Best Small Business Insurance in Tennessee 2023: Outstanding Picks

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Best Small Business Insurance in Tennessee

Starting a small business in Tennessee can be a rewarding and fulfilling experience, but it’s essential to protect your investment with the right insurance coverage. As you start an LLC in Tennessee, it’s crucial to research and choose the best small business insurance that fits your needs. 

With many insurance providers offering a wide range of coverage options, selecting the best small business insurance can take time and effort. But fear not! LLCBase is here to help you navigate this critical aspect of running a successful business. In this guide, we’ll introduce you to the best small business insurance in Tennessee for 2023, highlighting their unique offerings, eligibility criteria, financial strength, and customer satisfaction. 

Best Small Business Insurance

What is a Business Insurance

Business insurance refers to a set of insurance policies designed to protect a business and its owners from potential financial losses and liability risks associated with operating a business. These policies cover various aspects of the business, safeguarding it from unforeseen events such as property damage, lawsuits, employee injuries or illnesses, and interruptions in business operations.

The diverse range of business insurance policies in Tennessee allows business owners to customize their coverage to suit their industry’s specific needs and potential risks. By investing in the appropriate business insurance policies, owners can focus on growing their business confidently, reassuring that they are protected against any unforeseen challenges that may arise during their entrepreneurial journey.

Small Business Insurance Coverage

If you want to start a business in Tennessee and apply for business insurance, remember that it only covers the following:

  • Third-party bodily injury and property damage resulting from your business operations
  • Professional errors and omissions
  • Damage to your business property
  • Employee injuries and illnesses
  • Auto accidents involving your business vehicles
  • Cyberattacks and data breaches
  • Loss of income due to a covered event
  • Claims related to wrongful termination, discrimination, and harassment

On the other hand, small business insurance generally does not cover the following:

  • Intentional acts of damage or harm
  • Damage caused by normal wear and tear
  • Floods and earthquakes (unless specifically added to your policy)
  • Employee dishonesty or criminal activity
  • Losses resulting from business activities not disclosed to the insurance provider

10 Best Small Business Insurance Providers in Tennessee

Choosing the right insurance provider is critical for any small business owner who wants to start a business; perhaps you want to start an insurance company in Tennessee. Tennessee is home to a thriving entrepreneurial environment, making it essential for businesses to have comprehensive insurance coverage. To help you make an informed decision, we have compiled a list of Tennessee’s best small business insurance providers.

1. Allianz

Allianz is a global insurance and financial services provider with a strong presence in over 70 countries. They offer various insurance coverages, including general liability, professional liability, commercial property, and workers’ compensation insurance. Allianz is recognized for its extensive coverage options, global expertise, and strong financial rating, making it a reliable choice for small businesses seeking comprehensive insurance solutions.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A+ (Superior)

Pros
  • Wide range of coverage options
  • Strong financial rating
  • Global presence and expertise
Cons
  • Limited online resources for policy management
  • Not specialized in small businesses
Apply to Allianz

2. Allstate

Allstate is a well-known national insurance provider that offers a variety of customizable insurance policies for small businesses with up to 500 employees. Their coverage options include general liability, commercial property, and workers’ compensation insurance. Allstate is known for its personalized service through local agents and online policy management tools, making it a convenient choice for small business owners.

Eligibility Criteria: Must be a small business with up to 500 employees

Complaint Level: Average

A.M. Best Financial Strength Rating: A+ (Superior)

Pros
  • Customizable coverage options
  • Local agents for personalized service
  • Online policy management tools
Cons
  • Limited industry-specific coverages
  • Mixed customer service reviews
Apply to Allstate

3. Clear Blue Insurance

Clear Blue Insurance is a specialty provider focusing on niche and hard-to-place risks. They offer tailored coverage options for small businesses, including general liability, professional liability, and commercial property insurance. With a strong financial rating and a commitment to underwriting unique risks, Clear Blue Insurance is an ideal option for businesses looking for customized insurance solutions.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A- (Excellent)

Pros
  • Specializes in niche and hard-to-place risks
  • Tailored coverage options
  • Strong financial rating
Cons
  • Limited online resources for policy management
  • Not well-known in the market
Apply to Clear Blue Insurance

4. Farmers Insurance

Farmers Insurance is a national insurance provider offering a wide range of coverage options for small businesses with up to 500 employees. Their policies include general liability, commercial property, workers’ compensation insurance, and industry-specific coverages. Farmers Insurance is known for its local agents who provide personalized service and its commitment to meeting the needs of various industries.

Eligibility Criteria: Must be a small business with up to 500 employees

Complaint Level: Average

A.M. Best Financial Strength Rating: A (Excellent)

Pros
  • Wide range of coverage options
  • Local agents for personalized service
  • Industry-specific coverages available
Cons
  • Limited online policy management tools
  • Mixed customer service reviews
Apply to Farmers Insurance

5. Acuity

Acuity is a regional insurance provider offering comprehensive coverage options for small businesses. Their policy offerings include general liability, professional liability, commercial property, and workers’ compensation insurance. Acuity is recognized for its excellent customer service reputation, online policy management tools, and strong financial rating, making it a reliable choice for small business owners.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A+ (Superior)

Pros
  • Comprehensive coverage options
  • Excellent customer service reputation
  • Online policy management tools
Cons
  • Not available in all states
  • Limited industry-specific coverages
Apply to Acuity

6. CNA

CNA is a leading insurance provider offering various coverage options for small businesses, including general liability, professional liability, commercial property, and workers’ compensation insurance. They are known for their strong financial rating and industry-specific coverages, making them a solid choice for businesses seeking comprehensive insurance solutions.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A (Excellent)

Pros
  • Wide range of coverage options
  • Strong financial rating
  • Industry-specific coverages available
Cons
  • Limited online policy management tools
  • Mixed customer service reviews
Apply to CNA

7. Frankenmuth Insurance

Frankenmuth Insurance is a regional provider offering comprehensive coverage options for small businesses, including general liability, professional liability, commercial property, and workers’ compensation insurance. They are known for their excellent customer service reputation and personalized service through local agents, making them a reliable choice for small businesses in the Midwest.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A (Excellent)

Pros
  • Comprehensive coverage options
  • Excellent customer service reputation
  • Local agents for personalized service
Cons
  • Limited availability outside the Midwest
  • Limited online resources for policy management
Apply to Frankenmuth Insurance

8. Travelers

Travelers is a national insurance provider offering various coverage options for small businesses, including general liability, professional liability, commercial property, and workers’ compensation insurance. They are recognized for their strong financial rating and online policy management tools, making them a convenient choice for small business owners seeking comprehensive insurance solutions.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Average

A.M. Best Financial Strength Rating: A++ (Superior)

Pros
  • Wide range of coverage options
  • Strong financial rating
  • Online policy management tools
Cons
  • Mixed customer service reviews
  • Limited industry-specific coverages
Apply to Travelers

9. Chubb

Chubb is a global insurance provider offering comprehensive coverage options for small businesses, including general liability, professional liability, commercial property, and workers’ compensation insurance. They are known for their strong financial rating and global expertise, making them a reliable choice for businesses seeking extensive insurance solutions.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A++ (Superior)

Pros
  • Comprehensive coverage options
  • Strong financial rating
  • Global presence and expertise
Cons
  • Limited online resources for policy management
  • Not specialized in small businesses
Apply to Chubb

10. Westfield Insurance

Westfield Insurance is a regional provider offering comprehensive coverage options for small businesses, including general liability, professional liability, commercial property, and workers’ compensation insurance. They are known for their strong financial rating and personalized service through local agents, making them a reliable choice for small businesses in the Midwest and Northeast.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A (Excellent)

Pros
  • Comprehensive coverage options
  • Strong financial rating
  • Local agents for personalized service
Cons
  • Limited availability outside of the Midwest and Northeast
  • Limited online resources for policy management
Apply to Westfield Insurance

How to Apply for Business Insurance in Tennessee

Securing adequate insurance coverage is crucial to safeguarding your Tennessee small business against potential risks and liabilities. Whether you’re just starting or growing your enterprise, follow this step-by-step guide to applying for small business insurance in Tennessee confidently.

Step 1: Assess Your Insurance Needs

Analyze the specific risks your Tennessee business may face, including potential lawsuits, property damage, worker injuries, or cyber threats. Consider the following types of insurance to help you determine which coverage suits your needs:

  • General Liability Insurance
  • Property Insurance
  • Workers’ Compensation Insurance
  • Professional Liability Insurance
  • Cyber Liability Insurance
  • Business Interruption Insurance
  • Commercial Auto Insurance

Step 2: Research Tennessee Insurance Requirements

Each state has unique requirements for business insurance. Research Tennessee insurance regulations and mandatory coverages, such as workers’ compensation or commercial auto insurance, if applicable.

Step 3: Compare Insurance Providers

Create a list of reputable insurance providers licensed to operate in Tennessee. Compare their coverage options, limits, deductibles, and premiums to find the policy that best addresses your risks and fits your budget.

Step 4: Gather Necessary Documents

Before submitting your application, gather any necessary documents, including:

  • Business name and contact information
  • Federal Employer Identification Number (EIN)
  • Description of your business operations
  • Number of employees
  • Estimated annual revenue
  • Property details (if applicable)
  • Vehicle information (if applicable)

Step 5: Contact an Insurance Agent or Broker

Reach out to an insurance agent or broker to discuss your coverage needs and obtain insurance quotes. An agent can help you navigate the application process and provide guidance on obtaining the best protection for your Tennessee small business.

Step 6: Submit Your Application

Fill out the application form provided by your chosen insurance provider. Carefully input the required information and attach any requested documentation. Be accurate and thorough in your responses to ensure you receive the appropriate coverage.

Step 7: Review and Sign the Policy

Once approved, thoroughly review your insurance policy to ensure it accurately reflects the coverage you discussed with your agent or broker. Pay attention to any clauses, exclusions, or limits. If satisfied, sign the policy and make the initial premium payment.

FAQs

Which companies offer small business insurance in Tennessee?
Major insurance providers like Nationwide, State Farm, and Allstate offer small business insurance coverage in Tennessee.
What type of coverage can small business insurance provide in Tennessee?
Small business insurance can provide coverage for liability, property damage, business interruption coverage, and workers’ compensation in Tennessee.
How much does small business insurance in Tennessee usually cost?
The cost of small business insurance in Tennessee can vary based on the type of coverage required and the size of the business, but it usually starts around $450 per year.
Do Tennessee small businesses legally require insurance coverage?
Under Tennessee law, small businesses with employees are required to carry workers’ compensation insurance.
Can I customize my small business insurance coverage in Tennessee?
Yes! Most insurance providers in Tennessee offer customizable coverage options that allow small business owners to select the specific insurance their business requires.
How do I know how much insurance coverage I need for my Tennessee small business?
It depends on the size and type of business, but a licensed insurance agent can help you determine the amount of coverage needed.
Is small business insurance more expensive in Tennessee than other states?
The cost of small business insurance in Tennessee is generally competitive compared to other states in the US.
How fast can I get small business insurance coverage in Tennessee?
It is possible to obtain coverage in as little as 24 hours, however, the process can take longer depending on the insurance provider you choose.
Is cyber liability coverage available for small businesses in Tennessee?
Yes! Cyber insurance coverage options are available in Tennessee to protect small businesses from cyber threats.
Can a self-employed business owner in Tennessee get small business insurance?
Yes, self-employed small business owners in Tennessee can typically obtain small business insurance coverage.
Who is responsible for paying for small business insurance in Tennessee – the employee or the employer?
The cost of small business insurance in Tennessee is the responsibility of the employer.
How do small business owners file a claim with their insurance provider in Tennessee?
Most insurance providers have a hotline for policyholders to call in case of a claim.
How can I ensure I am getting a good deal on small business insurance in Tennessee?
It is essential to compare quotes from at least two or three insurance providers in Tennessee before settling on a policy.
Are there maximum payouts for small business insurance claims in Tennessee?
There is no set limit on the maximum payout for small business insurance claims in Tennessee. It depends on the terms of the policy.
What happens if I do not comply with Tennessee’s small business insurance regulations?
Failure to comply with Tennessee’s small business insurance requirements can result in significant fines and legal action.
Can I lower the cost of my small business insurance by increasing my deductible in Tennessee?
Yes, increasing your deductible in Tennessee can lower the overall cost of your small business insurance policy.
Is liability insurance a legal requirement for small businesses in Tennessee?
Liability insurance is not a legal requirement for small businesses in Tennessee, but it is highly recommended.
Does small business insurance include coverage for natural disasters in Tennessee?
Yes! Most small business insurance policies in Tennessee provide coverage for damages caused by natural disasters.
What should I do if my business is too high-risk for insurance providers in Tennessee?
Consider working with an insurance broker who can connect you with high-risk insurance providers in Tennessee.
Can I get small business insurance coverage for property damage caused by arson or theft in Tennessee?
Yes! Small Business Owners policy insurance can help cover losses in cases of theft or arson in Tennessee.
Is self-insuring a good option for Tennessee small business owners?
Self-insurance can be a viable option for some small business owners in Tennessee, but it does come with higher risk.
Are there any exemptions for small business owners regarding workers’ compensation insurance in Tennessee?
Executive-level officials in LLCs and corporations are exempt from Tennessee’s workers’ compensation law.
Can small business insurance in Tennessee help cover advertising injuries?
Yes! Small business insurance policies in Tennessee typically include coverage for advertising injury.
What is the difference between general liability insurance and professional liability insurance for small businesses?
General liability insurance provides coverage for bodily injury and property damage, while professional liability insurance covers claims related to services your business provided or failed to provide.
Can small business insurance in Tennessee protect me from cyberattacks?
Yes! Most small business insurance policies now have cybersecurity insurance included.
Will my small business need more than one insurance policy in Tennessee?
Depending on your business type, location, or risk tolerance level, you may need multiple policies in Tennessee for maximum coverage and protection.
Who can I contact to help me with my small business insurance needs in Tennessee?
Licensed insurance agents in Tennessee are happy to offer tailored assistance. Also, most providers allow online services and support for easy communication.
What is the difference between an insurance broker and an insurance agent in Tennessee?
An insurance agent works with one or a few specific insurance products like the policy offered by State Farm. An insurance broker, on the other hand, works with a variety of insurance companies in Tennessee to find the best fit policy much akin to an online insurance comparison service.
What is the best small business insurance in Tennessee?
That depends on your specific business and its needs. It’s best to consult with a licensed insurance agent in Tennessee to discuss your options.
What should I look for in a small business insurance policy in Tennessee?
You should look for a policy that adequately covers your business’s specific risks and liabilities, and complies with Tennessee’s state insurance requirements.
What types of insurance are required for small businesses in Tennessee?
Most businesses in Tennessee are required to have workers’ compensation insurance, and any business with employees is also required to carry employer’s liability insurance.
Do I need liability insurance for my small business in Tennessee?
Yes, liability insurance is recommended for all small businesses in Tennessee.
Can I bundle multiple types of small business insurance in Tennessee together into one policy?
Yes, most commercial insurance providers in Tennessee offer package policies that bundle multiple types of coverage together.
How much does small business insurance cost in Tennessee?
That varies depending on your specific business and the coverage you need. It’s best to get a quote from a licensed insurance agent in Tennessee.
What factors affect the cost of small business insurance in Tennessee?
Factors that can affect the cost of insurance include the type and size of your business, its location, its claims history, and the amount of coverage you need.
Is it required for me to have health insurance as a small business owner in Tennessee?
No, it’s not required by law to have health insurance as a small business owner in Tennessee, but it’s highly recommended.
What is business interruption insurance in Tennessee?
Business interruption insurance is coverage that helps businesses recover lost income and expenses due to unexpected events, such as natural disasters, pandemics, or other disruptions that make it impossible to do business as usual.
Do I need business interruption insurance for my small business in Tennessee?
Yes, it’s recommended to have coverage for unexpected events that could interrupt your business operations.
What is a BOP policy in Tennessee?
A BOP policy is a business owners policy that often includes comprehensive coverage against common business risks in one package.
What types of businesses generally purchase a BOP policy in Tennessee?
Small and medium-sized businesses, especially those operating in low-risk industries, often opt for a BOP policy in Tennessee.
How much coverage does a BOP policy offer in Tennessee?
That depends on the specific policy and business, but coverage often includes general liability, property damage, and business interruption insurance.
Can I purchase workers’ compensation insurance through the state of Tennessee?
No, Tennessee does not offer a state-run workers’ compensation program. Businesses can purchase coverage through private insurance carriers.
Do I need additional insurance coverage if I work from home in Tennessee?
Yes, you may need additional coverage such as a home insurance endorsement or add-on liability coverage to protect your business from home-based risks.
What is professional liability insurance in Tennessee?
Professional liability insurance, also known as errors and omissions insurance, provides coverage for businesses that offer professional services, advice, and expertise.
Do I need professional liability insurance for my small business in Tennessee?
It’s recommended for businesses that offer professional services or advice, such as consultants, lawyers, or other professionals.
Is cyber liability insurance necessary for my small business in Tennessee?
Yes, cyber liability insurance is highly recommended to protect businesses from data breaches, cyberattacks, and other online security risks.
What is directors & officers liability insurance in Tennessee?
Directors & officers liability insurance, also known as D&O insurance, provides coverage for individuals in executive leadership positions who are held responsible for certain lawsuits or claims.
Do I need D&O insurance for my small business in Tennessee?
It’s recommended for businesses with a board of directors or other executive leadership positions.
What is fidelity bond insurance in Tennessee?
Fidelity bond insurance provides coverage against financial loss due to employee dishonesty, such as theft or embezzlement.
Do I need fidelity bond insurance for my small business in Tennessee?
It’s recommended for businesses with employees who handle money or valuable assets.
What is excess liability insurance in Tennessee?
Excess liability insurance, also known as umbrella insurance, provides additional liability coverage beyond the limits of your other policies.
Do I need excess liability insurance for my small business in Tennessee?
It’s recommended for businesses facing higher exposure or liability risks.
What is a commercial automobile insurance policy in Tennessee?
A commercial automobile insurance policy provides coverage for any vehicles owned and used by a business for work-related purposes.
Do I need a commercial automobile insurance policy for my small business in Tennessee?
It depends on whether your small business uses vehicles for work-related purposes or not.
What is the benefit of working with a local insurance agent in Tennessee?
Working with a local agent ensures that you get personalized and tailored coverage for your business needs and local regulations.
How can I get a quote for small business insurance in Tennessee?
You can contact a licensed insurance agent or use an online quote tool to get a free quote on your insurance needs.
Can I change my small business insurance policy in Tennessee after it’s been purchased?
Yes, you can make changes to your policy by contacting your insurance provider or licensed agent in Tennessee.
What is a risk management plan in Tennessee?
A risk management plan is a strategic process of identifying, analyzing, and mitigating potential risks to your business operations and assets.
What is the importance of having a risk management plan for my small business in Tennessee?
Having a risk management plan in place can help protect your business from losses and financial costs, and ensure business continuity in case of emergencies or unexpected events.

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Conclusion

Selecting the best small business insurance for your Tennessee LLC is a crucial step in protecting your investment and ensuring the long-term success of your business. Take the time to research each provider, evaluate their eligibility criteria, complaint level, and financial strength rating, and consider the pros and cons of each option. By doing so, you can make an informed decision and choose the insurance coverage that best meets your needs and protects your business in The Volunteer State. Visit LLCBase for more information about starting an LLC in Tennessee.

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