By the General Liability Guide Editorial Team. Our guides are verified against actual insurance carrier rate sheets and state industrial commissions.
📌 Key Takeaways
- Workers' comp: Required for 5+ employees
- General liability: Not state-mandated, but required by most clients and landlords
- Commercial auto: Required for all registered business vehicles
- Professional liability: Required for licensed professions (varies by profession)
Workers' Compensation in Tennessee
Tennessee requires workers' compensation insurance for all businesses with 5 or more employees. This includes full-time, part-time, and seasonal workers.
⚠️ Penalties for Non-Compliance
- Fines of $1,000–$100,000+ depending on the state
- Potential criminal charges (misdemeanor or felony)
- Personal liability for all employee injury costs
- Stop-work orders may be issued
Insurance Types Available in Tennessee
General Liability Insurance
$400 – $2500/year average
Workers' Compensation Insurance
$500 – $5000/year average
Professional Liability Insurance (E&O)
$500 – $3000/year average
Commercial Auto Insurance
$1200 – $4000/year average
Business Owner's Policy (BOP)
$500 – $3500/year average
Cyber Liability Insurance
$500 – $5000/year average
Get Insurance Quotes in Tennessee
Compare rates from providers licensed in Tennessee.
Get My Free Quote →Industry-Specific Guides for Tennessee
Requirements vary by industry. Select your profession to see specificTennessee regulations, cost benchmarks, and required policy limits:
Contractors in TN
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Photographers in TN
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Restaurants in TN
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Trucking Companies in TN
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Real Estate Agents in TN
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Consultants in TN
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Landscapers in TN
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Cleaning Services in TN
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Electricians in TN
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Personal Trainers in TN
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Plumbers in TN
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IT Companies in TN
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Regulatory Context: Tennessee DOI
The Tennessee Department of Insurance is the primary regulatory body overseeing all commercial insurance carriers in the state. For consumer protection, the TN DOI maintains a list of admitted carriers and handles dispute resolutions for business owners.
- Agency: Tennessee Department of Insurance
- Primary Statute: Tennessee Insurance Code
- Workers' Comp Agency: Tennessee Industrial Commission / Department of Labor
Frequently Asked Questions
Yes, Tennessee requires workers' compensation insurance for businesses with 5 or more employees. Penalties for non-compliance can include fines, criminal charges, and being held personally liable for employee injuries.
Business insurance costs in Tennessee vary by industry and coverage type. General liability averages $400–$2,500/year, workers' comp averages $500–$5,000/year, and a BOP averages $500–$3,500/year. Costs are generally in line with national averages.
At minimum, Tennessee requires: workers' compensation insurance (for employers with 5+ employees). Additionally, many professions require general liability insurance as a licensing condition. Check with the Tennessee Department of Insurance for specific requirements.
The Tennessee Department of Insurance regulates insurance in the state. You can find them by searching "Tennessee Department of Insurance" — they provide licensing requirements, consumer assistance, and approved carrier lists.