Popular QuestionsPopular Questions about Tennessee Business Insurance

Why should I have Tennessee business insurance?

Business insurance is designed to shield your company from financial losses caused by hazards such as severe weather, property crimes and liability lawsuits. This insurance can prove very beneficial, as is evidenced by the fact that in 2016 alone, businesses in Tennessee collected more than $3 billion in insurance claims.

A local independent agent can help you build a business insurance plan that is customized to meet the specific needs of your business.

How have other business owners used their commercial insurance?

Statistics predict that 40% of small businesses are likely to experience a property or general liability claim in the next 10 years. Here are some things these companies have been using their insurance on:

  • Theft or burglary: Average cost per claim - $8,000
  • Water damage and freezing pipes: Average cost per claim - $17,000
  • Wind & hail damage: Average cost per claim - $26,000
  • Fire damage: Average cost per claim - $35,000
  • Customer slip and fall: Average cost per claim - $20,000
How does Tennessee business insurance help me?

In Tennessee, commercial insurance will pay for losses, damage, and other expenses associated with covered events so that your business doesn’t have to. If your inventory is damaged, a client files a liability lawsuit, or one of your employees is severely injured on the job, you won't have to worry about how this will affect your business’s bottom line.

Here’s what you can expect a standard business insurance policy to do:

Pay for damage to your building

  • We call this “commercial property insurance.”
  • Example: A tornado destroys the roof of your business-owned warehouse.

Pay for damage to your business property

  • We call this “business property insurance.”
  • Example: A fire damages your storefront, and your backroom inventory is damaged by smoke.

Pay for damage to someone else’s property

  • We call this “general liability insurance.”
  • Example: An employee of your contracting company accidentally spills paint and destroys a Persian rug in a customer’s home.

Pay for someone else’s medical bills

  • We also call this “general liability insurance.” 
  • Example: A customer is injured when the escalator in your retail store stops suddenly.

Pay for accidents involving company vehicles

  • We call this “commercial auto insurance.”
  • Example: Your human resources manager rear-ends someone while driving to job fair in a company van.

Pay for employee injuries and work-related illnesses

  • We call this “workers' compensation.”
  • Example: An employee at your manufacturing plant suffers serious lung disease after inhaling some toxic dust particles.


Sometimes, these coverages are not enough to properly protect a business against all of its potential risk. Fortunately, there are many more products and options available to business owners so that you can find coverage against all your exposures. To make sure you're properly insured, we can match you with a local independent insurance agent who specializes in covering businesses in your industry.

Are Tennessee businesses required to have insurance?

A commercial insurance policy in and of itself is not required by law. However, some aspects of coverage may be. 

Businesses that have company-owned vehicles are required to carry commercial auto insurance. And all Tennessee construction and coal-mining businesses, and all other businesses with five or more employees, must have workers’ compensation insurance. And contracting businesses will nearly always be required to have contractors insurance when they are hired to do a job.

To learn more about coverage that you may need to carry, you can talk with a local independent insurance agent.

How do I find the best price for Tennessee business insurance?

Business insurance rates are calculated using a number of factors such as the type and size of your business, the number of employees you have, your liability coverage needs and the amount and types of coverage you want. 

Policies can vary significantly by business industry, so it is best to talk with an experienced insurance agent when building a suitable and comprehensive policy for your business. These agents can help you make sure that you are getting coverage for all of your company’s potential exposures while not paying for coverage you do not need.

Also, because independent agents can work with multiple insurers, they can search for the best price for each type of coverage you need. Sometimes this means building a business insurance portfolio that includes policies from several different insurance companies. Don’t worry. You will still only have one point-of-contact with your independent insurance agent.

Are there any independent agents in Tennessee?

Yes! There are currently 366 Trusted Choice agents in Tennessee who are ready to help. Did you know that independent insurance agents can work with several different insurance providers to help you build a comprehensive and competitively priced business insurance portfolio? Work with an agent near you to ensure that your business is fully covered against all of its potential risks.

What are the top business insurance companies in Tennessee?

Independent agents compare policies and rates from a variety of highly rated insurance companies in order to find you the coverage you need at a price you can afford. 

When building your business insurance portfolio, your local agent may find that it is in your best interest to work with more than one insurance company. While one company may offer the best workers’ compensation coverage, another may have the best commercial vehicle policy. Independent agents enable you to get coverage from multiple companies while still having a single point of contact. 

InformationFind the Best Business Insurance in Your City

How does your city measure up?

  • Number of business in the US: 27,626,360
  • Number of businesses in Tennessee: 27,626,360
  • Burglary rate per 1,000 residents in the US: 4.69
  • Burglary rate per 1,000 residents in TN: 5.76
  • Auto theft rate per 1,000 vehicles in the US: 2.37
  • Auto theft rate per 1,000 vehicles in TN: 2.76


CityPopulationNumber of Established FirmsBurglary Rate Per 1,000 ResidentsAuto Theft Rate per 1,000 Vehicles
Nashville667,56068,2284.292.64
Memphis652,23670,89113.944.93
Knoxville187,34719,1589.864.63
Chattanooga179,13916,3488.835.96
Clarksville153,2058,1004.661.19
Murfreesboro136,3728,8704.831.53
Franklin78,32110,0031.850.48
Jackson66,8475,9579.701.90
Johnson City66,3915,3225.891.79
Kingsport53,3744,4417.052.90
Collierville50,2864,2011.800.57
Cleveland44,4833,7719.145.72
Brentwood42,6676,2362.340.26
Columbia38,2662,5615.511.80
Cookeville33,4523,9979.143.13
Tullahoma19,2292,1495.041.20
Dyersburg16,4731,94215.742.21

Nashville, TN Business Insurance

Covering Your Business Assets

Property: The property crime rate in Nashville is lower than the state average, and that is good news for business owners looking to insure their property. In addition to coverage against crime, your policy can also cover loss and damage due to hazards like inclement weather and accidental fires.

Commercial auto: If your business owns a vehicle or a fleet of vehicles, you will need to cover them with commercial auto insurance. Your rates will be based on several factors, including the number and types of vehicles you are covering and the risk of collisions and of vehicle theft in your city.

Workers’ Compensation

Workers’ compensation insurance can pay for medical bills and lost wages for workers who are injured or become ill on the job.  Rates are based on your company’s overall payroll and the potential risks faced by your employees according to their job classifications. 

For every $100,000 in annual payroll, here is an estimate of what businesses in the two leading industries in Nashville, TN would pay for workers’ comp coverage:

  • Construction industry, $10,847
  • Retail trade industry, $1,230

As you can see, rates for these two industries are very different. That is because construction workers are far more likely to suffer severe injuries than workers in retail stores. Your local independent agent can help you find a policy that is well-suited to businesses in your industry.

Memphis, TN Business Insurance

Covering Your Business Assets

Property: In addition to damage caused by severe weather events, property crimes like theft and arson can lead to expensive losses if you do not have sufficient business insurance. The high crime rate in Memphis can affect your coverage rates.

Commercial auto: Whether you are insuring a delivery van or a fleet of semi-trucks, commercial vehicle insurance can cover your liability risks and property damage. If you engage in interstate commerce, a local agent can ensure that your coverage meets all state and federal requirements.

Workers’ Compensation

Workers’ compensation insurance is required if your Memphis business employs at least five workers. This insurance can cover medical treatment, lost wages, and other costs associated with workplace injuries. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates can vary significantly from one business to the next.

Based on a $100,000 annual payroll, here is an estimate of what businesses in the two leading industries in Memphis, TN would pay for workers comp coverage:

  • Transportation and warehousing industry, $6,115/year
  • Manufacturing industry, $4,510/year

Vehicle collisions and accidental injuries in warehouses happen frequently, making this one of the most expensive industries for coverage. The cost for covering employees in manufacturing jobs can vary from the average amount according to the type of manufacturing plant you own, as some types of machinery are more dangerous than others.

Knoxville, TN Business Insurance

Covering Your Business Assets

Property: Theft, vandalism, and accidental fires can lead to large, costly business property losses. So can damage caused by Knoxville’s severe weather events like hailstorms and tornadoes. Fortunately, when you have the right business insurance in place, your company will be able to repair damage and continue to function without experiencing a large financial loss. 

Commercial auto: You are required to have commercial auto insurance if your business owns a vehicle or a fleet of vehicles. Rates are based on a number of factors like the types of vehicles you are covering. It costs far more to insure a 12-passenger van than a cargo van, since your liability risks are greater when you have passengers. Large trucks and construction vehicles will also need to meet certain coverage requirements mandated by the state.

Workers’ Compensation

Workers’ compensation insurance covers the cost of medical treatment, lost wages, and other expenses related to injuries or illnesses employees suffer while doing their jobs. It is required for all Tennessee construction and coal-mining businesses and all other companies that have at least five employees. Worker’s compensation rates are assigned according to your company’s overall payroll and the types of jobs your employees do.

Based on a $100,000 annual payroll, here is an estimate of what businesses in the two leading industries in Knoxville, TN would pay for workers’ comp insurance:

  • Retail trade industry, $1,230/year 
  • Accommodation and food service industry, $1,620/year 

Whether an employee suffers a back injury while unloading inventory or is burned in a kitchen fire, you can rest assured that their medical costs will be covered and they will be able to receive partial pay while they are home recuperating from their injuries. Talk to an independent agent in Knoxville for help finding a workers’ compensation insurance company that is well-suited to meet the needs of businesses in your industry.

Chattanooga, TN Business Insurance

Covering Your Business Assets

Property: A sufficient amount of business property insurance can shield your company from losses related to hazards like accidental fires, property crimes, and severe weather events like heavy winds and hailstorms. You can make sure your business is properly insured by working with an independent insurance agent in Chattanooga.

Commercial auto: You can't control other drivers, let alone criminals who decide to break into your company car. If your Chattanooga business owns a vehicle or fleet of vehicles, you will need to carry commercial auto insurance. Rates for coverage can vary according to the number and types of vehicles you are covering, as well as the risk of collisions and vehicle theft where your employees will be driving.

Workers’ Compensation

Workers’ compensation insurance covers medical expenses and paid time off for employees who are injured or become ill on the job. If your Chattanooga business is in the construction or coal-mining business or has at least five employees, you are required by law to have this insurance. Rates for coverage can vary significantly from one business to the next, depending on the types of jobs your employees do and your company’s overall payroll. 

Based on a $100,000 annual payroll, here is an estimate of what businesses in the two leading industries in Chattanooga, TN  would pay for workers’ comp insurance:

  • Manufacturing industry, $4,510/year 
  • Retail trade industry, $1,230/year 

Employees who work in manufacturing plants suffer more frequent and more severe injuries than employees in retail stores, so the cost for coverage in this industry is higher. You can talk to an independent insurance agent in Chattanooga for help finding a suitable and competitively priced policy.

Murfreesboro, TN Business Insurance

Covering Your Business Assets

Property: Your business has likely invested a lot in its assets such as computers, furniture, inventory, and supplies. Business property insurance can help cover the cost of repairing or replacing this property if it is lost or damaged by a covered event. Find a policy and rate that works for your Murfreesboro business by teaming up with a local independent agent.

Commercial auto: Many businesses in Murfreesboro have company-owned vehicles. If yours is among them, you will need to cover these cars, vans, or trucks with a commercial auto insurance policy that meets or exceeds the state’s minimum coverage requirements. A local independent agent can help you find a great policy at a competitive price.

Workers’ Compensation

Workers’ compensation insurance covers medical bills and lost wages for workers who are injured while doing their jobs. It is required for Tennessee businesses that have at least five employees. If you have a construction or coal-mining business, you must have this insurance even if you have fewer than five workers. Rates are assigned according to your company’s payroll and the types of jobs your workers do.

Based on a $100,000 annual payroll, here is an estimate of what businesses in the two leading industries in Murfreesboro, TN would pay for workers’ comp coverage:

  • Retail trade industry, $1,230/year 
  • Manufacturing industry, $4,510/year 

Base rates are set by the state in accordance with the various hazards of each particular job. This means that employees in hazardous professions like construction will cost more to cover than those with few risks, like clerical workers. Maintaining a safe workplace and keeping accidents at a minimum can help lower your workers’ compensation premium.