing a commercial space, small business owners can choose general liability coverage individually. This type of coverage focuses on third-party damage—such as customer accidents or claims made regarding false advertising.

Professional Liability Insurance.

Professional liability insurance is often referred to as "errors and omissions insurance." For Tennessee businesses providing expertise and consulting services, this coverage can protect them from costs resulting from work mistakes and errors, missed deadlines, incomplete work and professional negligence lawsuits.

Cyber Liability Insurance.

Even small businesses can experience a data breach or cyber attack. Cyber liability coverage can aid in the recovery from malicious hacking and cyberattacks by paying related customer notification and fraud monitoring costs, as well as associated system damages and resulting legal fees.