Business Insurance in Tennessee

The state of Tennessee requires businesses with five or more employees, full-time or part-time, to carry workers’ compensation insurance. Corporate officers are included in this headcount, even if they are ultimately excluded from coverage in your policy. Every business in the construction or coal mining industry must carry workers' compensation insurance, regardless of the number of employees.

Workers' comp covers medical costs for work-related injuries and illnesses, and provides disability benefits to injured Tennessee workers. It also protects employers from liability in the event of a workplace injury.

All vehicles with a commercial plate in Tennessee must be covered by commercial auto insurance. This policy covers the cost of accidents involving work vehicles.

Tennessee's minimum requirements for auto liability insurance are:

• $25,000 bodily injury liability per person
• $50,000 bodily injury liability per accident
• $15,000 property damage liability per accident

Trucking companies may need additional coverage to comply with regulations.

Though it's not required, personal vehicles driven for work purposes should be covered by hired and non-owned auto insurance (HNOA), as personal auto policies usually exclude business use. It can be added to commercial general liability insurance or a business owner's policy (BOP).