NEXT offers the best professional liability insurance in Tennessee, with affordable rates and solid customer support. The Hartford takes second place, while Simply Business rounds out the top three.
Professional Liability Insurance in Tennessee
NEXT earns the highest score of 4.7 out of 5 in our analysis of the best professional liability insurance in Tennessee.
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Updated: October 28, 2025
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Best Professional Liability Insurance in Tennessee: Key Takeaways
NEXT is our top pick for professional liability insurance in Tennessee, followed by The Hartford and Simply Business.
Your industry risk, client contracts, potential claim costs and budget determine the best Tennessee professional liability insurance for you.
Assess your needs first, then compare quotes from multiple providers to find the best small business insurance for your professional liability requirements in Tennessee.
Find Insurance for Your Business
Select your industry and state to get a customized quote.
Industry
State
Best Professional Liability Insurance Companies in Tennessee
| NEXT Insurance | 4.70 | $71 |
| The Hartford | 4.62 | $69 |
| Simply Business | 4.49 | $75 |
| Nationwide | 4.43 | $80 |
| Coverdash | 4.43 | $76 |
| biBERK | 4.42 | $77 |
| Progressive Commercial | 4.37 | $73 |
| Hiscox | 4.35 | $75 |
| Chubb | 4.27 | $87 |
| Thimble | 4.20 | $75 |
How Did We Determine These Rates and Rankings?
These rates are estimates based on MoneyGeek's proprietary analysis of small businesses with two employees across 79 major industries and should not be considered quotes. Your actual rate will differ based on business-specific factors. Contact insurers directly for accurate pricing tailored to your business needs.
LEARN MORE ABOUT BUSINESS INSURANCE
Professional liability works best with other coverage types to create comprehensive financial protection for Tennessee businesses.
Best Tennessee Professional Liability Insurance Reviews
Most professionals need professional liability insurance, but not all providers offer the same value. We've broken down what differentiates these top providers and why they made our list for Tennessee businesses.
NEXT
Overall Best Provider
MoneyGeek Rating
4.7/ 5
4.6/5Affordability
4.7/5Customer Experience
4.8/5Coverage Points
Average Monthly Premium
$71These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies.Our Survey: Claims Process
3.9/5Our Survey: Recommend to Others
4.8/5
The Hartford
Runner-Up for Best Provider
MoneyGeek Rating
4.6/ 5
4.6/5Affordability
4.6/5Customer Experience
4.7/5Coverage Points
Average Monthly Premium
$69These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies.Our Survey: Claims Process
4.5/5Our Survey: Recommend to Others
4.5/5
Cheapest Professional Liability Insurance Companies in Tennessee
The Hartford offers the cheapest professional liability insurance in Tennessee at $69 monthly ($834 annually). NEXT provides another affordable option for business owners at $71 per month.
| The Hartford | $69 | $834 |
| NEXT Insurance | $71 | $848 |
| Progressive Commercial | $73 | $879 |
| Thimble | $75 | $895 |
| Simply Business | $75 | $896 |
| Hiscox | $75 | $899 |
| Coverdash | $76 | $914 |
| biBERK | $77 | $923 |
| Nationwide | $80 | $965 |
| Chubb | $87 | $1,038 |
How Did We Determine These Rates?
These rates are estimates based on MoneyGeek's proprietary analysis of small businesses with two employees across 79 major industries and should not be considered quotes. Your actual rate will differ based on business-specific factors. Contact insurers directly for accurate pricing tailored to your business needs.
Average Cost of Professional Liability Insurance in Tennessee
Professional liability insurance costs in Tennessee average $76 monthly ($909 annually), which is $2 less than the national average. Home-based businesses pay around $36 per month, while mortgage brokers average $164. Your location, claims history and coverage limits also impact rates.
| Accountants | $140 | $1,683 |
| Ad Agency | $94 | $1,128 |
| Auto Repair | $81 | $966 |
| Automotive | $73 | $877 |
| Bakery | $51 | $612 |
| Barber | $41 | $493 |
| Beauty Salon | $48 | $570 |
| Bounce House | $57 | $689 |
| Candle | $41 | $492 |
| Cannabis | $120 | $1,442 |
| Catering | $78 | $931 |
| Cleaning | $54 | $645 |
| Coffee Shop | $60 | $715 |
| Computer Programming | $102 | $1,226 |
| Computer Repair | $62 | $742 |
| Construction | $74 | $891 |
| Consulting | $103 | $1,239 |
| Contractor | $62 | $744 |
| Courier | $48 | $581 |
| DJ | $44 | $529 |
| Daycare | $105 | $1,266 |
| Dental | $81 | $975 |
| Dog Grooming | $55 | $654 |
| Drone | $104 | $1,243 |
| Ecommerce | $62 | $738 |
| Electrical | $62 | $745 |
| Engineering | $102 | $1,224 |
| Excavation | $65 | $776 |
| Florist | $38 | $450 |
| Food | $108 | $1,295 |
| Food Truck | $57 | $687 |
| Funeral Home | $79 | $950 |
| Gardening | $39 | $463 |
| HVAC | $80 | $956 |
| Handyman | $54 | $646 |
| Home-based business | $36 | $436 |
| Hospitality | $71 | $851 |
| Janitorial | $48 | $582 |
| Jewelry | $60 | $719 |
| Junk Removal | $65 | $780 |
| Lawn/Landscaping | $50 | $601 |
| Lawyers | $144 | $1,734 |
| Manufacturing | $57 | $684 |
| Marine | $85 | $1,024 |
| Massage | $103 | $1,232 |
| Mortgage Broker | $164 | $1,973 |
| Moving | $80 | $959 |
| Nonprofit | $50 | $598 |
| Painting | $62 | $745 |
| Party Rental | $53 | $637 |
| Personal Training | $69 | $830 |
| Pest Control | $93 | $1,111 |
| Pet | $45 | $536 |
| Pharmacy | $56 | $674 |
| Photography | $63 | $758 |
| Physical Therapy | $92 | $1,108 |
| Plumbing | $88 | $1,055 |
| Pressure Washing | $56 | $667 |
| Real Estate | $123 | $1,477 |
| Restaurant | $79 | $950 |
| Retail | $53 | $637 |
| Roofing | $94 | $1,123 |
| Security | $98 | $1,177 |
| Snack Bars | $45 | $544 |
| Software | $93 | $1,118 |
| Spa/Wellness | $108 | $1,298 |
| Speech Therapist | $95 | $1,136 |
| Startup | $70 | $837 |
| Tech/IT | $96 | $1,155 |
| Transportation | $94 | $1,123 |
| Travel | $95 | $1,141 |
| Tree Service | $73 | $876 |
| Trucking | $112 | $1,340 |
| Tutoring | $60 | $715 |
| Veterinary | $113 | $1,353 |
| Wedding Planning | $76 | $910 |
| Welding | $76 | $906 |
| Wholesale | $61 | $730 |
| Window Cleaning | $60 | $718 |
How Did We Determine These Rates?
These rates are estimates based on MoneyGeek's proprietary analysis of small businesses with two employees across 79 major industries and should not be considered quotes. Your actual rate will differ based on business-specific factors. Contact insurers directly for accurate pricing tailored to your business needs.
How Much Professional Liability Insurance Do I Need in Tennessee?
Professional liability insurance requirements in Tennessee depend on your specific profession. While the state doesn't mandate coverage for all industries, certain fields like health care and law often face stricter rules. Even without legal requirements, your coverage depends on your risk exposure and clients' expectations. Many higher-risk professions carry at least $1 million per occurrence and $3 million aggregate coverage.
Your coverage decision depends on three factors:
Your Industry Risk
Some industries in Tennessee carry greater liability exposure than others, affecting your coverage needs. Technology consultants and architects in Nashville's growing business district face higher risks, thus needing higher coverage limits. Professional liability insurance for accountants or real estate agents serving smaller Tennessee communities generally don't need as much coverage. Your industry's claim frequency and severity should guide your coverage amount selection.
Client Requirements
Many clients and contracts in Tennessee require proof of professional liability insurance at specific minimum limits before work begins. Corporations headquartered in Nashville and Memphis, along with Tennessee state and local government contracts, mandate $1 million or more coverage. Meeting these contractual requirements often determines your baseline coverage needs regardless of your personal risk assessment.
Potential Claim Costs
Your coverage should reflect the possible financial impact of a professional liability lawsuit in Tennessee's legal environment. Small consulting errors might result in $10,000 to $50,000 damages, while mistakes on major Nashville or Memphis development projects could lead to six-figure damages plus substantial legal defense costs. Consider the size of projects you handle and the potential effects of professional errors when selecting coverage limits.
How to Get the Best Professional Liability Insurance in Tennessee
Our step-by-step guide explains how to get business insurance in Tennessee that matches your professional liability needs and budget.
- 1Evaluate Your Risk Exposure
Different Tennessee businesses face varying liability risks that determine coverage needs. A health care provider requires higher limits than a freelance graphic designer. Review your industry standards, client contracts and potential claim scenarios to identify the right coverage amount.
- 2Find a Knowledgeable Local Agent
Look for agents who know Tennessee's business landscape and understand how business insurance costs vary by location and industry. They can recommend coverage that fits common industries across the state. Local expertise helps you avoid gaps in protection while meeting specific client demands.
- 3Request Multiple Detailed Quotes
Request quotes from at least three insurers, comparing affordable business insurance rates and policy terms like exclusions and deductibles. A $1 million policy from one company may offer different protections than another insurer's identical limit.
- 4Research Insurer Financial Strength
When researching small business insurance in Tennessee, look beyond price. Check AM Best ratings to confirm the insurer can pay claims when needed. Read professional reviews and ask colleagues about their experiences with specific insurance companies.
- 5Explore Bundling Opportunities
Most insurers offer discounts when you combine professional liability with other types of business insurance coverage, such as general liability or business owner's policies. Tennessee businesses often save 10% to 15% through bundling arrangements. This approach also simplifies policy management and renewal dates.
- 6Maintain Uninterrupted Coverage
Professional liability operates on a claims-made basis, covering only claims filed while your policy remains active. Any coverage gap leaves you exposed to lawsuits from past work. Purchase tail coverage or ensure prior acts protection when switching insurers to avoid dangerous lapses.
How to Prevent Professional Liability Claims in Tennessee
Many professional liability claims happen because of miscommunication and unclear client expectations, not actual mistakes. Even small disputes can lead to thousands in legal fees. Use these strategies to avoid problems and protect your business from expensive claims.
Document Everything
Keep written proof of all client interactions, including email confirmations, scope changes and client approvals. This documentation helps prevent disputes by providing a clear record of what was agreed upon. Having these records readily available protects your business when questions arise about project details or decisions.
Use Detailed Contracts With Clear Scope
Your contracts should define responsibilities, timelines and deliverables in specific terms. Outlining what is included and excluded from your services helps avoid conflicts over additional work requests. Clear scope definitions protect both you and your clients from misunderstandings about project boundaries.
Communicate Project Changes Immediately
Confirm all client-requested changes in writing before moving forward with any modifications. Document how these changes affect timelines, budgets and final deliverables. This practice ensures everyone understands the impact of adjustments and prevents disputes over unexpected costs or delays.
Set Realistic Expectations Upfront
Be transparent about timelines, potential challenges and expected results from the beginning of each project. Being honest about your capabilities and limitations helps avoid overpromising and reduces client disputes. Clear expectations create a foundation for successful professional relationships and satisfied clients.
Keep Detailed Project Records
Maintain thorough records of all work performed, decisions made and the reasoning behind your professional recommendations. This documentation demonstrates your diligence and expertise if your work is ever questioned. Detailed records serve as your best defense when explaining your professional judgment and processes.
Tennessee Professional Liability: Bottom Line
Selecting professional liability coverage in Tennessee requires understanding your business risks and client demands. NEXT leads our rankings, but your industry requirements, contract obligations and budget constraints matter most. Evaluate your coverage needs first, then partner with a local agent to compare policies that deliver solid financial protection for your business.
Tennessee Professional Liability Insurance: FAQ
Here are frequently asked questions about professional liability insurance in Tennessee.
What does professional liability insurance cost in Tennessee?
Professional liability insurance in Tennessee costs between $69 and $87 monthly, based on provider rates. Your actual premium depends on your industry's risk level, claims history, coverage limits, and business location, making costs unique for each company.
Which professional liability insurance company is best in Tennessee?
NEXT ranks as the best professional liability insurance company in Tennessee, scoring 4.70 out of 5 for its affordable rates and excellent customer service. The Hartford follows closely at 4.62, while Simply Business rounds out the top three with a solid 4.49 rating for small businesses.
How much professional liability coverage do I need in Tennessee?
Professional liability coverage amounts in Tennessee depend on your industry's risk level, client contract requirements, and potential lawsuit costs. Higher-risk professions like architects and consultants typically need larger coverage limits, while lower-risk businesses may require less protection to adequately cover potential claims.
Are professional liability and E&O insurance the same thing?
Yes, they're the same coverage. Professional liability and errors and omissions (E&O) insurance both protect you from claims about mistakes in your professional services. Some industries prefer one term over the other, but the coverage works identically regardless of what you call it.
How We Scored the Best Professional Liability Insurance Companies in Tennessee
A professional liability lawsuit can destroy a small business in Tennessee or force it to close permanently. We examined insurers statewide to identify which companies provide the most reliable financial protection for businesses from startups to established operations.
Our Scoring System
- Affordability (50%): Cost drives insurance decisions for small businesses more than any other factor. We gave affordability the highest weight because finding quality coverage within budget constraints is essential for local companies.
- Customer experience (30%): Professional liability claims create stress and urgency. We analyzed service quality through J.D. Power ratings and complaint records from the Tennessee Department of Insurance.
- Coverage options (15%): We reviewed policy flexibility and exclusions to ensure they match the diverse needs of professional services across the state.
- Financial strength (5%): AM Best financial ratings confirmed each recommended insurer maintains the stability to pay professional liability claims reliably.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like 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
- Alliance Health. "Provider Insurance Requirements." Accessed November 14, 2025.