NEXT tops our analysis of Tennessee business insurance providers because of its strong customer service and comprehensive coverage. The Hartford and Simply Business are also reliable options for small business owners across the state.
Business Insurance in Tennessee
NEXT tops our Tennessee business insurance rankings with a MoneyGeek score of 4.62 out of 5.
Find affordable coverage that protects your small business in Tennessee below.
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Updated: August 26, 2025
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Key Takeaways
Small business owners can find the best business insurance in Tennessee through NEXT, The Hartford and Simply Business
The best business insurance in Tennessee depends on your industry risks, employee count and preferred coverage limits
To find the best coverage, assess your risks, compare multiple quotes, research provider service quality and maximize available discounts
Best Business Insurance Companies in Tennessee
| NEXT | 4.62 | 4 | 1 | 2 |
| The Hartford | 4.60 | 2 | 2 | 3 |
| Simply Business | 4.48 | 4 | 5 | 1 |
| Nationwide | 4.47 | 6 | 2 | 4 |
| Coverdash | 4.40 | 5 | 6 | 2 |
| biBerk | 4.38 | 7 | 2 | 5 |
| Progressive Commercial | 4.32 | 3 | 7 | 5 |
| Thimble | 4.30 | 1 | 8 | 5 |
| Hiscox | 4.27 | 6 | 4 | 6 |
| Chubb | 4.26 | 8 | 3 | 4 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Best by Coverage Type
NEXT offers the best professional liability insurance and business owner's policies (BOP) in Tennessee, along with top workers' compensation coverage. The Hartford stands out for general liability coverage.
| Business Owners Policy | NEXT | 4.63 |
| General Liability | The Hartford | 4.64 |
| Professional Liability (E&O) | NEXT | 4.70 |
| Workers Compensation | NEXT | 4.60 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Best Tennessee Small Business Insurance Reviews
Our research identified the top three business insurance providers in Tennessee based on coverage, cost and customer service. Each company offers unique advantages that could make it the right choice for your business.
NEXT
Best Customer Experience
MoneyGeek Rating
4.6/ of 5
4.4/5Affordability
4.7/5Customer Experience
4.8/5Coverage Options
Average Monthly Cost of General Liability Insurance
$101This 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: Claims Process
3.9/5Ranked #4 nationallyOur Survey: Likely to Be Recommended to Others
4.8/5Ranked #1 nationally
The Hartford
Best for Affordability
MoneyGeek Rating
4.6/ of 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
4.5/5Our Survey: Likely to Be Recommended to Others
4.5/5
Simply Business
Best for Coverage Availability
MoneyGeek Rating
4.5/ of 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 Survey: Claims Process
3.7/5Our Survey: Likely to Be Recommended to Others
4.2/5
Cheapest Business Insurance Companies in Tennessee
The Hartford provides the most affordable business insurance in Tennessee at $82 monthly ($980 annually). Small business owners can also find competitive rates from Thimble and Simply Business, with monthly premiums of $91 and $94, respectively. Our research shows these providers lead the market for budget-friendly coverage options across the state.
| The Hartford | $82 | $980 |
| Thimble | $91 | $1,095 |
| Simply Business | $94 | $1,133 |
| Progressive Commercial | $97 | $1,161 |
| NEXT | $98 | $1,173 |
| Nationwide | $99 | $1,182 |
| Coverdash | $99 | $1,182 |
| biBerk | $102 | $1,221 |
| Hiscox | $105 | $1,255 |
| Chubb | $115 | $1,382 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest General Liability Insurance Companies in Tennessee
For Tennessee business owners, The Hartford offers the cheapest general liability coverage in the state. We found its average monthly rate of $80 beats Simply Business, which ranks second at $93 monthly. You can compare each provider's general liability insurance rates in the table below.
| The Hartford | $80 | $957 |
| Simply Business | $93 | $1,120 |
| Nationwide | $95 | $1,135 |
| Progressive Commercial | $98 | $1,171 |
| 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 are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest Professional Liability Insurance Companies in Tennessee
The Hartford offers the most affordable professional liability insurance (E&O) at $69 monthly ($834 annually). NEXT provides another budget-friendly option for Tennessee businesses.
| The Hartford | $69 | $834 |
| NEXT | $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 for small businesses with two employees across 79 major industries or business types and focus solely on professional liability/errors and omissions policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest Workers’ Comp Insurance Companies in Tennessee
NEXT offers Tennessee's cheapest workers' comp rates at $67 monthly ($808 annually). The Hartford and Thimble also provide competitive rates, making these solid choices for affordable business coverage in the state.
| NEXT | $67 | $808 |
| The Hartford | $68 | $813 |
| Thimble | $68 | $822 |
| Simply Business | $69 | $833 |
| Progressive Commercial | $69 | $833 |
| Hiscox | $70 | $838 |
| Coverdash | $71 | $851 |
| biBerk | $73 | $875 |
| Nationwide | $79 | $945 |
| Chubb | $83 | $991 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest BOP Insurance Companies in Tennessee
The Hartford offers the cheapest BOP rates in Tennessee at $110 per month ($1,316 annually). Business owners can also find affordable BOP insurance with Thimble, Simply Business and Nationwide.
| The Hartford | $110 | $1,316 |
| Thimble | $117 | $1,409 |
| Simply Business | $140 | $1,682 |
| Nationwide | $140 | $1,684 |
| biBerk | $146 | $1,748 |
| Coverdash | $146 | $1,755 |
| Progressive Commercial | $147 | $1,762 |
| NEXT | $152 | $1,828 |
| Hiscox | $162 | $1,949 |
| Chubb | $176 | $2,109 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP policies. Survey results reflect limited sample data and may not represent all available rates in your area.
How Much Does Business Insurance Cost in Tennessee?
Business insurance in Tennessee ranges from $72 to $144 monthly, with workers' compensation being the most affordable and business owner's policies the most expensive. Rates vary based on the coverage type your business needs.
| BOP | $144 |
| General Liability | $101 |
| Professional Liability (E&O) | $76 |
| Workers Comp | $72 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Cost of Business Insurance by Industry and Coverage
Business insurance costs in Tennessee vary significantly by industry and coverage type. Speech therapists pay as little as $6 monthly for workers' compensation, while pressure washing businesses need about $1,310 monthly for a business owner's policy.
Data filtered by:Results filtered by:
Select
Coverage Type:Business Owners Policy
Select
Industry:Accountants
| Accountants | Business Owners Policy | $31 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
What Factors Influence My Costs?
Your Tennessee business insurance rates can be affected by several factors. Here's what influences your premium costs and why they might be higher than expected:
Industry risk level
Your line of work drives your insurance costs more than any other factor. High-risk industries like construction pay much more because accidents happen more often on job sites. A construction company might pay $300 monthly for coverage, while a consulting business pays just $50 for similar protection.
Geographic location and weather risks
Your location in Tennessee affects your rates based on local weather patterns and natural disaster risks. According to NOAA data, Tennessee ranks 8th nationwide for natural disasters, with severe storms and tornadoes causing billions in damage. Insurance companies price policies higher in areas with frequent storms or flooding.
Business size
Your employee count and revenue directly impact your rates. A roofing company with 20 workers pays more for workers' comp than a five-person crew because there's more risk exposure. Similarly, a retail store with $2 million in annual sales needs more liability coverage than a small boutique making $200,000.
Claims history
Previous insurance claims raise your rates for years afterward. Filing multiple claims tells insurers you're a higher risk, leading to premium increases across all your coverage types. Businesses with clean records often qualify for better rates and special discounts.
Coverage types and limits
Your choices about coverage affect your costs. Adding optional protections like cyber liability insurance increases your premium, while higher coverage limits mean bigger payments. Many Tennessee businesses save money with business owner's policies that bundle property and liability coverage.
Years in business
Insurance companies charge more for new businesses because they lack a track record. After three to five years of operation without claims, your rates often decrease as insurers gain confidence in your risk management practices.
Professional certifications
Safety certifications and professional licenses can lower your insurance costs. Many insurers reduce rates for businesses with OSHA safety training or industry-specific credentials because these show you're committed to reducing workplace accidents.
Tennessee Business Insurance Buying Guide
Running a business takes focus, and sorting out insurance shouldn't add to your stress. Getting business insurance is straightforward in Tennessee, and we'll guide you through each step to help you make informed choices.
What Coverage Is Required?
We've thoroughly researched Tennessee's business insurance requirements to save you time. Check the section below for a complete breakdown of what your business needs.
Workers' comp
Tennessee requires workers' compensation insurance for most businesses, with some exemptions for small operations. You must carry workers' comp if you have five or more employees regularly employed at the same time. This higher threshold makes Tennessee more business-friendly than states requiring coverage with just one employee. Corporate officers can opt out of coverage, and sole proprietors and business partners are exempt unless they choose coverage. However, construction businesses and those with government contracts may need coverage regardless of employee count.
Commercial auto insurance
Small businesses that own vehicles or require employees to drive for work need commercial auto insurance. Tennessee requires all vehicles to carry $25,000 per person and $50,000 per accident for injuries, plus $15,000 for property damage. These are moderate minimums, though businesses should consider higher limits for better financial protection.
Unemployment insurance
Tennessee requires unemployment insurance for businesses that pay wages of $1,500 or more in any quarter or employ one or more workers for 20 weeks during a calendar year. You must register with the Tennessee Department of Labor and Workforce Development and pay quarterly contributions based on your payroll and experience rating.
Professional liability insurance
If you hold a professional license in Tennessee for medical, legal, architectural or engineering work, you'll typically need professional liability insurance. Healthcare providers must carry malpractice coverage, while other professionals should check with their licensing boards for specific requirements. The coverage amounts vary by profession and practice type.
Contractor bonds and insurance
If you hold a contractor license in Tennessee, you'll need to carry liability insurance and may need to post a surety bond depending on your work type. General contractors typically need at least $100,000 in liability coverage, while specialty contractors have varying requirements. Home improvement contractors may need additional bonding to protect customers if you don't complete work as promised or follow licensing rules.
What Coverage Do We Recommend?
Tennessee keeps business insurance requirements minimal, leaving you to make smart coverage decisions for your company. Here's our analysis of the best insurance coverage for the state's leading industries:
Manufacturing | General liability, product liability, workers' compensation, commercial property, business interruption, automotive manufacturing coverage, tornado coverage, flood coverage, supply chain interruption | Tennessee manufacturers in automotive, chemicals, and machinery face tornado damage, flooding risks, and supply chain disruptions. Nissan, GM, and Volkswagen plants require specialized coverage for automotive supply chains and just-in-time manufacturing processes. |
Restaurant | General liability, product liability, commercial property, equipment breakdown, business interruption, tornado coverage, music venue dining, barbecue restaurant coverage, entertainment liability, liquor liability | Tennessee restaurants face tornado damage, flooding, and specialized liability from music venue dining and barbecue operations. Nashville establishments require elevated coverage for entertainment industry clientele and live music venue dining with crowd control liability. |
Construction/Contractor | General liability, workers' compensation, commercial auto, builder's risk, professional liability, tornado coverage, flood coverage, music venue construction, automotive facility construction | Tennessee construction faces tornado damage, flooding from multiple river systems, and specialized music venue construction requirements. Nashville entertainment venue construction requires specialized acoustics, crowd safety, and fire prevention coverage. |
Trucking | Commercial auto, cargo coverage, general liability, workers' compensation, tornado coverage, flood coverage, automotive parts transport, entertainment equipment transport, I-40/I-65 corridor coverage | Tennessee trucking companies transport automotive parts, entertainment equipment, and manufactured goods with tornado and flood risks. Nashville music industry equipment transport creates specialized liability for high-value instruments and sound equipment. |
How to Get the Best Cheap Business Insurance in Tennessee
Running a small business in the Volunteer State means juggling many responsibilities, including finding the right insurance coverage. These practical steps will help you secure reliable protection while keeping your premium costs manageable:
- 1
Assess your actual risks first
Start by identifying real risks specific to your Tennessee business operations. A Nashville restaurant needs strong liability and property coverage, while a Memphis consulting firm might focus more on professional liability protection.
- 2
Get quotes from multiple insurers
Insurance companies calculate risks differently, leading to varying prices for the same coverage. Contact at least three different providers to compare rates. Local Tennessee agents often know regional risks better and may offer more competitive rates.
- 3
Choose providers based on service quality
Look beyond just the premium cost when selecting an insurer. Check financial strength ratings and read reviews from other Tennessee business owners. A responsive claims department becomes crucial when you need to file a claim.
- 4
Maximize available discounts
Combine multiple policies with one insurer for better rates. A Knoxville retail store could bundle property and liability coverage, while implementing security measures might qualify for additional discounts.
- 5
Review coverage annually
Business needs change as your company grows. A Chattanooga startup that began with basic coverage might need expanded protection after adding new services or employees. Regular reviews ensure you maintain appropriate coverage at competitive rates.
Tennessee Business Insurance: Bottom Line
Based on our analysis, NEXT, The Hartford and Simply Business are Tennessee's best business insurance providers. However, what's ideal for you depends on your business risks and employee needs. Research each company's service quality, maximize discounts and select coverage that fits your budget.
Small Business Insurance in Tennessee: FAQ
Small business owners in Tennessee often have questions about finding the right business insurance coverage. Our insurance experts answer the most common questions below.
What business insurance is required by law in Tennessee?
Tennessee businesses with vehicles must carry commercial auto insurance ($25,000/$50,000/$15,000 limits). Workers' compensation is mandatory for companies with five or more employees. Licensed contractors need surety bonds and general liability coverage.
How much does business insurance cost in Tennessee?
Business insurance costs in Tennessee range from $72 to $144 monthly. Workers' compensation is most affordable at $72, while BOPs cost $144. Actual costs depend on your industry, business size and claims history.
Which company has the cheapest business insurance in Tennessee?
The Hartford offers the lowest rates at $82 monthly in Tennessee, followed by Thimble ($91) and Simply Business ($94). Always compare quotes since rates vary based on specific risks.
What business insurance do I need for my small business in Tennessee?
Begin with general liability insurance to protect against customer injuries and property damage claims. Add workers' compensation for employees and commercial auto coverage for business vehicles. Construction companies need equipment coverage, while retail stores require property insurance.
What is the best business insurance company in Tennessee?
NEXT leads Tennessee's business insurance market with a MoneyGeek score of 4.62 out of 5. The Hartford and Simply Business are also excellent choices. Compare multiple insurers to find coverage that matches your business requirements.
Do small businesses in Tennessee need workers' compensation insurance?
Tennessee makes workers' compensation optional for most businesses. However, purchasing coverage protects small business owners from potentially devastating employee injury lawsuits and financial losses.
What factors affect business insurance costs in Tennessee?
Your industry impacts costs the most. Construction businesses pay higher premiums than retail stores. Location affects rates, particularly in areas prone to natural disasters. Employee count influences workers' compensation costs, while claims history and safety measures affect rates.
How do I get cheap business insurance in Tennessee?
Compare quotes from top insurers like NEXT and The Hartford. Bundle multiple policies, implement safety programs and assess your exact coverage needs to secure better rates.
What's the difference between general liability and errors and omissions (professional liability) insurance in Tennessee?
General liability insurance covers property damage and physical injuries at your business. Professional liability (E&O) covers financial losses from service mistakes, poor advice or missed deadlines.
Can I get business insurance quotes online in Tennessee?
Yes, leading insurers provide online quotes for Tennessee businesses. Simple operations can get instant quotes, while complex businesses may need agent assistance for specialized coverage.
How We Scored the Best Business Insurance Companies in Tennessee
Small business owners in Tennessee need reliable coverage that protects their operations without straining their budgets. We designed our methodology to help Tennessee entrepreneurs navigate challenges like severe weather risks and the state's optional workers' compensation laws.
We studied thousands of quotes from 79 industries across four coverage types for a two-employee firm with $300,000 annual revenue and $150,000 payroll. All policies included $1 million per occurrence and $2 million total per year, with BOPs adding $5,000 business property coverage.
- Affordability (50% of score): We compare rates across multiple carriers, factoring in coverage limits and deductibles to identify the most cost-effective options for Tennessee businesses.
- Customer experience (30% of score): Our analysis examines claims processing speed, customer support quality and digital tools based on verified policyholder feedback.
- Coverage options (15% of score): We evaluate policy customization options, industry-specific endorsements and coverage limits that match Tennessee business needs.
- Financial strength (5% of score): We assess each insurer's ability to pay claims using ratings from AM Best and other major agencies.
This approach helps Tennessee small business owners compare insurers on what matters most: affordable premiums, reliable service, adequate coverage and financial stability.
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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- National Centers for Environmental Information. "Billion-Dollar Weather and Climate Disasters." Accessed August 26, 2025.
- PR Newswire. "NEXT Empowers Agents with Enhanced Products, Cutting-Edge Digital Tools, Opening New Revenue Opportunities and Sparking Momentum in Small Business Insurance." Accessed August 26, 2025.
- Trustpilot. "NEXT." Accessed August 26, 2025.
- Trustpilot. "Simply Business US." Accessed August 26, 2025.
- Trustpilot. "The Hartford." Accessed August 26, 2025.