NEXT leads Tennessee's best small business insurance with top-ranked customer service, strong coverage options and competitive rates at $98 monthly. The Hartford and Simply Business also offer solid protection for Volunteer State entrepreneurs.
Best Small Business Insurance in Tennessee
Tennessee's top business insurers are NEXT, The Hartford and Simply Business, with coverage starting at $70 annually for small businesses.
Get matched to the best Tennessee commercial insurer for you below.
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Updated: January 6, 2026
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Business Insurance in Tennessee: Key Takeaways
Tennessee's best small business insurance comes from NEXT, ranking first in customer service and second in coverage.
The Hartford offers the cheapest small business insurance in Tennessee at $82 monthly ($980 annually).
Choose the right small business insurance coverage by assessing risks, comparing quotes and claiming discounts.
Best Small Business Insurance Companies in Tennessee
| NEXT Insurance | 4.62 | $98 | 1 | 2 |
| The Hartford | 4.60 | $82 | 2 | 3 |
| Simply Business | 4.48 | $94 | 5 | 1 |
| Nationwide | 4.47 | $99 | 2 | 4 |
| Coverdash | 4.40 | $99 | 6 | 2 |
| biBERK | 4.38 | $102 | 2 | 5 |
| Progressive Commercial | 4.32 | $97 | 7 | 5 |
| Thimble | 4.30 | $91 | 8 | 5 |
| Hiscox | 4.27 | $105 | 4 | 6 |
| Chubb | 4.26 | $115 | 3 | 4 |
Note: These rates reflect MoneyGeek's analysis of small businesses with two employees across 79 major industries. Your actual rates vary based on your industry risk factors, claims history, coverage limits and individual insurer underwriting criteria. Contact insurers directly for personalized quotes.
FIND THE BEST BUSINESS INSURANCE IN TENNESSEE BY COVERAGE TYPE
The best or cheapest business insurer in Tennessee for your business depends changes, depending on what coverage type you need. Check out our resources to find the provider that matches your needs:
NEXT
Best Tennessee Business Insurance
MoneyGeek Rating
4.6/ 5
4.4/5Affordability
4.7/5Customer Experience
4.8/5Coverage Options
Average Monthly Cost of General Liability Insurance
$100This rate is for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Monthly Cost of Workers' Comp Insurance
$67This rate is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Digital Experience
4.8/5 (1st)Our Survey: Likely to Be Recommended to Others
4.8/5 (1st)
The Hartford
Cheapest Tennessee Business Insurance
MoneyGeek Rating
4.6/ 5
4.5/5Affordability
4.6/5Customer Experience
4.7/5Coverage Options
Average Monthly Cost of General Liability Insurance
$80This rate is for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Monthly Cost of Workers' Comp Insurance
$68This rate is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Claims Process
4.5/5 (1st)Our Survey: Agent Service
4.7/5 (1st)
Simply Business
Best Commercial Coverage Options in Tennessee
MoneyGeek Rating
4.5/ 5
4.4/5Affordability
4.2/5Customer Experience
4.9/5Coverage Options
Average Monthly Cost of General Liability Insurance
$93This rate is for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Monthly Cost of Workers' Comp Insurance
$69This rate is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Research: Digital Experience
4.5/5Our Survey: Service Quality
4.0/5
Get Matched to the Best Small Business Insurance Providers in Tennessee
Select your industry and state to get a customized quote for your Tennessee business.
Industry
State
How to Get the Best Cheap Small Business Insurance in Tennessee
Tennessee small business owners face tornado-prone counties across Middle Tennessee, a fifth-employee trigger for workers' comp that catches many off guard, and contractor rules requiring insurance proof before bidding jobs over $25,000. Getting business insurance that covers these risks means more than finding the lowest price.
- 1
Separate what Tennessee law requires from what protects your business
Tennessee requires workers' compensation when you hire your fifth employee (construction needs it from employee one) and commercial auto with $25,000/$50,000/$25,000 minimums for business vehicles. General liability insurance is mandatory only for licensed contractors, but clients and landlords often demand it, and Tennessee tornadoes prove you need commercial property coverage even when law doesn't require it.
- 2
Cover risks your Tennessee business actually faces
Construction and trade businesses (Tennessee has 75,877 construction firms) need tools and equipment insurance when items get stolen from job sites. Restaurants and event venues need coverage beyond the basics. With Tennessee averaging 7.8 major disaster events yearly since 2020, business interruption coverage pays lost income when tornadoes shut down your Davidson, Sumner, or Maury County operation for days.
- 3
Get quotes from top carriers and Tennessee programs
Compare rates from NEXT, The Hartford, and Simply Business (our highest-ranked small business insurers). Most Tennessee businesses find coverage easily since about 350 carriers operate here, but if standard insurers turn you down, the NCCI runs Tennessee's assigned risk program for workers' comp at higher rates. Shop standard carriers first before using assigned risk.
- 4
Look beyond the cheapest monthly premium
Low premiums backfire when May storms hit and your cheap policy excludes coverage Tennessee businesses need, or your insurer takes weeks answering questions after tornado damage. NEXT scores highest for customer service, while The Hartford offers stronger financial ratings. Ask how fast the company responds after Tennessee weather events and check its AM Best rating of A- or better.
- 5
Cut costs through bundling and payment timing
Combine general liability with commercial property in a business owner's policy to cut premiums 20% to 30%. Pay annually instead of monthly to avoid $200 to $400 in fees. Ask about Tennessee's Drug-Free Workplace Program for workers' comp discounts. These strategies lower the cost of your coverage without sacrificing protection.
- 6
Review coverage when your business changes
Your fifth employee triggers workers' comp in Tennessee (that's stricter than some nearby states). Opening a second location in Knoxville when you started in Nashville means different rates by region. Bidding construction contracts over $25,000 requires a contractor license with general liability proof. Update your policies annually and whenever you hire, add vehicles, or expand locations.
Best Business Liability Insurance Tennessee: Bottom Line
NEXT and The Hartford lead Tennessee small business insurance. NEXT excels in customer service while The Hartford offers the lowest rates at $82 monthly. Compare quotes from both providers, assess your business risks and claim discounts to find coverage matching your budget and needs.
Business Insurance Tennessee: FAQ
Small business owners in Tennessee often have questions about choosing the right business insurance. We answer the most common concerns below:
What insurance do I need to run my small business in Tennessee?
Tennessee requires workers' compensation when you hire your fifth employee (construction needs it from employee one) and commercial auto for business vehicles. General liability is mandatory only for licensed contractors, but clients and landlords often demand it before contracts or leases.
What's required in Tennessee vs what my landlord or clients will ask for?
Tennessee law requires workers' comp at five employees and commercial auto for vehicles. Landlords want general liability naming them as additional insured. Clients often demand cyber liability for data protection and professional liability for errors before awarding contracts.
About how much does small business insurance cost per month in Tennessee, and what makes it go up or down?
Small business insurance costs in Tennessee depend on your industry, but these are the monthly and annual averages by coverage type:
- General liability insurance: $101 monthly or $1,212 annually
- Workers' compensation insurance: $72 monthly or $861 annually
- Professional liability (E&O) insurance: $76 monthly or $909 annually
- Business owner's policy (BOP): $144 monthly or $1,724 annually
Your industry, claims history, coverage limits and employee count affect rates.
How fast can I get a COI (proof of insurance), and what do you need from me?
NEXT and Simply Business issue instant certificates once coverage starts, while The Hartford processes them within 24 hours. You'll need the certificate holder's name, address and contract requirements like additional insured status or coverage minimums.
Do I need workers' comp in Tennessee if I have one employee or use 1099 help?
Construction and mining businesses need workers' comp from employee one. Other Tennessee businesses need it at five employees. Independent contractors (1099s) don't count toward your total, but misclassifying actual employees as contractors triggers penalties through Tennessee's Employee Misclassification Enforcement Fund.
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
- NOAA National Centers for Environmental Information. "Billion-Dollar Weather and Climate Disasters: Tennessee." Accessed January 12, 2026.
- Tennessee Department of Commerce and Insurance. "Contractor Insurance Information." Accessed January 12, 2026.
- Tennessee Department of Labor and Workforce Development. "Who Must Carry Insurance." Accessed January 12, 2026.