Finding the best business insurance starts with having clear, reliable information. Below are answers to common questions about general liability insurance in Tennessee, based on MoneyGeek’s research:
Best General Liability Insurance in Tennessee
The Hartford leads Tennessee general liability insurance as both the top-rated and most affordable option at $80 per month.
Get matched to the best and cheapest general liability insurer for you below.
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Updated: February 18, 2026
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Commercial General Liability Insurance in Tennessee: Fast Answers
Which company offers the best general liability insurance in Tennessee?
The Hartford ranks as the best general liability insurance company in Tennessee with an overall score of 4.64 out of 5. It provides affordable coverage at $80 per month and excels in claims handling. ERGO NEXT takes second place with a 4.55 score, featuring excellent digital tools and customer service for $100 per month.
Who offers the cheapest general liability insurance in Tennessee?
The cheapest general liability insurance companies in Tennessee are:
- The Hartford: $80 per month
- Simply Business: $93 per month
- Nationwide: $95 per month
- Progressive: $98 per month
- ERGO NEXT: $100 per month
Do Tennessee businesses legally need general liability insurance?
Tennessee doesn't legally require most businesses to carry general liability insurance at the state level. However, certain licensed professionals like contractors and electricians may need specific coverage amounts. Local municipalities can set their own requirements, and most landlords and clients demand proof of insurance before signing contracts.
How much does general liability insurance cost in Tennessee?
General liability insurance costs between $16 and $897 per month for small Tennessee businesses with two employees. Drone businesses tend to get the lowest rates, while pressure washing companies see the highest premiums. Your actual cost depends on your industry, business location, coverage limits and company size.
Best General Liability Insurance Companies in Tennessee
The Hartford is our top choice for general liability insurance in Tennessee, offering reliable affordability and strong financial stability for small businesses. ERGO NEXT also performs well, providing great customer service and comprehensive coverage options. Nationwide rounds out our recommendations with steady stability ratings and competitive pricing across Tennessee.
| The Hartford | 4.64 | $80 |
| ERGO NEXT | 4.55 | $100 |
| Nationwide | 4.53 | $95 |
| Simply Business | 4.49 | $93 |
| Thimble | 4.40 | $105 |
| Coverdash | 4.37 | $101 |
| biBERK | 4.28 | $111 |
| Progressive Commercial | 4.27 | $98 |
| Chubb | 4.25 | $116 |
| Hiscox | 4.17 | $111 |
How Did We Determine These Rates?
These rates reflect MoneyGeek's analysis of small businesses with two employees across 79 major industries. Actual rates vary based on your business location, industry risk factors, claims history, coverage limits and individual insurer underwriting criteria. Contact insurers directly for personalized quotes.
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LEARN MORE ABOUT THE BEST BUSINESS INSURANCE IN TENNESSEE
General liability insurance covers customer injuries and property damage for Tennessee businesses, but it won’t protect against every risk. Explore these additional coverage options to build comprehensive financial protection:
Best Tennessee General Liability Insurance Reviews
Finding the best general liability insurance in Tennessee requires looking beyond affordable rates to coverage quality and customer service. Our research identifies the top business insurers based on comprehensive analysis.
The Hartford
Best Tennessee General Liability Insurer
MoneyGeek Rating
4.6/ 5
4.6/5Affordability
4.6/5Customer Experience
4.7/5Coverage Points
Average Monthly General Liability Premium
$80These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Our Survey: Claims Process
4.5/5Our Survey: Likely to Be Recommended to Others
4.5/5
ERGO NEXT
Best Tennessee Commercial General Liability: Runner-Up
MoneyGeek Rating
4.5/ 5
4.2/5Affordability
4.7/5Customer Experience
4.8/5Coverage Points
Average Monthly General Liability Premium
$100These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Our Survey: Claims Process
3.9/5Our Survey: Likely to Be Recommended to Others
4.8/5
Cheapest General Liability Insurance Companies in Tennessee
The Hartford's $80 monthly rate is the lowest among Tennessee general liability providers, running $20 below the state average. Simply Business and Nationwide also price competitively for Tennessee businesses.
| The Hartford | $80 | $957 |
| Simply Business | $93 | $1,120 |
| Nationwide | $95 | $1,135 |
| Progressive Commercial | $98 | $1,171 |
| ERGO NEXT | $101 | $1,206 |
| Coverdash | $101 | $1,210 |
| Thimble | $105 | $1,255 |
| Hiscox | $111 | $1,335 |
| biBERK | $111 | $1,336 |
| Chubb | $116 | $1,391 |
How Did We Determine These Rates?
These rates reflect small businesses with two employees across 79 major industries and focus solely on general liability policies. Your premium depends on where your business is located, what industry you're in, how much coverage you choose and other factors insurers consider. Available options differ by state.
Cheapest General Liability Insurance in Tennessee by Industry
MoneyGeek’s research highlights the most affordable general liability insurers by industry in Tennessee.
- The Hartford: Provides the lowest rates across 21 industries, including construction, cleaning, transportation and home-based businesses.
- Simply Business and Thimble: Each offer competitive pricing in 11 industries. Simply Business offers strong rates for professional services such as consulting, accounting and software firms. Thimble remains a solid option for personal service businesses like barbers, HVAC professionals and wedding planners.
- biBerk: Offers the most affordable coverage in nine industries and shows strong pricing for contractors, engineers and veterinary practices.
- Nationwide: Posts leading rates in eight industries, with competitive premiums for electrical, manufacturing, moving and real estate businesses.
Data filtered by:
Accountants
| Accountants | Simply Business | $14 | $169 |
Average Cost of General Liability Insurance in Tennessee
Most small businesses in Tennessee pay about $100 monthly for general liability insurance. The average cost of general liability insurance coverage depends on your industry, business size, location and coverage limits.
Manufacturing companies often pay higher premiums due to increased risk exposure, while accounting firms usually pay less because of lower liability concerns. Sole proprietors generally pay less than businesses with employees since they have fewer risk factors.
Average Cost of General Liability Insurance in Tennessee by Industry
Monthly costs for general liability coverage in Tennessee vary widely by industry. Drone businesses pay the least at $16 per month, while pressure washing companies reach the highest rates at $897 monthly. Review this table to find typical costs for your specific business type.
Data filtered by:
Select
| Accountants | $22 | $259 |
| Ad Agency | $35 | $416 |
| Automotive | $52 | $627 |
| Auto Repair | $149 | $1,787 |
| Bakery | $89 | $1,062 |
| Barber | $43 | $521 |
| Beauty Salon | $65 | $786 |
| Bounce House | $69 | $826 |
| Candle | $54 | $646 |
| Cannabis | $66 | $788 |
| Catering | $86 | $1,031 |
| Cleaning | $130 | $1,558 |
| Coffee Shop | $88 | $1,055 |
| Computer Programming | $28 | $342 |
| Computer Repair | $47 | $560 |
| Construction | $172 | $2,062 |
| Consulting | $22 | $258 |
| Contractor | $250 | $2,997 |
| Courier | $192 | $2,298 |
| Daycare | $32 | $387 |
| Dental | $21 | $253 |
| DJ | $25 | $298 |
| Dog Grooming | $62 | $746 |
| Drone | $16 | $196 |
| Ecommerce | $72 | $861 |
| Electrical | $110 | $1,322 |
| Engineering | $39 | $469 |
| Excavation | $456 | $5,476 |
| Florist | $42 | $504 |
| Food | $106 | $1,266 |
| Food Truck | $139 | $1,667 |
| Funeral Home | $59 | $710 |
| Gardening | $110 | $1,322 |
| Handyman | $239 | $2,871 |
| Home-based | $23 | $279 |
| Home-based | $45 | $538 |
| Hospitality | $64 | $767 |
| HVAC | $240 | $2,885 |
| Janitorial | $134 | $1,613 |
| Jewelry | $39 | $474 |
| Junk Removal | $159 | $1,911 |
| Lawn/Landscaping | $118 | $1,414 |
| Lawyers | $22 | $268 |
| Manufacturing | $63 | $752 |
| Marine | $27 | $330 |
| Massage | $94 | $1,127 |
| Mortgage Broker | $22 | $269 |
| Moving | $122 | $1,459 |
| Nonprofit | $35 | $422 |
| Painting | $141 | $1,691 |
| Party Rental | $78 | $935 |
| Personal Training | $23 | $281 |
| Pest Control | $32 | $379 |
| Pet | $55 | $659 |
| Pharmacy | $61 | $727 |
| Photography | $24 | $284 |
| Physical Therapy | $108 | $1,297 |
| Plumbing | $354 | $4,252 |
| Pressure Washing | $897 | $10,766 |
| Real Estate | $52 | $625 |
| Restaurant | $142 | $1,705 |
| Retail | $64 | $769 |
| Roofing | $380 | $4,563 |
| Security | $136 | $1,636 |
| Snack Bars | $115 | $1,381 |
| Software | $26 | $310 |
| Spa/Wellness | $105 | $1,255 |
| Speech Therapist | $31 | $367 |
| Startup | $28 | $337 |
| Tech/IT | $26 | $311 |
| Transportation | $37 | $442 |
| Travel | $20 | $245 |
| Tree Service | $127 | $1,526 |
| Trucking | $101 | $1,207 |
| Tutoring | $30 | $356 |
| Veterinary | $44 | $527 |
| Wedding Planning | $27 | $326 |
| Welding | $162 | $1,939 |
| Wholesale | $44 | $526 |
| Window Cleaning | $156 | $1,873 |
How Did We Determine These Rates?
These rates reflect small businesses with two employees across 79 major industries and focus solely on general liability policies. Your premium depends on where your business is located, what industry you're in, how much coverage you choose and other factors insurers consider. Available options differ by state.
What Factors Affect Tennessee General Liability Insurance Costs?
Many important factors influence what Tennessee businesses pay for general liability insurance coverage.
Tennessee Legal and Regulatory Environment
Tennessee runs on a modified comparative negligence system with a 50% bar rule. Plaintiffs can only recover damages if their fault is below 50%, which cuts insurer exposure in shared-fault cases. Personal injury trial rates dropped to 2.44% in FY 2023-24 from 3.8% in FY 2014-15, lowering litigation costs for insurers.
The average personal injury jury verdict is $273,821, but the median sits at $17,536, with most judgments under $100,000. Together, these conditions produce more predictable claim outcomes and keep Tennessee premiums lower than states with pure comparative negligence laws or heavier litigation.
Tennessee Geographic and Environmental Risks
Tennessee recorded 116 billion-dollar disaster events from 1980 to 2024, with the annual average jumping from 2.6 events to 7.8 events over the past five years. The state hit a record 11 billion-dollar disasters in 2023 and has one of the highest nocturnal tornado rates in the country.
Storms leave behind damaged walkways, fallen debris and power outages that lead to more slip-and-fall claims and customer injuries. With disasters happening more often, insurers raise rates to cover growing weather-related premises liability claims, and Tennessee premiums reflect that trend.
Tennessee Geographic and Urban Factors
Urban Tennessee businesses pay more for general liability than rural ones. Nashville, Memphis, Knoxville and Chattanooga see higher customer traffic, more lawsuits and larger jury awards, all of which push premiums up. Slip-and-fall accidents and premises liability claims are more common in cities, and settlement costs follow.
Industrial and manufacturing businesses in Jackson, Memphis and Chattanooga can expect commercial premiums to climb 8% to 15%. Insurers price by ZIP code, so your location within Tennessee directly affects your rate.
Tennessee Industry and Economic Composition
Manufacturing (2,600+ establishments), healthcare (2,300+ establishments) and distribution/logistics (15,200 establishments) make up the backbone of Tennessee's economy, and all three carry above-average liability exposure. Equipment injuries and on-site accidents are common across manufacturing, construction and logistics operations.
Tourism adds another layer of risk through hotels, restaurants and entertainment venues that deal with customers constantly. Heavy claims across these industries push up insurers' loss ratios in Tennessee, which raises base rates even for low-risk businesses like small retail and service companies.
How Much General Liability Insurance Do I Need in Tennessee?
Tennessee's general liability insurance requirements for businesses depend on your industry and license type. While most small businesses aren't legally required to carry coverage, the state mandates specific minimums for licensed contractors. Understanding these requirements helps you stay compliant and protects your business from costly lawsuits. Below are Tennessee's mandatory coverage requirements by profession.
- Projects up to $500,000 need $100,000 minimum coverage.
- Mid-sized projects between $500,001 and $1,500,000 require $500,000 in coverage.
- Major projects exceeding $1,500,001 demand $1 million minimum.You'll need to submit a certificate of insurance listing the Board for Licensing Contractors as the certificate holder regardless of project size.
Tennessee public liability insurance requirements for licensed contractors
Tennessee contractors must carry general liability insurance to obtain and maintain their license through the Board for Licensing Contractors. Coverage minimums are tied to your project's monetary limit:
Tennessee public liability insurance requirements for electricians
Licensed electricians in Tennessee need general liability insurance matching their project limits, with minimums starting at $100,000. Both full contractor licenses and Limited License Electrician (LLE) classifications require proof of coverage.
Tennessee public liability insurance requirements for plumbers
Tennessee requires plumbers to carry general liability insurance based on their monetary limit, following the same tiered structure as general contractors. Limited License Plumbers (LLP) working on projects under $25,000 need $100,000 minimum coverage, while larger projects require higher limits matching the project-based tiers.
Tennessee public liability insurance requirements for HVAC contractors
Heating, ventilation and air conditioning contractors must maintain general liability insurance as part of their mechanical contractor license. Coverage amounts follow the same project-based minimums as general contractors, ranging from $100,000 to $1 million depending on the monetary limit.
Tennessee public liability insurance requirements for home improvement contractors
Tennessee requires home improvement contractors to carry a minimum of $100,000 in general liability insurance for residential remodeling projects valued between $3,000 and $24,999. This flat minimum protects homeowners and ensures contractors can cover potential property damage or injuries during residential work.
State insurance requirements change often. Check current requirements with the Tennessee Department of Commerce and Insurance or talk with a licensed insurance agent for the latest information.
How to Choose the Best General Liability Insurance in Tennessee
Getting business insurance in Tennessee starts with understanding your coverage needs and budget. General liability insurance covers accidents and property damage claims, but most small businesses need additional policies like commercial property and professional liability for complete financial protection.
- 1Determine Coverage Needs
Tennessee doesn't mandate general liability insurance for most businesses, but many commercial landlords require $1 million per occurrence with $2 million aggregate limits in lease agreements.
Licensed contractors must carry coverage that matches their project size, ranging from $100,000 to $1 million. Review your industry risks, client contracts and lease requirements to determine the right business insurance coverage limits for your operations.
- 2Prepare Business Information
Tennessee insurers calculate premiums based on your business classification, annual revenue, employee count and physical location within the state. Nashville and Memphis businesses often pay higher rates due to increased claim frequency in urban areas. Gather your EIN, business registration with the Tennessee Secretary of State and recent tax returns before requesting quotes to ensure accurate pricing.
- 3Compare Multiple Quotes
Request quotes from at least three insurers licensed in Tennessee, as business insurance costs vary significantly by industry: drone businesses average $16 monthly while pressure washing companies pay around $897 monthly per MoneyGeek analysis. Compare whether defense costs count against your policy limit or come as additional coverage beyond your liability cap. Most Tennessee small businesses pay approximately $100 per month for general liability insurance, though your actual rate depends on your industry risk profile and coverage limits.
- 4Look Beyond Price
Cheap business insurance often includes restrictive exclusions that leave coverage gaps during claims. Review policy exclusions carefully since Tennessee businesses commonly need separate coverage for professional errors, pollution liability and employee injuries through workers' compensation. Defense cost provisions matter significantly since legal fees in Tennessee civil courts often exceed settlement amounts.
- 5Verify Insurer Credentials
Check insurer legitimacy through the Tennessee Department of Commerce and Insurance’s online database. Review AM Best financial strength ratings, since Tennessee regulators recommend carriers with A- or higher to help confirm claim payment capability. You can also look at complaint ratios filed with state regulators to identify companies with weaker claims-handling records in Tennessee.
- 6Ask About Discounts
Tennessee insurers offer discounts for bundling general liability with commercial auto or property coverage, reducing premiums by 10% to 25%. Businesses with claims-free histories for three or more years qualify for preferred rates in Tennessee's competitive insurance market. Installing safety systems or completing employee training programs through Tennessee Department of Labor resources can lower premiums by documenting reduced risk.
- 7Obtain Certificate of Insurance
Tennessee commercial landlords and project owners require certificates of insurance before signing leases or contracts. Most insurers issue digital certificates instantly through online portals, though some carriers take 24 to 48 hours for manual processing. Keep your agent's contact information accessible for urgent certificate requests (Tennessee contractors often need same day certificates) when bidding on projects.
- 8Review Coverage Annually
Reassess your coverage each renewal period, especially after hiring employees that push you past Tennessee's five-employee threshold requiring workers' compensation insurance. Compare quotes 60 to 90 days before renewal since Tennessee's insurance market fluctuates and carriers adjust rates annually. Updating coverage prevents compliance gaps with the Tennessee Board for Licensing Contractors if you're in construction trades.
Top General Liability Insurance in Tennessee: Bottom Line
Finding the right general liability insurance in Tennessee starts with understanding your specific business needs and researching providers thoroughly. The Hartford, ERGO NEXT and Nationwide are leading options, but your best choice depends on your industry, company size and budget. Compare quotes from multiple insurers and verify their credentials before making your final decision.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
sources
- Bureau of Economic Analysis. "Real Gross Domestic Product by State and Industry [Interactive Data]." Accessed February 27, 2026.
- National Oceanic and Atmospheric Administration (NOAA) National Centers for Environmental Information. "Billion-Dollar Weather and Climate Disasters: Tennessee Summary." Accessed February 27, 2026.
- National Weather Service Nashville. "Tornadoes and Severe Storms." Accessed February 27, 2026.
- Tennessee Administrative Office of the Courts. "Annual Statistical Report of the Tennessee Judiciary 2023-2024." Accessed February 27, 2026.
- Tennessee Bar Association. "Examining 2023-2024 Tennessee Tort Case Stats." Accessed February 27, 2026.
- Tennessee Bar Legal Education. "TORTS: Comparative Fault." Accessed February 27, 2026.
- WPLN News. "Tennessee Has Seen 100+ 'Billion-Dollar Disasters' Since 1980." Accessed February 27, 2026.